Commercial City Bank of Americus v. Hall

• Citation: 203 F. 366
• Parties: COMMERCIAL CITY BANK OF AMERICUS v. HALL.
• Decision Date: 18 March 1913
• Court: U.S. District Court — Southern District of Georgia

203 F. 366

COMMERCIAL CITY BANK OF AMERICUS v. HALL.

United States District Court, S.D. Georgia, Western Division.

March 18, 1913

John R L. Smith, of Macon, Ga., for Commercial City Bank.

SPEER District Judge.

This is a contest between the Commercial City Bank of Americus and George C. Hall, a bankrupt. It has been passed upon by the referee and brought here by a petition for review. It appears from the evidence that the bank held a mortgage dated January 11, 1909. This was given to secure the payment of a note made by the bankrupt for the sum of $1,000, and due on demand, 'and all other notes or drafts which the grantor may execute to the grantee within 12 months succeeding this date to the amount of $1,000. ' The mortgage pledged the property following:

'One light chestnut sorrel horse, named Happy Bob, about five years old; one dark chestnut sorrel horse, named True Tucker, about six years old; one black horse, named Frank about ten years old; one black mare mule, named Beck, about seven years old; one red mare mule, named Mary, about eight years old; one two-horse wagon and one one-horse wagon; one single low-wheeled rubber-tire buggy.'

Of these assets thus mortgaged it seems that Happy Bob was of more value than True Tucker, and the rest of his stable companions, not omitting one two-horse and one one-horse wagon and the low-wheeled rubber-tire buggy.

It appears from the evidence that the bank was aware of the superior value of Happy Bob, and demanded that he should be sold. The bankrupt testifies that the president of the bank told him that he must sell Happy Bob at some price and take up the mortgage on the 20th. Happy Bob brought $2,000. The bankrupt testifies that he carried this sum to the bank on the 22d and instructed that it be applied on the mortgage. He also testified that he asked for his note and mortgage, but that Mr. McNulty, the cashier, said that he could not find it right then, but would find it and hand it to him. He went back for his mortgage afterwards, but did not get it. This statement was in part denied by the cashier of the bank. He testified that there were no instructions to apply the price of Happy Bob to the discharge of the mortgage. He also testified that Hall had an overdraft of something like $3,000. He, however, added that he knew the horse had been sold, and that the $2,000 was the proceeds of the sale, and the bank made no demand on Hall for the payment of any particular portion of his debt out of...