Page:Federal Reporter, 1st Series, Volume 8.djvu/572

95 s FEDEBAIi BBPOBTEB. �ti'on from William H. and C. A. Willson, his wife, the donc es of the Salem donation claim, and in 1856 he erected a large brick building on said lot 1, since known as " Griswold's block," in which he did business while he re- mained in Oregon. �In 1865 and prier thereto, "W. C. G. was engaged in the hat and cap busi- ness in N"ew York, and in mercantile ventures in Texas and Tennessee, and in 1867 became embarrassed from losses and depression in business. �On December 21, 1867, Griswold and wife conveyed the premises to James M. Adams, since dead, a liquor dealer in New York, and. related to the latter in the fourth degree, for the nominal consideration of $22,500, by a deed stafaped with only $11.50 worth of stamps, and reeorded on February 10, 1868. �On December 19, 1868, said James M. Adams conveyed the premises to Chester Adams, of Hartford, Connecticut, his uncle, a man of wealth, and a partieular friend of said J. 0. G., for the nominal consideration of $22,000, by a deed stamped with only $11 worth of stamps, and reeorded on February 1, 1869; and on December 30, 1870, the executors and beneftciaries under the will of said Chester Adams, he having died on July 6, 1870, conveyed the premises to said J. 0. G. for the nominal consideration of $10,962.63, by a deed which was not reeorded until February 12, 1878. �This latter deed recites that the conveyanee from James M. to Chester Adams of December 19, 1868, though "in form absolute," was in fact "con- ditional," and intended by the parties thereto " as seeurity " for the sum of $9,619.63, with interest thereon from April 1, 1869, " upon the distinct and express agreement and understanding that upon payment of said sum bysaid J. 0. G. the said Ghester Adams was to grant and convey said estate to said J.O.G." �On December 31, 1868, Griswold, for the purpose of procuring a settlement or compromise with his creditors, or the principal ones of them, flled his peti- tion in bankruptcy in the district court for theeastern district of ISTew York, and wasduly adjudged a bankrupt thereon, and on November 15, 1869, re- ceived a discharge from his debts, he having in the mean time eiieeted a set- tlement with his principal creditors, to whom he was indebted as indorser, for about 33J cents on the dollar. �On May 31, 1865, W. C. G. gave Mr. Chester N. Terry, of Salem, a power of attorney, authorizing him to act as his agent, under which he took charge of this property for about fi ve years, collected the rents, giving the receipts there- for in the name of Cliester Adams after October 1, 1869, paid the taxes, and remitted the reraainder to W. C. G. at New York. During this period, be- tween 1867 and 1870, the latter visited Saleœ to look after the property, and while there told Terry more tlian once that lie was finanaially involved in New York, and that " he had deeded the property in Salem to James M. Adams, in order to protect it from his creditors in New York, and that as soon as he could arrange his afEairs satisfactorily in New York he would have his Oregon property deeded back to him again." �. In; 1870, and 1871, W. C. G. made additions to the building on said lot 1, at a cost exceeding $5,000, which he personally superinteiidod and paid for. After the terinination of Terry's agensy, W. C. G. continued to manage the property. ��� �