Merchants' Bank of St. Louis v. Harrison

39 Mo. 433
Supreme Court of Missouri·Decided February 15, 1867·Published·Cited by 11 cases

Opinion

Holmes, Judge,

delivered the opinion of the court.

This was an action of ejectment for the possession of a tract of land lying in the county of Livingston. The petition alleged that the plaintiff was a corporation under the laws of the State. The answer denies the material allegations of the petition. Both parties claimed title under Jasper N. Bell, the common grantor. It was amply proved that Jasper N. Bell,, prior to any conveyance to eitheiv party, had had possession of the land claiming title by and for nearly ten years at least. Documentary evidence was offered by the plaintiff to show a complete chain of title from the United States to Jasper N. Bell, but one of the deeds was excluded on the ground of a defective acknowledgment. The notary public who took the acknowledgment described himself in the body of the acknowledgment as a notary public within and for the county of Livingston, but appended to his signature his official character in these words, “Notary Public Howard county.” We are inclined to think that the deed should have been admitted ; but being excluded, there was still evidence enough to show a possession of the land by one claiming title by deed, and there was sufficient prima facie evidence of title to entitle the plaintiff to recover, until a prior or better title should be shown. And further, as both parties claimed title under a common grantor, the title of the ancestor was admitted, and could not be denied in this case. [441] “When both parties claim under the same third person, it is prima facie sufficient to prove a derivation of title from him without proving his title” — 2 Greenl. Ev. § 307.

The answer denied that the plaintiff was a corporation, and this fact was put in issue. To support this issue, the plaintiff read in evidence the act of the Legislature incorporating the bank and prescribing the mode in which it should be organized, and there was ample evidence tending to show that the bank had gone into operation under the act, and to show acts of user. The acts of user which were proved were prima facie evidence under the charter — Ang. on Corp. § 685. No evidence was offered by the defendant to the contrary. We think it was sufficiently proved that the plaintiff was a corporation.

It appeared in evidence that this land was purchased by the bank by way of securing the payment of a debt due from Jasper N. Bell amounting to about $2,400; that the land was worth some $9,500, but was subject to the prior lien of a deed of trust; and that the balance of the purchase money, amounting to about $7,000, was paid to the holder of the deed of trust to discharge this prior encumbrance, and that the land was purchased by the bank for the sole purpose of securing the payment of the debt.

It was objected that this purchase was not authorized by the charter of the bank, and that the deed was therefore null and void. There was no other prohibition on the bank from the purchase of real estate than that contained in the 26th section of the act to regulate banking institutions (Laws of 1856-7,p. 21), which provides that “each bank may hold such real estate as may be required for the convenience and accommodation of said bank and branches, and such as may be conveyed to the same in payment of debts previously contracted in good faith and without a view to the purchase thereof; and also such as may be purchased at sales upon judgments and decrees in favor of the bank, when it shall be purchased in order to secure the debt. But the bank shall as soon as practicable, under the direction of the board, dis[442] pose of all real estate held by it which is not necessary to the transaction of its business.”

It is insisted that this purchase was made on speculation, and not necessarily to secure the payment of a debt previously contracted in good faith and without a view to the purchase thereof. The real value of the property was what it was worth over and above the prior encumbrance, and this does not appear to have been much (if any) more than the amount of the debt due the bank. We do not see that there was any ground for saying that the purchase was not made in good faith and for the purpose of securing the payment of the debt, and we think it came clearly within the power given by the charter.

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Merchants' Bank of St. Louis v. Harrison, 39 Mo. 433 (Mo. 1867).

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