Porter v. Write

Bartol, C. J., delivered the opinion of the Court. This suit was instituted by the appellee against the appellant and John B. Rose, partners doing business in the name of J. B. Rose & Co. The appellee sued as endorsee for value of three promissory notes ; one dated June 28th, 1871, drawn by A. J. S. Smith, at four months, and endorsed by J. W. Butler & Co., J. B. Rose & Co., and Perrigo & Kohl. One dated July 28th, 1871, drawn by J. B. Rose & Co., at four months, endorsed by J. W. Butler & Co.., D. C. Morgan and Eastman & .Rogers ; and one dated September 2nd, 1871, drawn by J. B. Rose & Co., at four months, and endorsed by J. W. Butler &.Co., Eastman & Rogers, Perrigo & Kohl, and D. 0. Morgan.

The defence relied on by the appellee was that the notes were drawn or endorsed by his partner .Rose, without his knowledge or authority, that they were given or loaned by Rose, to J. W. Butler, his brother-in-law, without the knowledge or consent of the appellant, that the firm of J. B. Rose & Co. derived no benefit from them ; and that they were discounted by the appellee under circumstances which should have put him upon inquiry, to discover to ⁶¹⁷ him their character; and exonerate the appellant from liability. The proof shows that the notes were drawn and endorsed by J. B. Rose, in the name of the firm, without the knowledge of the appellant, and were purchased, or discounted by the appellee for J. W. Butler, who received the money for them. That the firm of J. B. Rose & Co. was carrying on the printing business, as was known to the appellee; but the extent of their business is not disclosed by the evidence. The appellant does not appear to have been actively engaged in the business, the active or managing partner was J. B. Rose.

John "W. Butler, the plaintiff’s witness, having testified, among other things, that he was carrying on business in “ house carpentering and building materials,” in the name of J. W. Butler & Co., and that the notes were discounted for his accommodation, was asked the question in chief, Cidid you exchange for them your firm’s accommodation notes in favor of J. B. Rose & Co?” The question was objected to; but the ¡Superior Court overruled the objection and allowed the question to be asked, and this ruling forms the subject of the appellant’s first bill of exceptions. No objection was made below to the form of the question, as leading, and no objection on that ground has been urged in this Court. The point made by the appellant on this exception, is, that the question and the answer thereto were inadmissible ‘cunless the witness knew, or could state that the defendant Porter, had knowledge of these transactions.” The point presented by this first exception will be noticed hereafter. In answer to the question, the witness J. W. Butler said, cc I was in the habit of exchanging notes with J. B. Rose & Co. I have had notes of-J. B. Rose & Co., which were paid; I was in the habit of exchanging notes with J. B. Rose & Go. in the year 1871, and in that ⁶¹⁸ year, loaned said firm in addition to exchanged notes, as much as $2500 in cash in the aggregate at various times during the year.

In some instances in which I got notes of J. B. Rose & Co. discounted, J. B. Rose & Co. got the money for the discounted notes ; in others witness’ firm got the money, and in other instances J. B. Rose & Co. got part of the money from a discount, and J. W. Butler & Co. got the rest. Mr. Rose sometimes asked witness to lend him money for his pay-roll on Saturday afternoon, also spoke of having notes to pay for which I lent him money ; in dealing with him, I dealt with him upon his statements.” After this testimony