Flippen

This is an action on a promissory note for $10,000 dated June 16, 1931, payable on or before six months from date with interest at eight per cent per annum. The note was executed by E. J. H. Primus, was payable to “myself” and was indorsed by Primus and delivered to one E. M. Hilton on the day it was made. On the same day a written agreement was executed by both Primus and Hilton providing that Hilton was to purchase 100,000 shares of stock of the Mammoth Mines Corporation from A. G. Mahan at twenty-five cents per share, which stock he was to resell and trade at $1 per share, and that Hilton was to sell the note and use the proceeds in furthering a campaign for the sale of the stock to be so purchased. Hilton agreed to pay the note from the first proceeds received from the sale of this stock and to return the paid note to Primus, it being further agreed that all profits arising from the sale of the stock should be divided between the two.

On July 1, 1931, Hilton indorsed and sold the note to one J. M. Horton, receiving $5,000 in cash with an agreement to pay Hilton an additional $2,500 if and when the note was collected. No part of this $2,500 was ever paid. Primus having died…