Funsten v. Snyder

14 Mo. App. 446, 1883 Mo. App. LEXIS 73
Missouri Court of Appeals·Decided December 4, 1883·Published·Cited by 1 cases

Opinion

Lewis, P. J.,

delivered the opinion of the court.

The controversy in this cause turns upon the ownership of a draft drawn by M. L. Cohn on Adler, Goldman & Co. for $965.30, in favor of A. S. Johnson, dated March 6,1882, and made payable at sight. The draft was indorsed by the payee to the order of J. B. Snyder, cashier, and mailed on March 7th at Newport, Arkansas, to the banking house of N. C. Snyder, the present interpleader, at Grenada, Mississippi. If, in this transaction, the banker became a mere collecting agent for Johnson, and was to hold the proceeds of the draft when collected for Johnson’s credit, the judgment rendered by the court below in favor of the plaintiffs .was proper, and should not be disturbed. But if the transaction involved a sale of the draft by Johnson and a purchase thereof by Snyder, then the judgment should be against the plaintiffs and in favor of the interpleader. The issue arises upon certain attachment and garnishment proceedings, which need not be described in detail.

The testimony tended to show that there had been a long course of previous dealings between Johnson and Snyder in banking matters. Johnson had, on many occasions, sent [447] drafts to the banker, who, immediately on their receipt, entered their amounts to Johnson’s credit on current account. Until the present instance every such draft was collected in due course. Johnson’s letter enclosing the draft in controversy contained also two smaller drafts, or checks, with the advice that the writer had, on the same day, drawn on the banker, in favor of W. F. Johnson, for $2,499.70, and a request that this last be paid. A letter was received by Snyder, on the same day with the other, purporting to be from W. F. Johnson, and containing the last mentioned draft, with a request that it be passed to the writer’s credit, subject to his draft. Entries were made on the banker’s books in accordance with this correspondence. The account of A. S. Johnson was debited by the amount of the large draft, and an account was opened for the like amount in favor of W. F. Johnson, whose checks against the same in various sums were afterwards paid; but not to an extent sufficient to cover the amount of the draft in controversy, whose payment was refused by the drawer (failing acceptance and payment by the drawees) because of the garnishment. Both Snyder and his cashier testified, in effect, that they treated as a purchase the acquisition of the draft in controversy, and that they did not consider it as received for collection only.

There was testimony tending to show that when A. S. Johnson mailed the draft in controversy he was in failing circumstances, and that all the writings and signatures which purported to be those of W. F. Johnson were in fact written by A. S. Johnson; that W. F. Johnson was a younger brother, of irregular habits, and without means. Notwithstanding this testimony, it was conceded in the trial — and the court so told the jury — that no issue was to be considered as to whether the interpleader was assisting A. S. Johnson to defraud his creditors, and that the interpleader’s alleged title to the draft was not attacked on [448] the ground of any fraud practiced or attempted upon creditors by either Johnson or the interpleader.

The court permitted the plaintiffs to introduce, against the interpleader’s objections, the following testimony of William W. Smith. (The conversation referred to occurred in Newport Arkansas) : “I saw A. S. Johnson with this draft the night he left here, and I think he left here on the night of the 7th of March. It was the night after he sold out here. I was down in his room talking to him, and he took the draft out. This was done just a little while before'or after seven o’clock p. m., and just before the train was due on which he went off. He indorsed the draft, or wrote across the back of it, that evening at his room at White Hotel. * * * He told me he had wrote to Jake Snyder, whose father had a bank in which Jake was, at Grenada, Miss., and told Jake to take his (Johnson’s) money out of the bank and balance his account, and to keep what balance was due him, so that his creditors could not attach or garnishee the bank for what he owed, or for his debts. He said that his cousin got married one week, and broke the next, and that Jake Snyder had done this for him. He said that he now had that fixed, but must go home and fix what real estate he had, so his creditors could not get hold of it.”

Free access — add to your briefcase to read the full text and ask questions with AI

Funsten v. Snyder, 14 Mo. App. 446, 1883 Mo. App. LEXIS 73 (Mo. Ct. App. 1883).

14 Mo. App. 446 (Funsten v. Snyder) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Weller v. Weaver
100 S.W.2d 594 (Missouri Court of Appeals, 1936)