Owens v. William H. Banks Warehouses, Inc.

RUSSELL, Circuit Judge.

On July 2, 1947, William H. Banks Warehouses, Inc. and Mallory Canning Company, Inc., of Grapeland, Texas, entered into a contract, under which they operated, as described by the Court 1 below, in the following manner:

“Usually merchandise is pledged either by chattel mortgage or warehouse receipt. Normally, in order to get a bonded warehouse receipt, the merchandise is stored in a public warehouse. This is expensive, so Banks, a warehousing concern, usually takes a lease on the building where the merchandise is stored, takes possession of the building, posts signs and…