ment, which was also signed by all of the defendants, receipt was acknowledged of the bonds “as a loan for a period of four months” and promise was made therein to return the same or similar bonds or their cash market value equivalent. The money which Mrs. Powell was asked to furnish through the medium of the bonds was to be used by defendant “to incorporate and get out the literature, and to rent an office, and for travelling expenses”. Cook received the bonds from Mrs. Powell on October 31, 1934.
During the same afternoon in which he received the bonds, Cook borrowed $300 on the bonds from a bank. The next day the bonds were sold by the bank on the order of Cook and the proceeds of the sale, $4,618.76, was placed in the bank to the credit of the defendants, each of them signing the signature card. On the following day three $1,000 checks were drawn on the account, each in favor of one of the defendants, and all of the checks were promptly cashed. On November 2,1934, a check was drawn to the order of cash in the amount of $48.76 and this amount was used to purchase a cashier’s cheek in favor of Mrs. Powell, the amount being the sum due for accrued interest on the bonds. This check was sent to Mrs. Powell from San Francisco on November 13, 1934. Between November 16 and November 27, 1934, checks were drawn by the defendants from time to time until the account was finally closed.
Mrs. Powell attempted to contact defendants Weisbrod and Davis at the office where they were employed, about November 4, 1934, in order to have her bonds returned. At that time she talked to Mr. Lemon, the broker in charge of the office, who took her to the office of Mr. Seiler, an attorney. On November 6,1934, Mr. Lemon discussed the matter with Davis and Davis said that the bonds had not been sold. On November 7, 1934, Davis told Mr. Lemon that the bonds had been sold. Mr. Seiler had a conversation with Cook some time after January 1, 1935, in which Cook stated that the money he had received from the bank account had been used for “front money”; that it was “to put on a show, to buy some clothes, buy an automobile and other things”. He further stated that he had used most of the money after Mr. Seiler had, on behalf of Mrs. Powell, asked for the return of the bonds.