Denovan

The plaintiff commenced an action against the defendants to obtain a decree rescinding a contract of purchase of 3,333 shares of the capital stock of the defendant corporation. The defendants answered and a trial was had before the court sitting without a jury. The court made findings in favor of the plaintiff and from a judgment entered thereon the defendants have appealed and have brought up a hill of exceptions.

1. The defendants claim that the material findings on the allegations of fraud were not sustained by the evidence. Among other things the following facts stand out prominently. Prior to the time the plaintiff made his purchase the defendant corporation was a going concern operating a woolen mill near Los Angeles and had been operating the mill for some time. The plaintiff had recently left Australia and had taken up a residence at Riverside. He was the authorized representative of certain firms in Australia to sell wool in this country. He met Mr. C. B. Eyer, president of the defendant corporation. They had talks about the plaintiff selling to the defendant some Australian wools. At first Mr. Eyer stated that the corporation had a full supply. Later he stated that the…