C. M. Keys & Co. v. First National Bank of Claremore

1908 OK 173, 104 P. 346, 22 Okla. 174, 1908 Okla. LEXIS 18
CourtSupreme Court of Oklahoma
DecidedSeptember 10, 1908
DocketNos. 853 and 866, Ind. T.
StatusPublished
Cited by5 cases

This text of 1908 OK 173 (C. M. Keys & Co. v. First National Bank of Claremore) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C. M. Keys & Co. v. First National Bank of Claremore, 1908 OK 173, 104 P. 346, 22 Okla. 174, 1908 Okla. LEXIS 18 (Okla. 1908).

Opinions

Kane, J.

This suit was commenced on the the 20th day of July, 1905, by the appellee, First National Bank of Claremore, by filing its complaint at law in the United States Court for the Northern District of the Indian Territory, at Yinita^ against Wat Mayes, alleging that the defendant, Wat Mayes, was indebted to the plaintiff in the sum of $4,386.09 on one certain promissory note, and the sum of $371.98 upon a second promissory note, and the sum of $111.82 on account. On the same day it filed an affidavit in attachment, and caused an order of attachment to be issued against the property of Wat Mayes. After the suit was commenced and attachment levied, numerous creditors of Wat Mayes made application to the court for leave to interplead and set up their respective claims to priority in the distribution of the estate of Mr. Mayes, who, at that time, was hopelessly insolvent. The court permitted the creditors to interplead, and the cause was referred to a master in chancery to make findings of fact and conclusions of law/ and report the same to the court. On the 23rd day of August the plaintiff and the various interpleaders made application to the court for the appointment of a receiver to take charge of and dispose of the attached property, and-on the same day the court granted their prayer and appointed G-. W. Mayes receiver, who afterwards qualified and took charge of and disposed of the attached property, and turned the proceeds thereof, amounting to $11,234.47, into court.- In due time the master made his report and the court entered a decree in accordance with the recommendations therein contained, and ordered that out-of the money received from the sale of the-attached property there be-paid by *176 the receiver all costs, including the ■master’s fee of $350.00, and that out of the remainder be paid the respective claims of the parties to the suit in full as far as the proceeds would extend, in the following order:

1. To First National Bank of Yinita, its claim, amounting to $4,144.42.

2. To First National Bank of Claremore, its claim, amounting to $5,413.99. ' •

3. To Citizens’ Bank of Pryor Creek, its claim, amounting to $2-083. 33.

4. To J. C. Hogan, his claim, amounting to $6,801.96.

5. To Mary D. Mayes, her- claim, amounting- to $1,802.88.

6. To Yinita National Bank, its claim, amounting to $809.77.

7. To C. M. Keys and Company and Stock Yards Bank, their claim, amounting to $17,245.31. .

From this judgment Yinita National Bank, and C. M. Keys and Company and Stock Yards Bank, prosecuted their separate appeals to the Court of Appeals of the Indian Territory, which appeals were consolidated in that court, and the cause came to this court under the terms of the Enabling Act and the schedule to the Constitution.

The grounds upon which the Vinita National Bank bases its right to a reversal of the judgment of the court below, are: That Wat Mayes, the original defendant, on the 15th day of December, 1899, was the owner of and in possession of a large herd of cattle, that were unincumbered. That in order to obtain credit at the Yinita National Bank for the sum of $4,500.00, he executed on said date his note for that sum, due 6 months after date, and as security for the payment of said note he also executed a chattel mortgage on said cattle, which said mortgage was by the First National Bank filed for record with the recorder of the Northern district of the Indian Territory. That said mortgage so filed was renewed from year to year'by renewal affidavits filed in accordance with the provisions of the Statutes of Arkansas in force in the *177 Indian Territory. That the property taken under tbe writ of attachment consisted of part of the cattle included in said mortgage, and that said mortgage was a valid lien against said cattle at the time the writ of attachment was issued and levied.

C. M. Keys and Company and Stock Yords Bank base their right to reversal upon the grounds that on the 29th day of October, 1901, Wat Mayes, the original defendant herein, made, executed and delivered to said O. M. Keys and Company his promissory note for $34,804.04. payable 6 months after date, and to secure the payment of said note said defendant on said date made, executed and delivered to said C. M. Keys and Company a chattel mortgage upon 2835 head of mixed cattle and their increase and additions thereto, kept and located in the Northern district of the Indian Territory, about 3 miles southeast of Pryor Creek in said Territory. That on the 31st day of October,-1901, said C. M. Keys and Company filed said chattel mortgage for record in the office of the clerk of the United States Court, then ex ofjiico recorder for the Northern district of the Indian Territory, at Muskogee? which mortgage was duly recorded in said office bjr the clerk. That said mortgage covered all the property taken under the writ of attachment. That after the date of said notes and before the. same become due the said C. M. Keys and Company, for a valuable consideration, sold and transferred said note to-the Stock Yards Bank by indorsement and assigned and transferred tc- the Stock Yards Bank said chattel mortgage given by said defendant to secure said note. That when said note became due said defendant, Wat Mayes, was unable to pay the same in full, but made settlement by paying part of the indebtedness recited in said note and by giving his note for the remainder thereof, and that from time to time thereafter said defendant, Wat Mayes, 'made various payments upon said note, until on, to wit, the 1st day of March, 1905, he made, executed, and delivered to said C. M. Keys and Company one certain promissory note for $12,026.74, payable to the order of said C. M. Keys and Company 6 months after *178 date at National Stock Yards Bank. That before said last named note became due, for a valuable consideration, and in due course of business, said C. M. Keys and Company indorsed said note to said Stock Yards Bank which notes were all covered in said $34,-804.04 note secured by said chattel mortgage. That on the. day of February, 1905, said defendant, Wat Mayes, made, executed, and delivered to said C. M. Keys and Company his promissory note ■for $500.00. That from time to time various payments were made upon said notes, but after deducting all of said- payments so made by said defendant, a balance of $15,288.69 was still due upon said notes.

The foregoing statement of facts is in practical harmom'- with the undisputed evidence. Counsel for all the parties filing briefs admit that the main questions of law involved are:

1. Was it necessary for appellants, under chap. 888, U. S. Stat. at Large, approved May 27, 1902, which divided the Northern, district of the Indian Territory into two parts, making the office .of the clerk of the United States Court at Vinita, Indian Territory, the recording office for the Northern district, to record their mortgages at Vinita, when they had already filed or recorded them in the office of the clerk at Muskogee?

2. Was it necessary, in order to preserve their liens upon the cattle described in their mortgages filed and recorded at Muskogee, to have such mortgages indexed at Pryor Creek, Indian Territory, under chap. 707, U. S. Stat. at Large, approved February 19, 1903?

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Cite This Page — Counsel Stack

Bluebook (online)
1908 OK 173, 104 P. 346, 22 Okla. 174, 1908 Okla. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-m-keys-co-v-first-national-bank-of-claremore-okla-1908.