Fidelity Reserve & Loan Co. v. Lincoln County Logging Co.

In the year 1930 the plaintiff was engaged in the business of financing industrial enterprises, the defendant in the logging business, and the Anchor Tug Boat Company in towage service. October 12, 1929, the defendant and the Anchor Company effected an agreement whereby the Anchor Company undertook to tow the defendant’s log rafts for a consideration. Some time in 1930 the Anchor Company applied to the plaintiff for a loan. March 6, 1930, the defendant signed a letter addressed to the plaintiff wherein it stated:

‘‘We understand that the Anchor Tug Boat Company is negotiating with you for the…