136 Iowa 554 | Iowa | 1907
The defendant was formerly engaged in tbe selling of agricultural implements at Waukon, Iowa. While in this business he took in payment for goods many promissory notes, among which were one made by Frank Russell for $23, and another by one J. W. Russell for $14. The note first named he transferred to one Dean, and the other he deposited as collateral in the Citizens’ Bank of Waukon, as he was in the habit of doing with most of the notes taken by him from his customers. The evidence tends to show that some six months after the date of the said two notes the makers called upon the defendant, who informed them that the notes were in the bank, but that he would receive payment thereof and would subsequently get their paper and deliver it to them. Thereupon Frank Russell paid him the amount of his note in full, and also the amount of another small note which was in fact in the bank, and J. W. Russell paid him $5 to be indorsed upon the note given by him. Defendant admits receiving the money, but testifies that he' paid the same to the bank to be credited upon the debt for which the notes were held as collateral, but neglected to obtain the notes for the makers or to have the payments indorsed thereon. He also swears that he had no recollection of the fact that one of the notes had been turned over to Dean, but supposed that all of the papers were in the bank; and that he received the money in good faith, expecting, as was his custom in such cases, to pay it into the bank and release the notes to that extent. He further says that at this time he was involved in business troubles, and within a few weeks thereafter he was compelled to close business and was adjudged a bankrupt, and that the worry and care incident to these difficulties distracted his mind from his purpose to secure the proper ap-' plication of the moneys collected by him until after the commencement of this prosecution.
The indictment is based solely on the transaction with regard to the note for $23 given by Frank Russell, but the
For the error above pointed out, the cause must be remanded for a new trial.— Reversed.