Taylor

Agnes E. Taylor, appellee, brought this action to recover from the Federal Land Yalue Insurance Company certain mortgages and notes which she alleged were conveyed to it by her in accordance with the terms of an express trust for the purpose of deposit with the treasurers of the states of Nevada and California, as required by the insurance laws of these states, as a condition precedent to the doing of the insurance business. The appellant claims that the) transfers were made to it in consideration of stock issued by the corporation to the appellee. This contention constitutes the principal issue in the ease. The arrangements with the appellee were made by W. P. Netherton, who organized the appellant corporation, and appellant contends that, notwithstanding that the court may determine that as a matter of fact there was an express trust *352 with reference to the property as between appellee and Netherton, Netherton transferred the property to the Corporation on an entirely different arrangement, namely, an exchange of the property which had been assigned to him in the first instance, for stock of the corporation, and that by this breach of trust on the part of Netherton a…