Kahle

This is an action by the trustee in bankruptcy of a bankrupt corporation against several defendants, for an accounting, to declare a trust in certain securities, and for other equitable relief. The principal defendant is George C. Stephens, its former president. The trial court rendered judgment in favor of plaintiff for the relief demanded, and defendants brought this appeal, chiefly on the ground that the record does not support the findings and judgment. A study of the record, however, reveals ample evidence in support thereof.

The essential facts are as follows: Prior to 1919, defendant George C. Stephens and R. D. Spicer were the members of Stephens & Company, a partnership dealing in stocks and bonds. They were also the sole stockholders (apart from one other director’s qualifying share) of a California corporation of the same name, which dealt in street bonds and property sold for delinquent assessments. In 1919, they commenced a series of transactions which eventually led to this action. The first of these, which may be called the 1919 transaction, was ostensibly designed to increase the capitalization of the corporation so as to expand its business. Appellant’s version…