Smith v. General Motors Corp.

DENISON, Circuit Judge.

In June, 1920, the General Motors Corporation increased its common capital stock and offered to existing common stockholders proportionally the right to subscribe to the new no par value stock at $20 per share. Under this situation Henry ( B. Smith, now deceased, was offered the right to subscribe for 14,401 shares of such new stock. He accepted this offer (as is claimed) and he paid, in accordance with its terms, $2 per share as a down payment. Before the balance came due he died, and his administrators refused to pay. This suit was brought against them in the court…