Scroggin Farms Corp. v. McFadden

WOODROUGH, Circuit Judge.

This action was for the recovery of possession of certain cotton warehouse receipts or for damages for their alleged conversion. The receipts were pledged by cotton producers as collateral to secure loans made available by the Commodity Credit Corporation, an agency of the United States, in accordance with the provisions of the Agricultural Adjustment Act <?f 1938, 7 U.S.C.A. § 1281 et seq. The producer-borrowers sold their equities of redemption to the appellant and subsequently sold them a second time to the appellee McFadden. McFadden, the second purchaser,…