Taber

The following facts disclosed by the evidence are sufficient for an understanding of the main points of controversy: Appellant, having obtained a bond for the purchase of certain mining property located in Nevada County and belonging to a corporation known as the Central Gold and Silver Mining Company, and desiring to purchase or having already purchased three thousand two hundred and fifty shares of the stock of that company and wishing to develop the mine and to sell it at a profit and needing money, he came to San Francisco and obtained a loan for two thousand dollars on his note with I. W. Taber and J. J. Cook as indorsers. In consideration of such indorsement he gave to them the following instrument in writing, claimed by respondents to be a declaration of trust, and constituting the basis of this action:

Appellant forfeited his bond but, in connection with one Coflin, who had also obtained a bond on the property, formed a new company called the Central Consolidated Mining Co. They paid for the mine from the sale of stock of this company. Appellant exchanged the three thousand two hundred and fifty shares in the old company for shares in the new at the rate of seventy cents…