In re Walker Grain Co.

• Decision Date: 04 December 1923
• Docket Number: 4206.
• Citation: 295 F. 120
• Parties: In re WALKER GRAIN CO. [1] v. WILKINSON. FARMERS' & MECHANICS' NAT. BANK
• Court: U.S. Court of Appeals — Fifth Circuit

295 F. 120

In re WALKER GRAIN CO. ^[1]

FARMERS' & MECHANICS' NAT. BANK v. WILKINSON.

No. 4206.

United States Court of Appeals, Fifth Circuit.

December 4, 1923

Rehearing Denied January 15, 1924.

J. A Templeton and Clay Cooke, both of Fort Worth, Tex., for petitioner and appellant.

Stanley Boykin, H. C. Ray, and Geo. M. Connor, all of Fort Worth Tex. (Geo. M. Connor, Capps, Cantey, Hanger & Short, and Boykin & Ray, all of Fort Worth, Tex., on the brief), for respondent and appellee.

Before WALKER and BRYAN, Circuit Judges, and GRUBB, District Judge.

WALKER Circuit Judge.

By petition to revise and also by appeal Farmers' &amp Mechanics' National Bank of Fort Worth, Tex. (herein called the bank), seeks the review of an order of the court affirming an order of the referee in bankruptcy sustaining a motion made by the trustee in bankruptcy of the Walker Grain Company that the bank be required by summary order to restore to the trustee a specified sum of money belonging to the bankrupt's estate paid to the bank after the filing of the petition in bankruptcy on a note of the bankrupt to the bank, with interest thereon from the date of such payment. Walker Grain Company was adjudged bankrupt on an involuntary petition filed against it on August 16, 1918. The referee appointed a receiver of the estate of the alleged bankrupt in pursuance of an application of the petitioning creditors filed on August 22, 1918. The bankrupt was enabled to retain possession of its property after the appointment of the receiver and after the bankruptcy adjudication by virtue of stays granted upon the execution of supersedeas bonds successively given on an unsuccessful petition to revise the order of the referee appointing a receiver, on an unsuccessful appeal to this court from the order of the court affirming such order of the referee, and on an unsuccessful appeal to this court from the bankruptcy adjudication. The following are the referee's findings with reference to the bank:

'I find that on July 27, 1918, the Walker Grain Company executed and delivered to the respondent, Farmers' &amp Mechanics' National Bank, Fort Worth, Tex., its promissory note in the sum of ten thousand dollars ($10,000.00), payable on demand, and that the said bankrupt on said date advanced to the said Walker Grain Company said amount of money; that said note was in no manner secured, except by ten thousand dollars ($10,000.00) par value of Liberty Bonds registered in the name of J. L. Walker and claimed by the said J. L. Walker to be his individual property. I find that there was paid on said note by the bankrupt on October 11, 1918, the sum of one thousand six hundred and fifty dollars ($1,650.00), and on November 2, 1918, the sum of eight thousand five hundred and sixty dollars ($8,560.00), and that such payments were not an offset against any deposits of the Walker Grain Company in said bank, as at said time there were no deposits to the account of the said Walker Grain Company in said bank; that at the time of said payments the bank held no character of lien or security, except the Liberty Bonds aforesaid, claimed under oath by the said J. L. Walker to be his individual...