Kemp

Action by A. N. Kemp, receiver in equity of Guaranty Building & Loan Association of Los Angeles, to declare a trust to exist in his favor in all the property of the Elmer Company, Limited, a corporation.

Certain facts are stipulated, a deposition of Gilbert H. Beesemyer, defaulting manager of the Guaranty Building & Loan Association, has been offered in evidence, certain financial statements of accountants and an oral offer of proof, and a ruling has been sought as to the sufficiency of the evidence thus proposed to justify a judgment in favor of the plaintiff.

From the proposed evidence it appears that Beesemyer, while manager of the Guaranty Building & Loan Association of Los Angeles embezzled from that institution $8,145,000. Of this amount $1,822,850.97 was invested in organizing the Elmer Company, and this sum comprised all the money that the Elmer Company ever received from any source except that borrowed from the De Mille Company and with the further exception of the rents, issues, and profits growing out of the investment of the funds thus embezzled from the Guaranty Building & Loan Association. That Beesemyer organized the Elmer Company as an agency from the profits of…