Matthews

This is an action for conversion brought by the United States against Henry W. Matthews and Nettie Matthews, doing business as Yuba City Livestock and Auction Company. Jurisdiction is derived from 28 U.S.C. § 1345 .

On March 17, 1951, one Wheaton executed a crop and chattel mortgage to the Farmer’s Home Administration, an agency of the plaintiff. The mortgage covered farm implements, machinery, and certain livestock specifically listed, as well as after-acquired livestock and property. It contained the usual provision that upon default, the mortgagee was entitled to immediate possession of the mortgaged goods. The mortgage was duly recorded on March 17, 1951 in Yuba County, the county in which Wheaton then resided and in which the property in question was then located.

On November 19, 1951, Wheaton defaulted on his obligations to the plaintiff and remained in default from that date until March 2, 1953. During the period in which he was in default, November 19, 1951 to March 2, 1953, Wheaton fraudulently removed, from time to time, certain of the livestock mortgaged to plaintiff and took them to Sutter County, where the defendants’ business is located. Wheaton there had…