Page:Federal Reporter, 1st Series, Volume 7.djvu/702

 690 FEDIJ^l^ EBPOBIESe �6,500 acres from David Preston. These lands were situated in the counties of Alpena, Alcona, and adjoining counties. Garrett B. Hunt, Jacob Eschelman, and Henry S. Cunning- ham held a purcbase-money mortgage upon all the lands in tow.nships 28 and 29 north of range 8 east, amounting to aboui 6,500 acres, to secure the paymcnt of $35,000 and interest, given to them by Oliver, who was then carrying on business at a place called Ossineke, in the vicinity of the property, in the manufacture and sale of lumber from the lands above mentioned, in copartnership with the defendant George J. Eobinson. The lands covered by the Cunningham, Hunt, and Eschehnan mortgage were also encumbered by other mortgages and claims, amounting with said $36,000 to about $100,000. Oliver & Eobinson owed about $36,000. The value of the real estate at this time was, as estimated by Oliver, $226,000, including mills and dock; and the personal property about $70,000. Making a liberal allowance for over- estimate, Oliver's assets must at this time have exceeded his iiabilities by about $150,000; but he was manifestly embar- rassed financially. As early as June, 1868, some dif&culty had grown up between Oliver and his partner ; and, reallzing his financial embarrassment, he appealed by letter to defend- ants Hunt and Cunningham, two of the mortgagees, to obtain assistance, stating fully to them his assets and Iiabilities, and the obstacles to a successfui prosecution of the business, interposed by his partner Eobinson, and proposing to deed his property to them in trust for the payment of his indebt- edness, and in July folio wing visited Buffalo and had a per- sonal conference" touching the same matter. On the third of September we find Cunningham, who Was doing business in Buffalo, N. Y., at Oliver's place of business in Michigan, when Oliver executed deeds of conveyance to him of all his interest in all his lands, and a bill of sale of the Personal property. Before' kaving Buffalo, and before recei^ng the conveyance from Oliver, Cunningham, by advice of cbunsel, executed an assignment of his interest in the mortgage to his <50-mdrtgagees, Hunt and Eschelman, without, howeverj re- •ceiving any consideration thorefor. Cunningham paid no ��� �