In re Federal Contracting Co.
| Decision Date | 14 January 1914 |
| Docket Number | 2049. |
| Citation | 212 F. 693 |
| Parties | In re FEDERAL CONTRACTING CO. v. FIRST NAT. BANK OF BEARDSTOWN. WILLS |
| Court | U.S. Court of Appeals — Seventh Circuit |
From the agreed statement of facts, it appears that the Federal Contracting Company, being indebted to the First National Bank of Beardstown, Cass county, Ill., in the sum of $20,000 according to the terms of its five promissory notes, did on November 9, 1911, make, execute, and deliver to said bank its two certain chattel mortgages, covering personal property in said county of Cass, for the purpose of securing said notes. One of said mortgages was acknowledged twice-- once before Homer K. Galpin, 'a clerk of the municipal court in the . . district, in the county of Cook and state of Illinois,' and once before a justice of the peace 'of the city of Beardstown in the county of Cass and state of Illinois. ' The other was acknowledged once before 'Homer K. Galpin, clerk of the municipal court of the First District in the county of Cook,' etc., and again before 'a justice of the peace of the city of Beardstown in the county of Cass and state of Illinois. ' Each of said mortgages was twice recorded-- once in the recorder's office for Cook county, Ill., on May 16, 1912 and once in the recorder's office for said Cass county Ill., on May 20, 1912.
From the statement of facts it further appears that on December 30, 1912, creditors filed their petition asking to have said Federal Contracting Company declared a bankrupt. Afterwards such proceedings were had that said Federal Contracting Company, hereafter herein termed the bankrupt, was adjudicated a bankrupt on March 25, 1913.
On December 30, 1912, one of the creditors of the bankrupt filed its petition for, and the District Court granted, an order restraining said mortgagee, the First National Bank of Beardstown, from attempting to foreclose its said mortgages or take possession of the mortgaged property, alleging that the chattel mortgages were invalid.
After the appointment of a trustee in bankruptcy, said bank filed its petition praying for a sale of the property covered by the mortgages, which was contested by the trustee upon the ground that the mortgages were improperly acknowledged, and for other reasons. The referee found in favor of the mortgagee, and ordered that the mortgaged property be sold and the proceeds applied on the several mortgage indebtedness. The trustee presented a petition for review by the District Court, which court approved and confirmed the referee's report.
For further facts see opinion filed in case No. 2047 in the same bankrupt's estate, entitled the Fairbanks Steam Shovel Company v. William V. Wills, trustee, etc., 212 F. 688, 128 C.C.A. . . ., decided at the present session of this court.
The errors assigned are, in substance, that the court held the mortgages to be valid and ordered the mortgaged goods to be sold and the...
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