Downey

The complaint filed in this action seeks to charge the defendant, John Gr. Downey, as trustee of the plaintiff, touching the benefits secured to the defendant by the terms of a certain contract between the latter and Melchert and Linderfeldt.

The circumstances appearing are that these persons had purchased the “ Wilhart Tract ” of land, situate in the City of Los Angeles, upon which they had payments to make. They had also agreed to sell a portion of the same tract to the “ Pioneer Building Lot Association of East Los Angeles,” at a considerable advance upon the price they had agreed to pay to the Wilharts. In order to provide themselves with money to pay to the Wilharts, they applied to Childs, who was one of the directors of the banking corporation, plaintiff here, but without success. At the instance of Melchert and Lindenfcldt, Childs brought the matter to the attention of the defendant, who was another director of the banking corporation, plaintiff here, and at the time acting as its president, and these two agreed to furnish the sum required, upon condition that they should become personally-interested in the sale to be made to the Pioneer Building Lot Association, to the…