Morgan

This action is one to recover sums aggregating $4,532.87 loaned by the plaintiff to the Radio-Therapy Corporation, a Nevada corporation. To evidence portions of the amount loaned two promissory notes were executed to the plaintiff on behalf of the corporation; the first, for $2,500, executed by defendant Richard E. Callahan and C. R. Gailfres as its president and secretary, respectively, and the second, for $1,771.11, by Richard E. Callahan as president, and Miriam A. Callahan as its secretary, no note being executed for the balance of the loan. As se curity for the several notes two chattel mortgages were executed by the same officers of the corporation, neither of which contained a covenant to pay the debt. In the mortgage securing the first note defendant Mathilde' P. Callahan joined with the corporation as a mortgagor. The plaintiff, as grounds for recovery, alleged that the loans were made at the request of defendants 'Callahan, and were induced by the false and fraudulent representations of Richard E. Callahan, the president of the corporations, as to his own financial condition and that of the corporation, which the plaintiff believed and upon which he relied in making the…