Bearden v. Carter Merchandise Co.

In June, 1893, Barnes was a merchant in Gainesville, Georgia, and owned a stock of goods. He executed a mortgage on the goods to Kiser, Moore, Draper & Company for $4,145.38. In December of the same year, Barnes, with the consent of the mortgagees, sold his stock of goods to the Carter Merchandise Company for $2,048.08. It was agreed among the parties that the proceeds of this sale should be paid to the mortgagees, and that they would then transfer the mortgage to the Carter Merchandise Co., the proceeds of the sale being placed as a credit upon the mortgage. This was done. After the sale,…