First National Bank & Trust Co. v. Morganroth

300 P. 1061, 133 Kan. 474, 1931 Kan. LEXIS 268
CourtSupreme Court of Kansas
DecidedJuly 3, 1931
DocketNo. 29,995
StatusPublished
Cited by1 cases

This text of 300 P. 1061 (First National Bank & Trust Co. v. Morganroth) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank & Trust Co. v. Morganroth, 300 P. 1061, 133 Kan. 474, 1931 Kan. LEXIS 268 (kan 1931).

Opinion

The opinion of the court was delivered by

Sloan, J.:

This is an action in replevin, in which six suits were consolidated and tried as one case. The defendants prevailed, and plaintiff appeals.

[475]*475The appellees, who are Osage county farmers, purchased in the aggregate 502 head of cattle from Omer Power, which were, at the time of the purchase, in a pasture on the Moore ranch in Oklahoma. The principal question in the case is whether Power acquired a good title to the cattle in question from Jesse C. Moore.

For many years prior to 1928 Jesse C. Moore owned and operated a cattle ranch near Sulphur, Okla. The ranch consisted of about 15,000 acres of land, which was used as a pasture. Some of the pastures were in Pontotoc county, others in Johnston county, and still others in Murray county. Pontotoc county on the east and Murray county on the west had a common boundary north of Johnston county, which was bounded by Pontotoc county on the north and Murray county on the west.

Moore was an experienced ranchman and, before the crash in his fortunes which occurred shortly before this litigation, his borrowing line of credit frequently ran above $250,000.

It was Moore's practice during the fall of each year to purchase cattle in Texas, Arkansas and other places and ship them to his ranch. In the fall of 1927 he bought in west Texas, and shipped to his ranch, about 600 white-faced cows and about 1,600 white-faced steer calves, which were on the ranch in the summer of 1928.

In the summer of 1928 Moore employed R. C. Ridley, an experienced cattle man, to purchase for him in Texas between 2,000 and 3,000 head of cattle. The cattle so purchased were shipped to the ranch between the 13th and 23d of October, 1928. There is a conflict in the testimony as to the number of cattle that were taken to the ranch. One witness estimates 1,500, while another says 2,800. The cattle were unloaded at Scullin, a station near the ranch, in Murray county, and from there they were taken to the ranch headquarters,. dehorned, branded and then distributed to the various pastures. The length of time the cattle remained in each pasture is not definitely established, and the evidence is indefinite as to the number of cattle that were on the ranch.

About this time Moore applied to the appellants for a loan with which to pay for the cattle as they were delivered. The application was at first rejected and on October 30, 1929, he succeeded in procuring a loan from the Stock Yards Loan Company, of Kansas City, in the amount of $62,817.50, and to secure the payment thereof he executed a chattel mortgage, which was filed in Johnston county November 5,1928, upon certain cattle described as follows:

[476]*476“Fifteen hundred ten (1,510) head of Hereford cattle, more particularly described as:
1,424 hd. coming 1 yr. old extra high-grade steers.
86 hd. coming 1 yr. old extra high-grade heifers.
1,510 hd.
“Branded: - on left thigh. Located.on my ranch 2Yz miles south of Scullin, in Johnston county, Oklahoma.”

On November 14, 1928, Moore, who was then indebted to the appellants in the sum of $40,000, which amount he represented had been used in the purchase of the cattle shipped from Texas, executed a chattel mortgage to secure the payment of said indebtedness, which was filed in Pontotoc county, on November 15, 1928, upon certain cattle described as follows:

“1,035 head of white-face yearlings, weighing at this time about 500 lbs. each, branded-on left thigh, bought in Ford and Motley counties, Texas, recently, high-grade white-face steers; will be dehorned; value $54,337.50.
“(Including also sufficient feed and grass to properly care for the above cattle during the life of this loan.)
“Now located on the Jesse C. Moore ranch, 3 miles southeast of Hiekory, Pontotoc county, Oklahoma.”

The mortgage was written at appellant’s bank and no inspection was made of the cattle until May, 1929, when Mr. Teter, an officer of the bank, visited the ranch and found cattle which appeared to meet the requirements of the mortgage, but Moore represented that the cattle'shown to Teter were in Pontotoc county, while in fact they were in Johnston and Murray counties. By September 11, 1929, the indebtedness had increased to $52,500 on account of funds advanced by appellant to Moore for feed. Moore, at that time, represented to the appellant that -five of the cattle described in the mortgage had died, and that he intended to take 600 head to Carter county and retain 440 head in Pontotoc county. Accordingly, new notes and mortgages were executed on September 11, 1929. To secure the payment of a note in the amount of $22,500, a chattel mortgage was executed, which was filed in Pontotoc county September 18, 1929, upon certain cattle described as follows:

“430 head of coming 2-year-old white-faced steers, being the front end off of 1,030 steers branded with a stripe (-) on left thigh, bought in Ford and Motley counties, Texas, in 1928; a good grade of white-faced cattle dehorned; value, $70 a head.
“Including also sufficient grass and feed to properly care for the above cattle during the life of this loan.
[477]*477“Now located on the Jesse C. Moore ranch, 3 miles northeast of Scullin, Pontotoc county, Oklahoma.”

To secure the payment of a note in the amount of $30,000 a chattel mortgage was executed, which was filed in Carter county, September 13,1929, upon certain cattle described as follows:

“600 head of white-faced steers, coming twos, bought in Ford and Motley counties, Texas, 1928, branded with a stripe (-) on left thigh, a high grade of white-faced dehorned steers. Value, $39,000.
“Including also sufficient grass and feed to properly care for the above cattle during the life of this loan.
“Now located on land leased by jesse C. Moore, 4 or 5 miles northeast of Berwyn, Carter county, Oklahoma.”

The appellant knew at the time the mortgage was taken on the 600 head of cattle that they were not situated in Carter county, but were in Johnston county, and they were never taken to Carter county. On the execution of these mortgages last described the mortgage in the amount of $40,000 was released of record.

In April, 1929, the Stock Yards Loan Company learned that Moore was in financial trouble and made an investigation of their mortgage security. Moore admitted a large shortage of cattle. The inspection showed that there was on the ranch at that time about 6,000 head of cattle. The Stock Yards Loan Company, through its agent, found the cattle covered by their mortgage in Johnston county, where the mortgage was filed. They took charge of the cattle, sorted and shipped them when marketable, reducing their loan to $35,000.

On September 5,1929, Moore, with the assistance of a representative of the Stock Yards Loan Company, sold to Omer Power 600 head of cattle described in a bill of sale, as follows:

“Six hundred (600) head óf dehorned white-faced one-year-old past steer cattle branded-low down on left thigh.

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Bluebook (online)
300 P. 1061, 133 Kan. 474, 1931 Kan. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-trust-co-v-morganroth-kan-1931.