Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1901-12-26
FARMERS WIN SUIT.
Supreme Court Aftirms Decision
Judge GIaspeIl in Suit Porter
MeIiCke & Co., VS.. Farmers.
Held That Note is Void Being Entirely
Different From That
Signed.
Defendants Signed Contract Which
Afterward Showed Up As
q Note.

d Note.
Judge Glaspell's decision for the de.
PENDANTS in the case Of Porter Melicke
s. Co., appellants, VS.. L. M. Hardy, H.
Sheard, 7. Sheard, j. G. Wylder, Even
A. Jones, T. Thorstenson, Ed. Thors-
tenson, Giles A. Wylder, j. Palmer
and Orville G.. Matthias, respondents,
has been affirmed by the state supreme
court. The courts syllabus is as fol-
lows:
'"The material alteration of a writ.
ten contract by a party entitled to a
benefit hereunder, or with. with his
consent, extinguishes all the execu-
tory obligations of the contract in his
favor as against parties who do not
consent to the alteration, and where
the instrument SO altered is conveyed
by suchCalteration into negotiable
promissory note, such note is void
even in the hands of a boLa tide
holder.
Gan apparent exception to the fore
going rule exists in cases where par
ties sign skeleton notes, or notes not
entirely filled out. In such cases the
makers are sometimes held liable up
on the completed instruments in the
hands of good faith purchasers, upon
the ground that by signing the same
in blank, they impliedly authorized
the holder to ill out the blanks in
harmony with the general purpose of
the instrument, and upon the further
ground that the act of signing in
blank was gross negligence, amount
ing to an estoppel as against a bona
tide holder.
'The defendants who are farmers,
,withra view to forming al association
to purchase stallion from one E..
Ooeper, ind at the request Of the late
ter's agent, signed contract wherein
they agreed to associate themselves
together for that purpose. This con-
tract was contained in bound book
and covered two pages. Portions of
the contract were not filled out when
signed. That portion on the lower
pages was in the form Of a skeleton
note, but was in fact an integral part
of the contract. This portion was
feloniously severed by Cooper's agent
and converted into a negotiable prom
issory note and the same was trans
ferred to the plaintiff in due course.
Defendants read the contract before
signing it and understood its general
purpose.
sit is held: That the note is void,
and upon the facts of this case author
ity to fill out the blanks on the lower
page and detach the same from the
rest of the contract, thereby creating
an entirely different instrument from
that signed, cannot be implied.
"Held, further, that the defendants
were not negligent in signing said
instrument upon the facts set forth
in the opinion and are not therefore
stopped from asserting that the note
in suit is not their contract"
George A. Bangs and Cochrane 4
Corliss of Grand Forks for plaintiffs
and Fredrus Baldwin Of Jamestown
for defendants appeared in the case.
From statement of facts in the
case it appears that r. A. Whitehead,
Cooper's agent, had a lumber OF
blooded stations which he desired to
sell and desired to torn a stock COM
pany for the purpose of selling one of
these animals at $1,000. Whitehead
requested the defendant farmers to
sign, stating that they desired to form
such stock company for the purpose
named. 1t was agreed that the farm.
ers were to give three notes, two of
S7OO and one of $500, if on examina
tion they we're satisfied with the
horse. The defendants signed a con-
tract agreeing to associate themselves
for the purpose of buying the stallion
but in doing SO signed blank form OF
a note cleverly folded on perforated
line by Whitehead. Thereafter White
head, without the knowledge or con-
sent of the farmers, tore of the lower
page containing the signatures and
blank note, filled in the blanks so as to
form the note sued upon. The note
was transferred to the plaintiffs and
suit was commenced when the defend.
ants refused to pay. The first trial
occurred In chambers before Judge
Glaspell who decided in favor Of the