by John Marshall Harlan

“ In May, 1875, Nathan Matthews, of Boston, was indebted to Thomas Upham, of the same city, in a large amount,-about $200,000, for money loaned from time to time. This debt was secured by railroad bonds and stocks and by a mortgage upon real estate in Boston. ”

“ Edward admits in the original bill that Nathan desired to substitute, for the bond and mortgage of 1875, the 150 first-mortgage bonds of the Memphis & Little Rock Railroad Company, and the 50 first-mortgage bonds of the Carolina Central Railroad Company,-the proceeds of the sales of which are here in question,-together with the Furber note for $5,000, and that the agreement of 1877 was made in order to effect that result. ”

“ The mortgage here referred to, dated May 8, 1875, was given to Nathan Matthews by Edward Matthews, his wife uniting with him, upon certain real estate in the city of New York, to secure the payment of the mortgagor's bond or obligation to the mortgagee for the sum of $250,000 maturing May 8, 1876. This mortgage contained a proviso to the effect that if the mortgagor, his heirs or personal representatives, should pay to the mortgagee, his personal representatives or assigns, the amount of that bond, and the interest thereon, the mortgage should be void. ”

“ Besides, Edward was hard pressed for money, being then-as he admitted in a letter of May 4, 1875-indebted to Nathan alone in the sum of $200,000, and expected Nathan to raise for him the further sum of $50,000 if required. ”