In re Beerman

• Decision Date: 29 November 1901
• Docket Number: 663.
• Citation: 112 F. 663
• Parties: In re BEERMAN.
• Court: U.S. District Court — Northern District of Georgia

112 F. 663

In re BEERMAN.

No. 663.

United States District Court, N.D. Georgia.

November 29, 1901

C. D Maddox, and E. D. Thomas, for intervener.

J. L Travis, for bankrupt.

Reynolds & McGill, for trustee.

NEWMAN District Judge.

The report of the referee in this case as to the matter now in hearing is on the intervention filed by F. M. Powers, setting up and asking to have enforced a mortgage for $200 on the stock of goods of the bankrupt. The question is whether or not this mortgage is void under the bankruptcy act. The facts show that the bankrupt, on the 15th day of June, 1901, owed J. J. & J. E. Maddox, wholesale merchants, $192; that at that time the agent of J. J. & J. E. Maddox procured Powers to lend to Beerman, the bankrupt, the sum of $192,taking his note and a mortgage on his stock of goods for $200 to cover the amount loaned and interest; that a check was given by Powers to Beerman for $192, which, on the same date, was indorsed by Beerman to J. J. & J. E. Maddox, and collected by them, which is shown by the check and the indorsements thereon. The evidence on the subject was as follows:

F. M Powers, the mortgagee and intervener here, testified:

'I lent the money, thinking it was at eight per cent., at the suggestion of Mr. L. B. Jackson, agent for Messrs. J. J. & J. E. Maddox. I did not know Mr. Beerman, nor had never seen him. I had seen his place of business. Do not think I had any conference with Mr. Maddox. A bond was given me to indemnify me against loss by Mr. Maddox. This bond is in evidence. I think the bond and mortgage were all drawn about the same time, possibly not on the same date. I stated to Mr. Jackson that if they would make me perfectly secure I would lend the monty for $8.00. This is the first time I have entered into this kind of a transaction. It did not see any member of the firm except Mr. L. B. Jackson. I told him that Mr. Maddox should secure me. Mr. Jackson came to see me, and said: 'I wish you to make this loan, and it is good without any bond. Mr. Beerman is in good shape.' I did not know Mr. Maddox's object. I wished to be secured. I did not rely on Mr. Beerman's solvency,-- perhaps partially, but not absolutely. I made no investigation except through Mr. Jackson. I suggested Mr. Maddox giving bond. I did not know absolutely that the money to be loaned was going to pay the debt of J. J. & J. E. Maddox, but I thought so at the time. I told Mr. Jackson to give me a bond, and I would loan the money. Mr. Jackson manifested much interest in the matter. I never spoke a single word to Mr. Beerman, nor did I rely on Mr. Beerman's solvency. I requested that a bond was to be given me before I saw Mr. Beerman. I know of Mr. Jackson's connection with J. J. & J. E. Maddox. I know that J. J. & J. E. Maddox got the money that I loaned Mr. Beerman. I had no agreement as to where the money was go to. I believe I knew where it was going from the special interest taken in the loan by Mr. Jackson. He manifested considerable interest in cutting down the interest I was to charge. Mr. Jackson had never before made any point on the interest that I charged. I knew the bond was good. I would not have loaned the money without the bond at that rate of interest. I might have loaned it without the bond at big interest. I put one note in the bank, and it was returned unpaid. I was absent from the city when Mr. Beerman went into bankruptcy. I got a letter from Mr. Thomas that the note had been returned unpaid by the bank. I would not have loaned Mr. Beerman money had I known he was going into bankruptcy. Mr. Beerman did not turn over the check for the money-- $192.00-- in my office. I handed the check to Mr. Beerman, and he went out of the office with Mr. Jackson. I knew that Mr. Beerman owed J. J. & J. E. Maddox $192.00, and I supposed that they would get the money on account of their giving bond to indemnify me against loss. I did not calculate the per cent. at the time. I thought I was charging eight per cent. but I

...