Cox v. Updegraff

On Petition for Rehearing

(14 P. (2d) 280)

BELT, J.

It is urged that all creditors subsequent to the issuance of the fully paid and nonassessable stock as authorized by the Securities Commission of the state of South Dakota are bound to take notice of such order and, therefore, it can not be said that such creditors extended any credit to the corporation on the faith of the stockholder’s liability for further assessments. It seems to the writer that counsel for defendant fails to give effect to the adjudication of the Minnesota court that the Federal Crushed Stone Company was liable for double…