Mayr

This action was brought to recover upon two guaranties. One Milton Kauffman executed two promissory notes payable to Goldschmidt Brothers, a copartnership composed of Herman and Max Goldschmidt. Upon the execution of the notes Max Goldschmidt wrote on the reverse side of each of them the guaranty which is the basis of the action. He signed each of the guaranties, “Goldschmidt Bros., by M. Goldschmidt.” The notes were by Kauffman, to whom they were handed by Max Goldschmidt, then taken to plaintiff, a money lender, who paid over to Kauffman the amount of the principal of the two pieces of paper and kept them. The money was used in the development of a land project known as Valencia Groves. The notes not having been paid at maturity the present suit resulted. The defense made by Herman Goldschmidt and by the copartnership, which had at the time of the trial been dissolved, was that Max Goldschmidt had no authority to execute the guaranties in the name of the firm. Plaintiff had judgment and Herman Goldschmidt and the copartnership appeal.

At the time of the transactions which are involved in the action the copartnership was engaged, principally at least, in the liquor business, but…