The Federal Reporter (Annotated), Volume 174: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. January-March, 1910. Page: 23
The following text was automatically extracted from the image on this page using optical character recognition software:
NATIONAL BANK OF COMMERCE V. ROCKEFELLER. 23
5. APPEAL AND EBBRo (I 169*)-GOUNDS OF REVIEW--NECESSITY OF PRESENTA-
TION IN LOWEB COUBT-EQUITY CAUSES.
In an equity case, which is tried on appeal de novo, it is not necessary
that every reason for or against a decretal order should be presented to
the trial court; but if the pleadings warrant the contention, and there be
an assignment of error warranting its consideration, it is the duty of the
appellate court to decide it.
[Ed. Note.-For other cases, see Appeal and Error, Dec. Dig. I 160.*]
6. GUARANTY ( 36*)-CONSRUCTION OF CONTRACT-GUARANTY OF "DEBTS."
A contract of guaranty is to be strictly construed, and a guaranty exe-
cuted to a bank of the payment of any "debt" which a corporation may
"contract or become liable for to said bank" cannot be enlarged to render
the guarantor liable on guaranties by the corporation of collateral notes
pledged by it to the bank, which guaranties did not constitute debts of
the corporation, but were merely executory contracts, on which its lia-
bility was contingent.
[Ed. Note.-For other cases, see Guaranty, Cent. Dig. 5 38; Dec. Dig.
For other definitions, see Words and Phrases, vol. 2, pp. 1864-1886;
vol. 8, p. 7628.]
Appeal from the Circuit Court of the United States for the West-
ern District of Missouri.
Suit in equity by Frank Rockefeller against the National Bank of
Commerce of Kansas City, Mo., and others. Decree for complainant,
and defendant bank appeals. Modified and affirmed.
This was a suit in equity, brought by Frank Rockefeller against the National
Bank of Commerce of Kansas City, to secure the cancellation and surrender
of a certain promissory note, dated August 16, 1901, for $36,229.05 (hereafter
referred to as the $36,000 note), executed and delivered by him to the bank,
and to secure the delivery to him of certain notes secured by chattel mort-
gages which the bank had taken from the Siegel-Sanders Live Stock Commis-
sion Company, a corporation, as collateral security for the payment of debts
due it from that company, and which Rockefeller claimed to have paid, and
therefore to be entitled to be subrogated to the rights of the bank with respect
to them. The Circuit Court entered a decree in favor of complainant, both
for the cancellation of the note, and subrogating him to the rights of the bank
to the collateral notes and mortgages as claimed. The bank appeals.
Rockefeller was a stockholder and director in the commission company,
whose business consisted of buying and selling live stock on commission at
Kansas City, Mo., and loaning money on cattle, taking notes secured by chattel
mortgages to evidence the loans. He lived in Cleveland, Ohio, and had not, prior
to the transactions involved in this suit, taken any active part in the conduct
of the business of the commission company. That was left to Frank Siegel,
the president, and R. D. Swain, the secretary and treasurer. The company, not
having sufficient capital to carry on business of the magnitude desired by its
officers, attempted to borrow money from banking institutions for that pur-
pose; but the banks exacted as a condition to such accommodations the per-
sonal guaranty of the officers of the company and of Rockefeller that its debts
should be paid. One of these banks was the defendant the National Bank of
Commerce, and the guaranty exacted by it and executed by Rockefeller and
others was in the following words:
"For a valuable consideration to us in hand paid by National Bank of Com-
merce of Kansas City, Missouri, we, the undersigned, do hereby agree to make
and guarantee to the National Bank of Commerce of Kansas City, Missouri,
any and all debts which the Siegel-Sanders Live Stock Commission Company,
a corporation doing business in Kansas City, Missouri, may from time to time
contract or become liable for to said bank, however said debts may be con-
tracted or evidenced. This guaranty shall be an open one and cover debts
*For other cases see same topic & I NUMBER in Dec. & Am. Digs. 1907 to date, & Rep'r Indexes
Here’s what’s next.
This document can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Legislative Document.
The Federal Reporter (Annotated), Volume 174: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. January-March, 1910., legislative document, 1910; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38220/m1/35/: accessed December 14, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.