217 Pa. 506 | Pa. | 1907
Opinion by
On March 22, 1892, The Chestnut Street Trust and Saving Fund Company, of which William M. Singerley was president, lent him $50,000 on his promissory note, taking as collateral security for its payment an assignment of a bond and mortgage for $100,000, given by him to H. G. Hart. They were executed to secure the payment of this note, but, instead of being given directly to the trust company, were given to Hart, its title officer. This was evidently a device of Singerley’s to avoid the record evidence of his indebtedness to the institution of which he was president. On the maturity of the note, March 22, 1893, it was renewed by Singerley for another year. On March 22, 1894, when the renewal matured, he continued the loan by substituting for his own note that
Four defenses were set up in the court below : (1) The defendant acted as the agent of William M. Singerley, and the plaintiffs, having pursued him for the payment of the debt, have acknowledged the agency and are restricted to the principal for payment; (2) there was an understanding between the irust company and the defendant that either he was not to be held liable in any event upon the note, or that his liability was to be restricted to the collateral pledged ; (3) the defendant received no consideration for the note; and (4) the note has been paid in the eye of the law, although not actually paid, on account of an erroneous application by the appellees of assets of William M. Singerley to the payment of other debts instead of to the one in suit.
As to the first defense it is sufficient to say that the finding of the referee is that Hart was an accommodation maker of the note and did not sign it as agent or surety for Singerley. The only witness as to the circumstances.attending the making of the note was Hart himself, and there is nothing in his testi
He did not become accommodation maker at the instance of
On February 10, 1898, Singerley being deeply involved financially,executed to George H. Earle, Jr., receiver of The Chestnut Street National Bank, as collateral security for his indebtedness to it, an assignment, subject to prior assignments, of all his interest in the stock and bonds of the Record Publishing Company. On the same day, subject to the assignment made to the receiver, he assigned to the appellees the balance of his interest in these Record securities, to secure his indebtedness to the trust company. He died February 27, 1898, hopelessly insolvent. In a proceeding in the circuit court of the United States for the' eastern district of Pennsylvania, instituted for the purpose of having the pledged securities sold, the amount due to the appellees was fixed in the decree ordering their sale. The indebtedness, included the balance due upon this note, and it was decreed that the payment of Singerley’s debts, including this one, but not specially mentioning it, should be paid out of the proceeds of the sale of the securities. They were sold, and after paying to the holders of the prior assignments the indebtedness due to them, the sum of $552,505.95 was paid to the appellees, the assignees of the trust company. When Singerley assigned to them the balance of his interest in the securities, he gave no direction as to the appropriation of their
The assignments of error are all overruled and the judgment is affirmed.