The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 55
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GEORGE V. OSCAR SMITH & SONS CO.
be in violation of their own statutes." International Harvester Co. v. MeAdam,
142 Wis. 114, 124 N. W. 1042, 26 L. R. A. (N. S.) 774, 20 Ann. Cas. 614.
Application of the Facts.
An effort will be made to apply the facts of this case to the law as
announced in the foregoing propositions. V. L. Crawford, a citizen
of Mississippi, was conducting a bleachery business at Meridian, in
that state. The Smith Company, doing business in Pennsylvania under
a New York charter, contracted to furnish linters to munition makers,
and undertook to supply the linters through Crawford. Crawford's
facilities being inadequate, the Smith Company made loans to him
to enable him to carry out the contract with them. In December, 1914,
while owing the Smith Company about $11,000 unsecured, Crawford
applied for an additional loan of $10,000, offering his plant as security.
During the course of negotiations, carried on by wire and mail, the ap-
plication was increased to $25,000. As a part of these negotiations,
Crawford offered reduction in the prices at which he was to furnish
linters, one of these proposed reductions being in consideration, not
alone of the loan, but on account of delays which had taken place in
deliveries. Some money was paid as the negotiations took place, and,
before their consummation, officers of the Smith Company went to
Meridian, investigated the property offered as security, and determined
to make the loan, and then made a statement to that effect to Craw-
ford. Crawford was authorized to execute notes and a mortgage upon
the property to be taken as security, the instruments being prepared
by attorneys for the Smith Company in Meridian. The notes and deed
of trust having been executed, they were sent through the mail by the
bank at Meridian, with draft attached for the balance unpaid of the
amount loaned, $9,700. The draft was paid and the notes and deed
of trust taken up by the Smith Company at Philadelphia.
The primary question in determining the law to which the contract
is referable is where the contract was made.
The making of the contract consisted of a number of elements, and
these elements did not all have the same place. In the negotiations
by mail, that which was done by Crawford had its locus at Meridian;
that which was done by the Smith Company had Philadelphia for its
place. The verbal negotiations took place at Meridian; the represen-
tatives of the company there determined to make the loan. The formal
action of the Smith Company was at Philadelphia. The deed of trust
was executed at Meridian; the property affected by the deed of trust
was in Mississippi. The money was paid by drafts which were placed
in bank in Meridian by Crawford, which drafts were transmitted
through the mails to Philadelphia to another bank, where they were
paid, and the proceeds paid over to Crawford in Meridian. The notes
were executed in Meridian, transmitted by mail to Philadelphia, and
there retained by the Smith Company. The deed of trust was trans-
mitted by mail to Philadelphia, and returned by mail to Meridian for
record. It would not be possible to name any one state in which this
transaction took place.
If it be possible, under the facts stated, to determine, as matter of
law, by the application of technical legal presumption, the place of the
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The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/70/: accessed April 30, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.