Montgomery v. Schwald

In this case suit is brought on two promissory notes admitted to have been executed by the defendants. Their defense is failure of consideration. A jury was waived and the cause tried before the court. Judgment was rendered for plaintiff on both counts. Defendants appealed.

Some time in 1908 all the parties to this suit were interested in a corporation called the “Mexican Gulf Land & Development Company Limited” which was organized to buy 75,000' acres of land in the Republic of Mexico, and which bought said land largely on credit. The company sold treasury stock as far it could and used the…