Gladding, McBean & Co. v. Southern Securities Co.

Prior to the happening of the particular incidents upon which the action which forms the foundation of the appeal herein depends, a corporation known as Fry Bros. Contracting Company entered into a contract with the street superintendent of the city of Venice for the improvement of a street located in said city, known as Venice Boulevard. Thereupon the contractor filed the required bond for the benefit and protection of persons who might perform labor for, or furnish materials to, the contractor, to^ be used in the performance of the work in question. Thereafter the contractor entered into an agreement with the appellant Southern Securities Company by which, for certain consideration moving to it, the latter corporation agreed to furnish directly to the contractor certain moneys to be used by him in financing the job. In the course of the performance of the work incident to the contemplated improvement, the contractor became indebted to the plaintiff Gladding, McBean & Company on account of certain materials furnished by said plaintiff to the contractor ' and which materials were used in the construction of the said improvement. The said debt not having been paid, and the time…