Moris and his partners had failed to both pay the instalments on the Washington D.C. building lots and finished building twenty houses (they had contracted ten houses annually for seven years on said lots); On July 10, 1795, Morris and Nicholson bought out Greenleaf's interest in the December 24, 1793, agreement. The commissioners began legal proceedings to regain title to the 6,000 lots owned by NALC and the 1,115.25 lots owned by Greenleaf personally. The worsening financial problems of Greenleaf, Morris, and Nicholson led to increasingly poor personal relations among the three men. Nicholson, particularly bitter, began making public accusations against Greenleaf in print. Morris attempted to mediate between the two men, but his efforts failed. In an attempt to resolve his financial problems, Greenleaf sold his shares in the NALC to Nicholson and Morris on May 28, 1796, for $1.5 million. Unfortunately, Morris and Nicholson funded their purchase by giving Greenleaf personal notes. Furthermore, they endorsed one another's notes. Morris and Nicholson, themselves nearly bankrupt, agreed to pay one-quarter of the purchase price every year for the next four years. Greenleaf's shares were not to be transferred to Morris and Nicholson until the fourth payment was received. On September 30, 1796, James Greenleaf put 7,455 of his NALC shares in a trust (known as the "391 trust" because it was recorded on page 391 of the firm's accounting book). The "391 trust" was created to generate income (from the 6 percent dividend) to pay a loan given to Greenleaf by Edward Fox. A trustee was assigned to hold on to the shares. The same day, Greenleaf put 2,545 shares into another trust (the "381 trust"), as a guarantee against nonpayment of the dividend by Morris and Nicholson. Morris and Nicholson's made the first payment to Greenleaf for the one-third interest in the NALC by turning over title to several hundred lots in Washington, D.C. On March 8, 1797, Greenleaf executed the 381 trust.