Chapple v. Jacobson

Wilbert C. Chappie, the plaintiff, is a banker at Greenville. Defendants Wilmarth and Noorthoek reside in the city of Grand Rapids, and defendants Jacobson and Moone are residents of the city of Detroit. All of the defendants were directors of the National Hardwood Company, a company formed by Hoffman, Day, and defendant Jacobson, to carry on lumbering operations in the State of Oklahoma. The company issued $1,250,000 of eight per cent, bonds. Plaintiff purchased at different times about $40,000 par value of them. After operating two years the company went into the hands of a receiver.…