27 S.W.2d 515 | Ark. | 1930
In 1924, appellant signed a subscription agreement for the purchase of $250 of the capital stock of appellee. The subscription agreement provided that the amount might be paid in installments, and that upon full payment of the purchase price, "the Fair Association will issue and deliver to the undersigned the number of shares hereby subscribed for, which shall he fully paid and nonassessable." Appellant, either at that *749 time or later paid $50 which was credited thereon leaving a balance of $200. On February 14, 1925, he executed and delivered to appellee his promissory note for such balance, payable October 1, 1925, with interest from date at 8 per cent. to maturity and thereafter at 10 per cent. No part of this note has ever been paid, and forms the basis for this litigation. Judgment was rendered against appellant in the municipal court and in the circuit court on appeal.
The contention relied upon here, as also in the circuit court, is that the note is void because given in payment for stock in a corporation, as being in violation of 8, art. 12, Const. 1874, which provides: "No private corporation shall issue stocks or bonds, except for money or property actually received or labor done," etc. Our cases, Bank of Commerce v. Goolsby,
The prohibition of the Constitution is directed against the issuance of stocks or bonds by private corporations except for money, etc. "No private corporation shall issue stocks or bonds except for money," etc. The corporation here has not issued appellant any stock, and is not going to do so except for money. This is the only question presented by the briefs.
The judgment of the circuit court is correct, and must be affirmed.