Stiller

Plaintiff brought action for fraud and deceit, alleging that defendant with intent to deceive made certain representations to the plaintiff which induced the latter to loan to Pacific Cotton and Finance Corporation the sum of $15,000 on its promissory note. The representations were that defendant was the owner of a one-third interest in the Pacific Cotton and Finance Corporation, that said corporation had a surplus of assets over liabilities in the sum of $7,118.28 and that the corporation had a paid-in capital stock of $60,300. These representations were made to the plaintiff through the medium of a balance sheet of the assets and liabilities of the corporation, signed by defendant as its president and a personal financial statement of the defendant, both of which were delivered to the plaintiff bank by defendant. Defendant’s answer does not deny the allegations in the complaint that defendant was not the owner of one-third of the capital stock of the corporation and that the corporation did not have $60,300 paid in on capital stock. The falsity of the latter representations, as well as the falsity of the representation as to surplus, is supported by evidence more than sufficient…