Daily capital journal. (Salem, Oregon) 1903-1919, 1911-05-04
Dose V. The Bank Of WOOdburn, ct al,
Marion County.

VI "OOuDNihS wi pOAotAOh anu ~
M. Poorman, appellants. Appeal
from the circuit court of Marion
county The Hon. William Galloway
judge. Argued and submitted April
4, 1911 P. H. Darcy George G.
Bingham on the brieO, attorney for
appellants. Grant Corby, attorney
for respondent. Bean, j. Modified.
This is a suit to have a bill and a
deed declared to be mortgages, and
to require defendants to convey to
plaintiff the property therin de-
scribed.
At the time of. the various transac-
tions, the PLAINTIFF, Fred Dose, was
doing business as a produce broker
at Woodburn, Oregon, and defendant,
The Bank of Woodburn, a corpora
tion, was conducting a general bank
ing business at the same place. On
November 5, 1902, Dose, being in
debted to the bank, executed thereto
a bill of sale of his WOodburn ware
house property, consisting of the
warehouse, engine house engine,
boiler and all machinery, scales,
trucks, scoops and safe. On October
Is, 1906, Dose purchased from d. A.
MKee and wife the following de-
scribed property, the deed to which
he caused to be executed to defen-
dant, ]. NJ. Poorman, for the benefit
of the Bank of Woodburn, of which
Poorman was cashier, viz:
Beginning at a point on the west
boundary of the right of way of S. P.
r. R., which point is southerly from
the intersection of said east bound
airy with the center of the county
road at McKees station, Is rods and
10 feet; thence southerly along the
west boundary. 80 feet; thence west
erly at right angles to said west
boundary AZ feet; thence northerly
parallel with said west boundary 80
feet; thence easterly at right angles
to said west boundary AZ feet to the
place of beginning, containing 27OO
square feet of land. Also a right of
roadway over strip three rods wide
from the southerly line of the above
described premises, and parallel with
said right of way to said county road,
situated in section "a township 5 S.,
range 1 W., W. NJ, Marion county
state of Oregon.
1t is alleged by plaintiff that this
conveyance was made to secure to
the bank the payment of an over
draft of $1,000 with interest thereon.
Defendants assert that the convey
ance was executed for the purpose of
securing all the Indebtedness of
plaintiff to the bank, the different
amounts being, $1,000, and $12S rent
or interest thereon, due September l.,
1909, which is not disputed; $40 in
surance, and $500, with interest at
eight per cent per annum from the
4th day of April, 1909, being a part
of a Judgment of $3,9S6.4O and in
terest, rendered October 5, 1903, in
favor of the bank against plaintiff
and his former partner, one Charles
Scott. Upon this judgment there was
afterwards collected on execution
against the property of Charles
Scott the sum of $1SSS.SO.
Bean, j.: The real controversy,
and the only question for determine
tion in this suit is the amount for
which the property was conveyed as
security 1t appears that about the
first of the year 1909 the bank en-
deavored to obtain a settlement of
the Judgment, proposing to take
therefor three separate notes of
$500 each, signed by plaintiff and his
wife, which were to be indorsed upon
the Judgment. Plaintiff, learning
the intention of the bank to assign
the balance of the judgment, refused
to give the notes, and negotiations in
regard thereto were ended, and moth
ing further done, except that $500
was indorsed upon the judgment as
paid, and the balance of the iudg-
ment assigned to one John Scott.
Regarding conveyance of the prop
erty by defendants to plaintiff, which
transaction is briefly described by
both Dose and Poorman, plaintiff
testifies that the bank would convey
to him when he had no debts with
the bank" and that he caused the
Mckee property to be conveyed to
Poorman in trust for the bank, Gin
order to secure the bank fully"
Defendant Poorman testifes that
the first bill of sale of November 8,
1902, was to secure an over-draft of
$1,000; that, in fact, the property was
security for the whole amount owed
by plaintiff, and that they finally
came to an agreement to settle on
$500, the amount to be paid upon the
Judgment by plaintiff This agree
ment however, was not consum-
mated Whenever Mr.. Dose and
would talk over this settlement, he
would always say, You have the two