The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-11-04
STATE SUPREME COURT.
Important Chatte1 Mortgage Decision
New Rules Adopted.

OLYMPIA, Nov. 3]Special. THE supreme
court yesterday filed an opinion by Judge Hoyt in
the case of Reuben W. Warren VS. his creditors
ct al, an appeal from Thurston county. The
decree OF the court below, holding certain chat
tel mortgages to be fraudulent, is set aside
The court does not decide an interesting
question discussed in the case, as to the
validity OF chattel mortgages given on stocks Of
merchandise which the mortgagor Is allowed to
retain possession of and sell for his own benefit
Referring to the subject the court says:
The sole question involved in this case Is as
to the validity of two certain mortgages made
by Reuben w. Warren on his stock of merchan-
disc situated in his store at Buco1a, in this
county. On this question counsel for the re-
s3ectiye parties have entered into a general dis
cussion as to the construction TO be given, by
the courts OF this state, TO ehattel mortgages, by
the terms OF which the mortgagors are allowed
in the ordinary course OF business, for the bene-
lit OF the business or OF the mOrtga-
gor. This question has been carefully
view the record the above stated question is not
at all involved in the decision of this case, and
whether or not this court would feel bound to
follow the harsh decision in the of Vine
burgh vs.. Schser, Wash. Ter, 32S, which adopted
the rule that mortgages OF the kind mentioned
were couclus yeIy fraudulent, or that OF other
states which have adopted the rule that they
are prima facie valid, or the more equitable and
medium one that they are presumably iraudu-
lent, but that the good faith OF the transaction
Nneu clearly SHOWN sLGtt nave FORCE, are cues
tions too important to be decided until case
arises which sQuarely presents such an issue.
In the case al bar the proof showed that the
mortgagor was authorized by oral contracts at
the time the mortgages were executed 10 sell the
property and apply the proceeds to the payment
of the mortgages in the order Of their priority,
The court says that there is no dispute that
when mortgages are made upon such condition
in good faith they are valid and binding on all
parties. In this case no proof was presented
which would warrant the court IN finding that
the mortgages were not made and accepted in
the most perfect good faith. The effect of the
decision is that the claims OF the mortgages
must be paid before those OF the attaching cred
itors.
The petition for the rehearing in the case OF
Pierce VS.. Kennedy was denied. The court,
however. changes its former order which di-
rected dismissal OF the action, aud ii remands
the cause with directions TO overrule the de-
murrer 10 the answer and proceed with the
trial, for the that sppellees state in their
petition that they had no intention of bringing
any action except for land above high tide. and
the complaint may fairly be construed to sup
port the assertion. The original decision was
based upon the supposition that the improve
menJs OF appellants complained OF were below
high water mark.
The appeal OF the Chehalis Flums and Aoue-
duet Co. vs. Remnant, from Lewis, was dis.
missed, as no transcript has been fled
The case of Lomer vs. Ralph, from Pierce,
was argued. and the three Cases of Cline va Ia
coma stove Co, Harmon { Co. and Burrichter.
also from Pierce, we've submitted on briefs.
The court today adopted new rules which
will so into effect November L.