Hathaway

This is an appeal by the defendant from a judgment against him for five thousand dollars and interest, upon two promissory notes.

Defendant’s answer admits the execution of the notes, but alleges that they were delivered to the plaintiff without the authority of the maker and contrary to his express direction; that defendant has never received anything of value for said notes and that they were given without consideration. Defendant also filed a “supplemental answer” in which he alleged that the notes were made and delivered by the defendant to be delivered to the plaintiff as and for the purchase price of fifteen thousand shares of the Los Verjels Land and Water Company; that the certificates of stock claimed to have been delivered by plaintiff as a consideration therefor were delivered on or about June 18, 1913; that at the time of the delivery of said stock to the defendant, the plaintiff did not own the said shares, but the said corporation was the true owner thereof; that the plaintiff was one of the promoters and organizers of the said corporation and caused the said fifteen thousand shares of stock to be issued to himself, with other shares, as a secret profit to himself…