89 Iowa 692 | Iowa | 1894
For some years before August, 1890, a copartnership known as Rosenbaum Brothers was engaged in the commission business at Chicago. On the first day of that month the copartners and some of their employees organized a corporation under the same name, which succeeded to the business of the firm, and is the plaintiff. During several years prior'to April, 1888, the defendant Horton was engaged in dealing in lumber, coal, grains and hay at Pomeroy, and at times shipped grain and hay to Rosenbaum Brothers. In the month last named Horton and one R. C. Brownell, as
There is. some claim made by the appellee that the firm of Horton & Kenyon was engaged in the business of dealing regularly in grain. Their books show a grain account, and that money of the- bank was paid out for grain. But we are satisfied that Horton alone was concerned in the grain business, and that the money paid for grain was for his benefit. The flax seed and oats shipped to the plaintiff were obtained by the bank of Smith & Son in the following manner: They owed a machine company about seven hundred dollars, and the bank about nine hundred dollars. The bank had guaranteed the payment of the claim of the machine company, and the flax seed and oats were taken to apply in payment of the two claims. The transaction was not a usual one with the bank, but was necessary for it to secure its claim and the claim of the machine company. It does not require any argument to show, that the bank was authorized to secure itself against loss by taking the property in question, and that it had
F. A. Kenyon, after he acquired the ownership of the bank, conducted its business under the names Pomeroy Exchange Bank and Horton & Kenyon, and, in his correspondence with the plaintiff, used stationery prepared for his predecessors, on which those names were printed. It is true that over those names were stamped the words, “F. A. Kenyon, Cashier.” One of the drafts was signed by him, without the addition of the word “cashier,” and at least one of the shipments was made in his own name, but he informed the plaintiff that all shipments were for the bank, and that he intended to sign the drafts as cashier; and, relying upon those statements, the plaintiff kept its account in the name of Pomeroy Exchange Bank. Had the plaintiff inquired in regard to the stamping on the letter’ heads, it would have learned that F. A. Kenyon was in fact the cashier of the bank; and further inquiry would have developed the fact that the drafts and shipments were all on account of the bank. There was nothing in any of the circumstances on which Horton relies to charge the plaintiff with notice of the change in the ownership of the bank which should be treated as having that effect. He does not claim that he sent any notice of the change to the
A motion of the appellee to dismiss the appeal in view of the conclusion reached on the merits we find unnecessary to determine. It is sufficient to say that we have examined the entire record with that care which the importance of the questions involved demands, and find no error prejudicial to the appellant.
The judgment of the district court is affirmed.