Page:Federal Reporter, 1st Series, Volume 5.djvu/718

706 FBDBBAL BKPOBTBR. �of the bankrupt because his assets had neither paid nor were equal to 30 per oentum of the debts upon which he was liable as principal debtor. One of the debts proved against him was a note in the following words, viz. : �"$1,619.96. �"Twelve months after date we promise to pay to Mrs. M. F. Northern, guardian, etc., the sum of $1,619.95, for value re- cel ved, -with interest from this date; and, in case said interest be not paid at maturity, tben the same to become principal and bear interest ; or, in other words, interest hereon, if not paid ahnually, to be compounded. This fif teenth of November, �im. �[Signed] "A. Htndman, �"D. Œ WooD, "T. B. Leslie." �This note was given under the following circumstances : The above-named Wood and Leslie and one Ligon. under the firm name of Wood, Leslie & Co., being the owners of the Covington mills, borrowed from Mrs. Northern the sum of mohey mentioned in it, for which they executed a note identi- cal in form, except as to dates, with the above note, and ex- cept that it was signed only with the firm name. The bank- rupt purchased Ligon's interest in the mills, and agreed to pay what was estimated as Ligon's share of the Northern note, namely, $584.78. There is some dispute in the testi- mony as to whether it was so understood with the crediter when they canie to substitute the note of the new firm for that of the old firm, but both the register and the court found that the crediter either did not know of or did not assent to any change in the liability of the partners, and that, as to her, there being no con tract for suretyship, ail the obligors were principal debtors, and liable jointly and severally each for the whole amount. But as to the incoming and retiring partner, and the other members of the firm, it was understood that the incoming partner should only be liable to pay one- third the note, and the remaining partners would pay the other two-thirds. He paid Ligon the purchase money, — $2,- ����