Humphrey v. Koogler

We think that counsel for plaintiffs in error have not proven a defense to the note. They would be required to show something more than the exchange of stock' for the note; they should show as well, some equitable consideration against the note in favor of the company. The rule is that the sale of stock‘to this company is prima facie valid and the burden is upon the company or their successors in title to prove the circumstances giving rise to the invalidity of the transaction. This view is expressed in the syllabus in the case of Seiders v The Gem City Concrete Company, 13 C. C. (N. S.) 481.…