Blair v. F. H. Smith Co.

The Chancellor:

The issuance in May, 1928, by the defendant company of fifty thousand shares of common stock to Pitts as trustee, is defended by no one who has appeared to offer testimony. Pitts himself, however, in the answer which was filed before he repudiated the authority of his solicitor to represent him, avers that the fifty thous- and shares were issued to him for a valuable consideration. He does not say what the consideration was. The company, according to its answer, knows of no consideration other than that shown in the resolution authorizing the issuance of the stock. The only…