Tagus Ranch Co. v. First National Bank

A. A. Reed and Laura J. Reed were husband and wife. He operated a small sawmill in the mountains manufacturing shook and tray material. In July, 1932, he borrowed $600 from the defendant on his note and used the same to purchase a tractor and other machinery from a garage for use in connection with the sawmill. Apparently the bank acquired the legal title to this machinery from the garage and there is evidence that the garage took back the machinery from Reed, although the cashier of the bank testified that the bank never received it. In April, 1933, Reed entered into a contract with the…