ARGUED AND DETERMINED
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Cnxmn Curr BANK or Das Momns v. Honem and others}
(Circuit Court, S. D. Iowa, CI D. June 4, 1885.)
l Cmvrrmn IVIORTGAGE—DELIVERY—TW0 Ivlorcresoss Exscnrmn on Sams DAY-
Rr-;connino-Praronrrr-Pnnvxous Aonnsmnivr.
When a party, to secure an indorser of his notes, in pursuance of a previous
agreement, executes and files for record a chattel mortgage on his stock in trade,
‘ and at the same time executes another mortgage on the same goods, to secure
a creditor, but does not file it for record until the next day,in order that the in-
dorser may have a first lien on his property, and neiihcr of the mortgagees knows
at the time of the execution of the mortgages, or ut the time of their filing for
record what has been done, but both of them, on learning what has been done,
accept them, the mortgage first recorded will be a Hrst lien on the goods.
In Equity.
W. L. Reed and Goode, Wishard cd Phillips, for complainant.
Nourse at Kctufman and N. B. Raymond, for defendants.
Snnus, J. In the year 1883 Frank L. Hodgin was engaged in the
clothing business at Des Moines, Iowa. In November of that year he
executed upon his stock in trade two mortgages: one to his mother,
Adaline Hodgin, who resided in Ohio; the other to the Capital City
Bank of Des Moines. The indebtedness secured by these mortgages
coming due and remaining unpaid, possession of the stock was taken
under the mortgage to Adaline Hodgin, and thereupon the Capital
City Bank brought this suit, claiming the prior right to and lien upon
the mortgaged property.
The question upon which the rights of the parties depends, is that
of priority. It appears from the evidence that Adaline Hodgin had
indorsed the notes given by F. L. Hodgin to Leon Marks & Co., of r
Cincinnati, for goods purchased of them, and that she had been as-
sured that in case of trouble she should be protected by security against
¥Reported by Robertson Howard, Esq., of the St. Paul bar.
v.24r,no.1-1