CAPE SABLE COMPANY'S CASE.—3 BLAND. 591

December advertised by the sheriff to be sold on the 6th of Janu-
ary then ensuing, for cash.

On the 4th of January, two days previous to the time fixed on
for the sale, the present bill was filed, which states the facts here
related; and that no notice of the demand was given to your ora-
tors who represent the interest of John Gibsoti, who was entitled
to one-third of the stock of the company: no opportunity was
offered them contesting it: but in pursuance of an arrangement
entered into between Caton and the plaintiffs, the proceedings
mentioned took place. That at the time the judgment was given,
with such eager precipitation, the manufactories were carried on
by the company, yielded such great profits, that the debt, if really
due, would have been satisfied, if the usual course, which pre-
cedes the obtention. of judgments, had been pursued. The bill
also states, that Caton. combining and confederating with Robert
and John Oliver to injure and defraud, and with a view of plac-
ing beyond their reach the property caused the judgment and
proceedings.

To this bill, as well as the first, Richard Caton, against whom
such serious charges have been made, has not answered.

Robert and John Oliver, in their answer, admitting the judg-
ment, deny that in entering the said judgment there was any
illegal confederation or fraud on the part of those respondents, or
as far * as they know, on the part of any other person: so
far from it. they positively aver, that whole amount for 610
which the judgment was entered was, at the time of entering the
same, and still is justly and fairly due. The answer states, that
at the instance of Richard Caton, he being legally constituted
president, they loaned to the company, at different times, several
sums of money, amounting in the whole to the sum of 817,000, on-
the 20th February, 1822, under an engagement entered into by
Caton with them, he being fully authorized to make such engage-
ments, that the said company would render them secure by giving
them a judgment against the company. That the pecuniary em-
barrassments of the company, at the time when the advancements
were made, were such, but for them, an entire stop must have
been put to their proceedings, to the great loss and injury of all
concerned. The only likely way to better their condition was to
procure loans on the faith of the property; that they authorized
their president to enter into such loans, and to pledge, if neces-
sary, the funds of the company; that the loans never would have
been made if such security had not been obtained; or some other
good and sufficient indemnity; without the loans the company
must have come to a stop.

Several questions present themselves, arising from the facts dis-
closed by the bill and answer. First. Admitting that the whole
sum of money was loaned, could the defendants Robert and John