"Plaintiff for his cause of action states that defendant on the 23d day of March, 1920, by his negotiable promissory note of that date, by him duly executed and delivered to plaintiff, promised for value received to pay to the order of plaintiff the sum of $1,035.00, with interest thereon at the rate of 7½ per cent. per annum, payable at the rate of $25 per month on the 23d day of each and every month after the date of said note until said principal sum and all interest were fully paid.
"Plaintiff states that it was further provided in said note that in the event of any default in the payment of said monthly payments of $25 each, when due, the principal sum of said note or any balance thereof, together with all interest accrued at the time of any default, should at the option of the owner of said note become immediately due and payable, and that, if not paid, the owner of said note should have the right to sue for the full amount of the face of the note or of any balance thereof, together with all interest accrued on the principal sum of said note or any balance thereof. Said note is herewith filed and marked Exhibit A.
"Plaintiff says that he is still the owner of said note; that on April 27, 1920, defendant paid $25 on account of said note; that on May 23, 1920, defendant paid another sum of $25 on account of said note, and that on June 23, 1920, defendant paid another sum of $25 on account of said note, making a total payment by defendant on account of said note in the sum of $75, and plaintiff states that the three payments of $25 each are indorsed upon
the back of said note herewith filed as Exhibit A.
"Plaintiff further states that defendant has failed and refused to mace any further payments on account of said note since the 23d day of June, 1920, and has made default in the payment of said note according to the terms thereof.
"Plaintiff further states that by the terms of said note and by reason of said default the entire balance of said note, to wit, the sum of $1,560.60, together with all interest accrued thereon, is now due, and payable to plaintiff, plaintiff having exercised the option provided for in said note that the entire amount of principal of said note or of any balance thereof would become immediately due and payable upon any default in the payment of said note by defendant, and plaintiff further states that on the 6th day of December, 1021, he gave defendant notice in writing that he availed himself of the option to declare any balance due on said note immediately due and payable, and did in said notice in writi declare to defendant that the balance of said note, to wit, the sum of $1,560.60, together with interest thereon from the date of said note at the rate of 71/2 per cent, per annum, was then immediately due and payable,. and did in said notice in writing on said 6th day of December, 1921, demand of defendant immediate payment of said sum, namely, $1,560.60 and interest.
"Wherefore, plaintiff prays judgment against defendant for the sum of $1,560.60, together with interest thereon at the rate of 7½ per cent. per annum from the 23d day of March, 1920, and for costs."
"Now, at this day, comes defendant in the above-entitled cause, and for answer to plaintiff's petition filed herein says that he denies each and every allegation therein contained, except as may be hereinafter specially admitted, or any knowledge or information thereof sufficient to form a belief, end, having fully answered in the premises, prays to be hence dismissed with his costs in this behalf expended.
"(2) For another and further answer this defendant says that prior to May 13, 1913, a corporation known as Nicholls-Ritter Financial Company was indebted to the plaintiff, Gus H. Sehelp, for a sum which on that date aggregated $4,439.90; that on said May 13, 1913, a corporation know as Nicholls, Ritter, Goodnow Realty Company executed and delivered to the said plaintiff its six certain promissory notes aggregating the sum of $4,439.90, all due and payable after date on ten days' demand, with interest from date at 7½ per cent. per annum, all of which said notes were without consideration moving between the said Nicholls, Ritter, Goodnow Realty Company, and the said Gus H. Schelp.
"Further answering, defendant says that at the date the said Nicholls, Ritter, Goodnow Realty Company executed and delivered the said notes to the said plaintiff the said Nicholls, Ritter, Goodnow Realty Company pledged to the said plaintiff certain notes, secured by deed of trust, dated April 29, 1910, for the sum of $4,500, made by John L. Shumate and Sarah Shumate, which said deed of trust is recorded in the recorder's office of the city of St. Louis in Book 2339, page 413, and conveyed to the trustee therein named, to secure the payment of said notes, the east 40 feet of lot 2 of block 36 of Gamble's second subdivision of Rose Hill, in city block 4131, said lot having a depth of 162 feet 6 inches, and improved by house No. 5912-12a, Bartmer avenue, in the city of St. Louis, Mo.; said notes secured by said deed of trust matured on or about, to wit, April 29, 1916.
"Further answering, defendant says that the condition of the said pledge, as aforesaid, with respect to the disposition of the collateral in the event of the nonpayment of said notes, is as follows:
"`In the event of the nonpayment of this note at maturity the holder thereof is hereby invested with full authority to use, transfer, hypothecate, sell or convey the said collateral, or any collateral substituted for or added to the above, or any part thereof, or to cause the same to be done, at public or private sale, with or without notice or demand of any sort, at such place and on such terms as the said holder thereof may deem best, and the holder of this note is authorized to purchase said collateral when sold for his or its own protection; and the proceeds of such sale, transfer, or hypothecation shall be applied to the payment of this note, together with all protests, damages, interest, costs, and charges due upon said note, or incurred by reason of its nonpayment when due, or in the execution of this power; the surplus, if any, after the payment of this note, together with all charges above stated, shall be paid to the drawer of this note.'
"Further answering, defendant says that at the date of the making of the said notes by the Nicholls, Ritter, Goodnow Realty Company, to wit, May 13, 1913, this defendant indorsed the said notes by writing his name upon the reverse of said notes, for the accommodation of said Nicholls, Ritter, Goodnow Realty Company; that when the same became due, according to their date, tenor, and effect, the said notes were never presented to the maker thereof, or its representative, and payment thereof demanded, and notice of the nonpayment thereof was never given to this defendant, in accordance with the law in such case made and provided.
"Further answering, this defendant says that on or about, to wit, the 15th day of May, 1914, the said plaintiff, without in any manner procuring the title to the said pledged notes and deed of trust other than that of pledgee, as aforesaid, and in violation of said contract of pledge, never at any time sold at public or private sale the said pledged notes and deed of trust, as aforesaid, and never credited the proceeds upon the principal, as in said pledge he was required so to do, but as said pledgee the said plaintiff ordered and directed the trustee appointed or nominated in said deed of trust, made by the said John L. Shumate and Sarah Shumate, as aforesaid, to sell said property under the power of sale contained in...
