Page:Federal Reporter, 1st Series, Volume 3.djvu/207

 £00 FEDERAL REPOnTER. �conveyed a certain house and lot in said city. Thetliird con- Teyance was a mortgage bearing date February 1, 1876, con- veying about 1,000 acres of farming lands in Pottawattamia county, lowa, and purporting to secure the payment of a certain note of $4,000, given to the defendant by S. Folsom & Co., dated September 16, 1875. �A preliminary objection was taken at the hearing to the effeet that the validity of these conveyances, and of the title of the defendant to the property in question, was now res ad- judicata, by reason of certain proceedings in the circuit court of Pottawattamie county, lowa. It seems that in June, 1871, Jeremiah Folsom deeded the real estate in question to his brother Simeon, taking back from him a bond to reconvey at the end of ten years, should certain conditions therein named be fulfilled. Afterwards Simeon conveyed to Frank under a power of sale said to be conveyed in said bond, Afterwards, and in 1872 or 1873, Frank, claiming to own the real estate by virtue of the deed from Simeon, and also claiming that Jeremiah had broken his covenant, began an action in the circuit court of Pottawattamie county, asking that his title to this real estate be quieted as against Jeremiah Folsom and his wife, whom he made defendants, and that he might be decreed to be the owner in fee of the premises. �Defendants answered, setting up in substance that the deed and bond constituted simply a security or mortgage, and not an absolute conveyance as between the parties, and that Frank had fuU notice of this fact, and consequently had no better title than Simeon. Defendants also filed a cross-bill, asking that the transaction be decreed to be a mortgage; that the same be redeemed, that an accounting might be had, and a time fixed within which the defendants might pay such sum and retain their title to the premises. To this answer and cross petition Frank Folsom replied, and the case was at issue. After the issues were thus joined, Frank conveyed a large portion of said real estate by two •warranty deeds to Eliza F. Folsom, the defendant in this suit. Before the hearing Eliza filed an intervening petition, ftverring that she had become the owner of a portion of the ����