Dunham v. Natural Bridge Ranch Co.

In' 1928 defendant Bruffey owned certain ranch real estate and personal property, sold an undivided one-half interest in it to plaintiff for about $23,000, and he and plaintiff organized the defendant corporation, to which they transferred the property. All of the corporation’s 1,000 shares of stock were issued, 500 shares to plaintiff, 499 to Bruffey, and one to a third person, all of the three stockholders being made directors. Bruffey was employed as manager and he and his two sons were paid $250 per month and their living expenses for their services. The operations were unprofitable and…