Mechanics' Banking Ass'n v. New York & Saugerties White Lead Co.
New York Court of Appeals
Appeal from the Supreme Court. The action was on a promissory note for $1,250, made by one James B. Townsend, payable to the order of the New York & Saugerties White Lead Company, and indorsed by -that company, and by the Spring Yalley Shot and Lead Company, by James McCullogh, as president of each of said companies. The note was made by Townsend, and indorsed by the appellant, for the accommodation of the Spring Yalley Shot and Lead Company.
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Appeal from the Supreme Court. The action was on a promissory note for $1,250, made by one James B. Townsend, payable to the order of the New York & Saugerties White Lead Company, and indorsed by -that company, and by the Spring Yalley Shot and Lead Company, by James McCullogh, as president of each of said companies. The note was made by Townsend, and indorsed by the appellant, for the accommodation of the Spring Yalley Shot and Lead Company. McCullogh was not only the president, but also the financial officer of both these companies. He had previously made and indorsed notes in behalf of…
1Opinion of the CourtPobteb, J.
There was nothing on the face of the note to indicate that it was not business paper. The appellant was the payee, and the indorsement was made by the proper officer, and in the usual form. The respondent discounted the note in good faith, and in the usual course of business. The bank had no notice that it was made or indorsed for the accommodation of the borrower, and the defense was, therefore, properly overruled. (Bank of Genesee v. Patchin Bank, 13 N. Y., 315; 19 id., 312; Farmers’ & Mechanics’ Bank v. Butchers’ & Drovers’ Bank, 16 id., 129; Olcott v. Tioga Railroad Company, 27 id., 546;…
2Cited by15 opinions
- Jacobus v. . Jamestown Mantel Co.New York Court of Appeals · 1914
- Farmers' Nat. Bank v. Sutton Manuf'g Co.Court of Appeals for the Sixth Circuit · 1892
- Tod v. Kentucky Union Land Co.U.S. Circuit Court for the District of Kentucky · 1893
- Scherer v. EverestCourt of Appeals for the Eighth Circuit · 1909
- In re John B. Rose Co.Court of Appeals for the Second Circuit · 1921
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