Page:Federal Reporter, 1st Series, Volume 4.djvu/638

 62e VEDEBAL SEPOBTEB. �in Chicago to different creditors, from whîch statement it appeared that the firm had assets to the amount of about $39,000, and owed about $23,000. In the statement was included the amount of indebtedness in Chicago, vhich was set down at about $2,000. Upon the representations thus made to the New York creditors an extension was granted, not for the whole time demanded, but so as to relieve the par- ties from the necessity of meeting their paper, then about to fall due. �McElwain returned to Chicago, and they eontinued their business until the following September, when a general assign- ment or sale was made by the firm of ail their stock to Henry F. Billings, the principal defendant in this case. In October of the same year two of the New York creditors came to Chi- cago to inquire into the condition of the firm, and the resuit was a petition in bankruptcy against the firm, and a deoree of the court finding that they were bankrupts. �The evidence shows an inventory was taken of the stock of the firm in May, 1 870, amounting to $30,000, and that there was an inventory taken with a view of the sale to Bill- ings, which amounted to about $17,000. Considerable nego- tiations took place between Billings and McElwain before the trade was consummated and the assignment made. McEl- wain proposed that Billings should buy out Nowlin, the othor partner, which proposition was declined by Billings. The offer made by Billings, which was finally accepted, was that the goods should be invoiced, — recently purebased goods at their cost, and goods which had been on hand for some time at eurrent priees for goods of like qualities, and the fixtures at cost, — and from the amount thus asoertained a discount of 25 per cent, should be made. The price thus obtained was $13,040.58, upon which basis the contract was made, and the property turned over to Billings, who immediately had a new sign made in his own name and placed over the door, and Nowlin & McElwain were retained for a few months to assist in carrying on the business. One of the reasons given by McElwain for the sale was that the time during which they were to be partners had expire d, and that Billings was him- ����