Shelley

In February, 1922, the appellant, Joseph Shelley, and his brother, Sam Shelley, were copartners and were engaged in operating “Army Stores” in San Francisco, Fresno, Eureka, Pittsburg, and Stockton, California, and at Reno, Nevada. They owed large sums of money and were in financial difficulties and their creditors were uneasy. Joseph Shelley and his brother, Sam Shelley, feared they would be pressed by their creditors. Accordingly, they conferred with Mr. Elkus, a member of the Board of Trade of San Francisco, about the situation and Mr. Elkus arranged a meeting of the Board of Trade, which was called for February 18, 1922, and at which time Mr. Elkus submitted a signed statement which he obtained from the Shelleys showing their assets and liabilities. At a subsequent meeting of the Board of Trade on February 24, 1922, the committee of investigation having reported, it was agreed that an extension of time be granted for the payment of the Shelleys’ obligation, payments to be made at the rate of $15,000 per month, the Shelleys to execute interest-bearing notes to the creditors, and it was then agreed that the creditors were to stand all the expenses, and on March 8, 1922, the fact…