Morse v. Kelsey

During the year 1910 the defendant Charles B. Kelsey traded with the plaintiffs, who were engaged in a brokerage business, buying cotton for future delivery upon a marginal account. In December, 1910, the plaintiffs called upon Charles B. Kelsey for additional margins. On or about January 5, 1911, Charles B. Kelsey proposed to the plaintiffs that they should take as security for his account a mortgage, which he stated was upon his house, for $10,000, and which he had in his safe. He afterwards brought to the plaintiffs a bond and mortgage for $10,000, a lien upon the premises in which he'…