63 Neb. 682 | Neb. | 1902
This is a suit brought in the district court of Harlan county by the Cheshire Provident Institution against Henry Feusner and Ellen Feusner, his wife, to foreclose a mortgage given to secure a note for $500, with interest, executed October 11, 1886, by Feusner and wife, payable to Carlos C. Burr on January 1,1892, at the First National, Bank at Lincoln, Nebraska. The petition is in the usual" form, and alleges that plaintiff purchased the note and mortgage from C. C. Burr in the usual course of business, for value and before maturity. The answer admits the execution and delivery of the note and mortgage as alleged, and pleads that on or about April 24, 1890, the defendants paid the note and mortgage in full to the plaintiff, being the sum of $500 principal, and $10 interest thereon, up to January 1, 1891. There was judgment for defendants, and plaintiff prosecutes this appeal. It appears from the record that, early in the year 1886, Burr, who for some time had been engaged in the farm loan business at Lincoln, wrote to plaintiff, and asked it if it wished to invest some money in western farm mortgages. Arrangements were finally completed by which plaintiff agreed to take $10,000 worth of farm mortgages. It was arranged that the notes and mortgages should be taken in the name of Burr, and by him indorsed and. guaranteed,
The single question presented by this controversy is whether Burr was the agent of plaintiff. If he was, then payment to him was payment to plaintiff. If he was not, then his receipt of the principal sum due can not have the effect of discharging the indebtedness. From the facts already detailed, it is clear that the money loaned by Burr in these various transactions was not his money, but that of plaintiff, and that the notes and mortgages were made payable to him, and by him guaranteed and indorsed to plaintiff, only for convenience in the transaction of the vast business in which these parties were engaged. Plaintiff resided in the east, at a considerable distance from the properties which secured its loans, and the reason for taking these loans in the name of Burr was based in its confidence in his financial standing, as well as his superior facilities for passing upon the value of the securities offered. But this is an equitable proceeding, and equity looks at the substance. These transactions, notwithstanding the form taken by them, were, in reality and effect, loans by the plaintiff, through a broker or agent, to the borrower. The record shows beyond question that Burr was the general agent of plaintiff in the transactions narrated, as he was clearly authorized to transact all of plaintiff’s loan business in the section where Burr was located. Cruzan v. Smith, 41 Ind., 288. Many letters, covering a correspondence which lasted through ten years, are in the record, in many of which plaintiff expressly authorizes Burr to make collections, and sends the papers therewith. In other instances, remittances from Burr of interest or principal are acknowledged, with the statement that papers to cover the remittances were being thereupon sent to Burr. And in still others, the statement is made that plaintiff has honored Burr’s draft in some particular loan, naming the loan and its amount, and urging him to send
Plaintiff’s claim that in receiving payments from Burr from time to time, and in sending papers to him “for collection and remittance,” it was merely looking to him on his guaranty, can not avail it. In the commencement of these negotiations, and on March 3,1886, plaintiff sent this - telegram to Burr: “You may send ten thousand. Why not - make to your order and assign to us or in blanks.” In an explanatory letter mailed the same day, it says, through Treasurer Nims: “I suggest have loans payable to your order, as I have supposed that the best form. Is there any reason for making to us direct?” This suggestion was adopted, and pursued throughout. It is true, no reason appears to have been suggested Avhy the loans should have been made payable direct to plaintiff, but the fact that the question was submitted in this form argues strongly against the claim of plaintiff that it was merely proposing to purchase loans previously made by Burr on his oavu account; for, if this alone had been in its contemplation,there could have been no conceivable reason why the loans should have been made in the name of plaintiff direct. Moreover, the correspondence above detailed conclusively shows that the loans referred to were not yet in being, and both parties to the proposed contract contemplated that the money to be loaned was to come from plaintiff direct, notAvithstand-. ing the loans were by agreement made payable to Burr, and by him guaranteed and indorsed. The suggestion of
It seems to lis that the finding of the trial court that Burr was plaintiff’s agent for the collection of the principal sum due on the loan in controversy is amply sustained by the evidence. It is therefore recommended that the judgment of the district court be affirmed.
By the Court: For the reasons stated in the foregoing opinion, the judgment of the trial court is
Affirmed.