60 Minn. 272 | Minn. | 1895
This action is brought to recover the amount of a duebill for $1,250, made and delivered by defendant to one L. H. .Maxfield, who thereafter died. Administration was taken out on his estate, and this duebill was assigned by the probate court to plaintiff. The duebill was given for the purchase price of 100
The capital stock of the corporation in question was $300,000; or 6,000 shares of $50 each; while its only assets were $10,000 in cash, and the right to procure from a certain New York corporation the registers made by it under patents, and used in mercantile establishments in registering accounts, and rent them in this state, Iowa, North and South Dakota, Wyoming, and a part of Wisconsin. There was evidence tending to show that this right was of no great value. Maxfield prepared and published an advertisement in which be stated, among other things, that said capital stock of $300,000' was all paid in; and that a similar corporation was organized for-the same purpose, and was doing business on the same plan, in Chicago, and that, after six months’ transactions, its books were examined by the bank examiner of Illinois, an expert, who discovered that in that time the company had earned 7$ per cent, on its capital stock of $250,000. There was evidence tending to show that defendant had read this advertisement before purchasing the stock. Maxfield then prepared a subscription list, by the terms of which he agreed to sell, and the other subscribers thereto agreed to purchase, for $25 per share, the number of shares set opposite their respective names, of the stock of said first-named corporation. The first two subscribers are one Driscoll and one Schurmeier. There is evidence tending to show that they signed for 200 shares each at this price, and that Maxfield then erased the price of $25
Order affirmed.