64 Iowa 175 | Iowa | 1884
The defendants were engaged in a general merchandise business upon a capital of $500, contributed in equal parts by each partner. Wamsley had no means other than the sum he put in the firm, and Hartness was entirely without means, and was indebted as a partner in a firm that had ceased to do business. He borrowed from the bank the money which he put into the business with Wamsley. He also owed the bank as a partner in the firm with which he had before been connected. Wamsley & Hartness became indebted to the bank in the course of their business.
It is shown that Hartness, who had more acquaintance with arid experience in business than his partner, proposed to retire from the firm, and appropriate his interest therein to the payment of the debts he owed to the bank. He was induced to remain in the concern by an arrangement that the firm should pay his debts, to the bank, amounting to less than $300. In pursuance of this arrangement, the partners borrowed of Perrin, the vice-president and a director of the bank, a sum sufficient to pay the debts both of the firm and Hartness to the bank. This loan was secured by a chattel mortgage upon the stock of goods held by the firm, and the money realized by the loan was paid to the bank. The next day after the execution of the mortgage to Perrin, the firm made a bill of sale to Burton on account of an indebtedness to him. Burton took possession of the goods, and immediately the partners
Affirmed.