In re Recording Devices Co.

SATER, District Judge.

The plaintiffs, who are preferred stockholders of the defendant corporation and claim to be creditors of it on account of the hereinafter alleged fraud claimed to have been perpetrated upon them at the time they respectively purchased their stock, have petitioned to have it adjudged a bankrupt. Nine of them purchased their stock in 1918 and one in 1920. Each petitioner charges that at the time of his purchase the defendant through its officers and agents falsely represented to him that it was solvent and earning large profits and that the dividends which were regularly…