United States v. Hegeman

Citations

• 204 Pa. 438
• 54 A. 344
• 1903 Pa. LEXIS 825

Syllabus

<p>Principal and surety—Taking of note for book account—Extension of time—Release of surety—Conflicting evidence—Act of congress of August 13, 1894, 2 U. S. Comp. Statutes, 2523.</p> <p>Where a creditor on a book account accepts notes to the amount of the book account, the mere fact of the acceptance of the notes raises no presumption that the notes were in payment of the book account; it will be presumed that they were merely taken as collateral security for the book account.</p> <p>In an action by the United States foj the use of a material man against a contractor and his surety on a bond, given under the Act of Congress of August 13, 1894, 2 U. S. Comp. Statutes, p. 2523, where it appears that the material was charged against the contractor on the books of the material man, and that subsequently the latter accepted notes of the contractor to the amount of the book account, without knowledge of the surety, and thereafter extended the notes without knowledge of the surety, and the evidence is conflicting as to whether the notes were accepted as payment or merely taken as collateral security, the case is for the jury, and a verdict and judgment against the surety will be sustained.</p> <p>In an action on a contractor’s bond given under the act of congress of 1894, to recover for timber furnished to the contractor, freight and demurrage on the timber may properly be recovered from the surety as part of the cost of the timber.</p>