Headley v. Post

The opinion of the court was delivered by

Dawson, J.:

This was an action by one group of guarantors and indemnitors against another group, both of which by separate instruments were pledged to a Kansas City bank to save it harmless as to all notes, drafts, bills of exchange or acceptance which it might acquire by purchase or discount from a bank in Smith Center in which the rival litigants were interested.

In 1919, the Farmers State Bank of Smith Center and the Live Stock State Bank of Kansas City, Mo., were going concerns, each doing a general banking business, the latter being the Kansas City…