First National Bank v. Morgan

This is an action to recover upon a promissory note given by defendants to the Cosmopolitan Five Cents to One Dollar Stores, Inc., in payment for shares of stock of the corporation which were not to be issued or delivered until the note was paid. The action was brought by the First National bank in Salem, which took the note as collateral security for loans made to the original payee. The trial resulted in a directed verdict and judgment in favor of the bank from which judgment defendants have appealed.

The note reads as follows:

“995.00 McMinnville, Oregon, Mar. 13,1925.

One year, after date,…