Page:Federal Reporter, 1st Series, Volume 2.djvu/161

 154 IVDEBAL REPORTER. �payments which they might be compelled to make upon the notes. �Subsequently about 2,000 more tons of iron were loaned by Hamill, more notes were loaned by Holmes & Lissburger, and exehange notes were also loaned between the parties, until on July 29, 1874, the firm had reeeived from Hamill, 3,962 tons of iron, and his accommodation notes to the amount of $109,929.88. Tvsro of these notes, amounting to $11,877.11, "were not in existence at the time of the subse- quent bankruptoy of the firm, and two more, amounting to $12,213, had been paid to the Shoe & Leather Bank, leaving $85,839.77 due, provable and proved against their estate by rarious holders for value. �On July 29, 1874, Hamill had reeeived from Holmes & Liss- burger their accomodation notes for $167,039.97, of which h& subsequently returned $39,809.10. The residue, amounting to $127,230.89, he'had indorsed, and had used for his own benefit. Each party had agreed to pay tho notes of which they were respectively makers, except the $68,000 as afore- said. �Hamill suspended payment July 28, 1874, and Holmes & Lissburger stopped payment on the next day. The firm im- mediately commenced endeavoring to compromise with their creditors, and it beeame necessary to bave an adjustment of accounts with Hamill. The iron had been hypothecated, and was being sold from time to time by the pledgees upon a fall- ing market. �Up to this time no priee for the iron had been agreed upon, and the account was, consequently, in a very unsettled state. Lissburger had interviews with Hamill, and it was in sub- stance agreed, on or about August 25, 1874, that the loan should be treated as a purchase for $134,214, its cost to Hamill. It was also agreed that Holmes & Lissburger should, in addition to the $134,214, be charged with ail the notes and cash which they had reeeived from Hamill, and be credited with ail the notes which Hamill had reeeived and had not returned, or should not retum. �The idea that Hamill was to pay the $68,000 notes does not ����