Smith v. Donges

DAVIS, Circuit Judge.

This is an appeal from a decree of the District Court setting aside assessments on the stock of the bankrupt corporation, the Protexometer Manufacturing Company, Inc., against the several appellees, who petitioned the court for a review of the assessments made on the stock purchased by them of the bankrupt company.

The Protexometer Company was incorporated in 1920 under the laws of Delaware with an authorized capital stock of $1,000,-000, divided into 1,000,000 shares of a par value of $1. At the instigation of the promoters, one of whom was A. J. Clapham, dummy directors,…