Pacific Factors, Inc. v. St. Paul Hotel, Inc.

Plaintiff brought this action on a promissory note against St. Paul Hotel, Inc., as maker, and J. IT. Jonas & Sons, Inc., as guarantor. Service was not had upon St. Paul Hotel, Inc. J. H. Jonas & Sons, Inc., answered and the trial was had before the court sitting without a jury. Judgment went for plaintiff, and defendant J. H. Jonas & Sons, Inc., appeals upon a typewritten transcript.

Appellant was the holder of a negotiable promissory note in the sum of $4,150.20, executed by the St. Paul Hotel, Inc., as maker, payable March 1, 1928. Appellant negotiated with respondent for the purchase by respondent of this note at any time appellant might be in need of funds and instructed its bookkeeper to that effect. On September 29, 1927, appellant’s bookkeeper took the note to the office of respondent. At that time the note was not indorsed. The bookkeeper presented the note to Mr. Richard, secretary-treasurer of respondent corporation, and the latter caused to be written on the back of the note a guaranty which he informed the bookkeeper must be signed by an officer of the Jonas Company. The bookkeeper took the guaranty to Mr. Molerstein, secretary of the Jonas Company, for signature.…