McAllister v. American Hospital Ass'n
Oregon Supreme Court
From Multnomah: William N. Gatens, Judge. Statement by Mr. Chief Justice Eakin. This is a suit by E. S. J. McAllister against the American Hospital Association, a corporation, George D. Peters, E. A. Marshall, F. S. Smith and Max G. Cohen, as stockholders of said corporation.
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From Multnomah: William N. Gatens, Judge. Statement by Mr. Chief Justice Eakin. This is a suit by E. S. J. McAllister against the American Hospital Association, a corporation, George D. Peters, E. A. Marshall, F. S. Smith and Max G. Cohen, as stockholders of said corporation. Plaintiff herein obtained judgment against the American Hospital Association, a corporation, in the sum of $629.55, and brings this suit against certain stockholders of the corporation, alleging its insolvency, for the purpose of collecting from them the amount of the judgment to the extent of their unpaid stock…
1Opinion of the Court
Opinion by
Mr. Chief Justice Eakin.
1. The voting of this 15,000 shares of stock to Jewell, although referred to as a bonus, was, in fact, a gift, and exceeded the amount of the unsubscribed stock. This act was beyond the power of either the stockholders or directors, at least as against the creditors of the corporation. The promoters of a corporation cannot issue to *534themselves capital stock of the corporation as a gratuity. The capital stock represents the capital in the business, stands as the guaranty to the public of its ability to meet its obligations, and is not subject to disposal at the…
2Cases cited14 opinions
- Whitman v. Oxford National BankSupreme Court of the United States · 1900
- Great Western Mining & Manufacturing Co. v. HarrisSupreme Court of the United States · 1905
- Hospes v. Northwestern Manuf'g & Car Co.Supreme Court of Minnesota · 1892
- Harrison v. Remington Paper Co.Court of Appeals for the Eighth Circuit · 1905
- Clark v. BeverSupreme Court of the United States · 1891
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3Cited by8 opinions
- Sargent v. American Bank & Trust Co.Oregon Supreme Court · 1916
- Shipman v. Portland Const. Co.Oregon Supreme Court · 1913
- American Life Ins. v. FergusonOregon Supreme Court · 1913
- Smith v. SchmittOregon Supreme Court · 1924
- Rasor v. West Coast Development Co.Oregon Supreme Court · 1920
3 more not listed; retrieve them via the Exa API.