The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1912-08-23

'olume OF reports. and passed 1t across
the table to me, his finger marking
the page. 80
1t was a decision Of the
Court OF Last Resort in the
state where the mortgaged prop
erty was situated, holding, that such
mortgage, certified under the old
form of acknowledgment, could not be
admitted to record SO as to create a.
lien on the property, that such an &C.
acknowledgement was void, and that
spreading such a mortgage, SO &C
knowledged, on the county records did
Dot,makeit a,recorded lien. 4
& The matter was now clear. The
Gates mortgage was not a lien. Gates
was only general creditor, The first
and only lien on these coal properties
was this last mortgage, which was
properly acknowledged, and could be
admitted to record. The estate pledged
5wds worth merely the amount OF the
last mortgage. When 1t was fore
closed, as it doubtless would be, Hurst
& Solmeyer's clients, the innocent for
eign holders of the really secured
bonds. would be paid in full. Myron
Gates would come In after them as a.
general creditor, but there would be no
assets with which to pay his debt. His
bends were, therefore, worthless, his
debt worthless. The. bank had been
paid an cash. the'note llqhidated; thus
the bank was mot affected. Hurst &
solmeyer@would make twenty thousand
dollars Myron Gates was the only
one upon whom the loss would fall.
He would be out two hundred thou
sand dollars.
l understood now why Randolph Ma.
son had merely said, Let the man ex-
ecute this mortgage and pay the
bank" When he had looked at the
legal paper he had instantly seen the
old form of acknowledgment and knew
that it was void. Myron Gates drafts
man had worked his undoing. 1t was
necessary only to get the money from
Gates and pay the note at the bank,
so that this valid debt would be liquid
ated with cash and the bank eliminat-
ed from the problem, then create a
proper lien to a second creditor and
leave Gates to whistle for his money.
The case was simple, eminently prac-
ticable, impossible of failure. Myron
Gates had set his own trap, digged his.
own pit His trap had crushed him,
his pit received him, the score was set
tledewith him to the last cent.
! saw, also, why Randolph Mason
wished to keep the explanation con-
fined to the fewest possible persons.
He did not wish Gates to discover the
defect in his mortgage until he at
tempted to foreclose 1t, after the first
default in the payment Of the interest
on his bonds, one year after the exc
cution Of the mortgage. 1t would then
be too late for any proceedings In in
solvency to affect the second mortgage.
So he had left the solution a mystery,
even to me, and enjoined Hurst & Sol
meyer to secrecy. Myron Gates would
rest easy until he began to foreclose,
some months, perhaps, after the end
Of the year. Then he would awake to
find his mortgage smoke under him,
his bonds rags, his debt vanished.
l found General Cruger waiting for
me on the deck of the Baltic when I
arrived. Good fortune had restored
his middle age, his step was springy,
the muscles of his face firm again, the
old light rekiudled in his eyes. He
put his arm around my shoulder. and
we walked to the bow of the steamer.
The old man was thrilling like a boy
over his anticipated plan. He would
join Emily in Paris. they would spin
through the great Alps to the Italian
lakes and return along the Riviera TO
Marseilles; but they should live a
week, not a day less than whole
week, with Guido at Pollanno in the
teeth of the fieas, and he would make
no bargain with Guido, the Italian
should rob him like a brigand Of the
first order. In three years they would
return.
Imade one of the cheering crowd or