Daily capital journal. (Salem, Oregon) 1903-1919, 1911-04-25
Gray V. Fankhauser, ct al, Marion
County.

County.
Chas. A. Gray, respondent, V. C. X.
Fankhauser, appellant, Capital Ma
tional Bank, defendant. Appeal from
the circuit court for Marion county.
The Hon. VIM. Galloway, judge. Ar
gued and submitted April 3, 1911.
John H. McNary, and Charles L.
McNary, on brieD for respondent.
Geo. G. Bingham and Civilians,
Wood & Lithicum, on brief) for ap-
pellant Mcbride, j. Modified.
This is a suit to restrain the Cap
ital National Bank Of Salem from
transferring upon its books and re-
turning to persons claiming to own
the same, certain shares of stock in
the defendant bank The complaint
alleges that plaintiff in May, 1907,
was the owner of 25 shares of stock,
which we're in the keeping Of an
agent of plaintiff in the city of New
York, who wrongfully and without
authority pledged them as collateral
security for money borrowed by him
from divers persons, who now claim
to be the owners; and that in June,
1907, those persons claiming to be
the owners of Is shares of such stock
represented by certificates numbered
131, 1874 and 1856, presented them to
defendant, and demanded that they be
transferred to themselves on the
books of the corporation. Defendant
Fankhauser intervened and filed an
swer, pleading the general issues and
setting up a special defense to the
effect that, on January II, 1907, de-
fendant was broker doing business
in the city of New York; that on such
date one Franklin R. Anson, being
in possession Of and representing
himself to be the owner of 16 shares
of the capital stock of the defend
ant corporation, represented by GER
tiflcates numbered 1872 and 1873 for
five shares each, and No. III for six
shares, applied to him for loan of
$1,000 upon the security of these GER
tiflcates, and that defendant, relying
upon such security, lent Anson $1,000,
taking from him a stock note which is
as follows:
New York Jan. II, 1907.
"$1OO0.O0.
1.-TWO months after date for value
received, promise to pay to the Or
der of c. K. Fankhauser, one thou
sand and no-1O0 dollars, with interest
at six per cent, after maturity, at Of
flee of c, r. Fankhauser, 27 William
street, New York City and have de-
posted with him, as collateral, Sc
curity for the payment of this liabll-
ity 16 shares of the capital stock of
the Capital National Bank, Salem,
Oregon
"Should the market value Of said
collateral decline or in the event of
my failure to pay this obligation at
maturity said c. K, Fankhauser or
his assigns, shall have full power and
authority to forthwith SELL assign
and deliver the whole or any part of
said securities, at public or private
sale, and without advertisement or
notice to me, and with the right on
his part to purchase the same at such
sale freed and discharged from any
equity of redemption. After deduct
ing the amount of said liabilities
with all costs and expenses for col
lection, sale and delivery, to return
the overplus II any, to me. In con-
sideration of the loan hereby made
the borrower agrees that the said G.
X, Fankhauser or assigns shall have
the right to make such use of the
collateral security herein named as
he may desire, subject only to his
obligation to deliver to said borrow
'er the same number of shares of said
stock upon the payment of this note
at maturity; and in consideration of
the above, the lender agrees that the
borrowers liability shall be limited
to the collateral security hereby
pledged
"FRANKLINFR FR. ANsON."