176 Pa. 612 | Pa. | 1896
Opinion by
The defendants were the incorporators and holders of the stock of the Keystone Standard Watch Company. In their application for letters patent, they set forth among other things that the capital stock of the corporation was $500,000 divided into five thousand shares of the par value of $100 each; and “ that fifty thousand dollars being ten per cent of the capital stock has been paid in cash to the treasurer of said corporation whose name and residence are William Z. Sener, Lancaster, Pa.” The statement is the method prescribed by law for assuring the executive department of the state government that the requirements of the law have been complied with by the corporators and that they are entitled to be made a corporation. After letters patent have been issued, the statement with all its indorsements must be recorded in the proper county, for the information of the public, in order that the fact of incorporation may be known and the credit to which the corporation is entitled may be intelligently judged of by all persons who may have occasion to do business with it.
This statement, made and sworn to in the usual manner, is now alleged to have been false in so far as it asserted the payment of $50,000 to the treasurer of the corporation, and it is asserted that not one dollar in cash was so paid. It is certain that after a short business career, the corporation being unable to pay its debts made an assignment for the benefit of creditors. The plaintiff in this action is the assignee. The defendants are the corporators by whom the alleged false certificate was signed. The right to recover is rested on the alleged fraud committed by means of the false representation contained in the certificate. Now the assignee succeeds to all the rights of action which his assignor had at the time of the assignment, whether matured or not. He can sue, therefore, for unpaid subscriptions to the capital stock, and for any debt due by a stockholder, as well as for debts due the corporation from others. He recovers because the corporation could recover, and all such demands are assets of the corporation in his hands. It is important,