Donnelly v. Missouri-Lincoln Trust Co.
Supreme Court of Missouri
Appeal from St. Louis City Circuit Court. — Eon. George E. Shields, Judge. (1) The contract of June 15 was fraudulent as to prospective purchasers. This contract contemplated turning over property to the corporation hy the promoters, at a sum of two or three times its actual cost, without disclosing its real cost to the purchasers of bonds and stock. Cook on Corp. (4 Ed.), sec. 651; Line Co. y.
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Appeal from St. Louis City Circuit Court. — Eon. George E. Shields, Judge. (1) The contract of June 15 was fraudulent as to prospective purchasers. This contract contemplated turning over property to the corporation hy the promoters, at a sum of two or three times its actual cost, without disclosing its real cost to the purchasers of bonds and stock. Cook on Corp. (4 Ed.), sec. 651; Line Co. y. Case, 104 Mo. 572; Melendy v. Keen, 89 111. 395; Zang v. Adams, 23 Col. 408; Tyler v. Savage, 143 IJ. S. 79; Vreeland v. Stove Co., 29 N. J. Eq. 195; Ramsey v. Manufacturing Co., 116 Mo 330; Hornblower…
1Opinion of the CourtFerriss, J.
— Cross appeals. In 1901 several promoters, represented by one O. E. Bobinson in the transactions hereinafter detailed, formulated a plan to organize a corporation to acquire and operate properties described in the contract set out below, on all of which properties Bobinson claimed to hold options. The mineral lands had been examined by experts, who reported favorably and endorsed a prospectus issued by the promoters which showed the properties to have sufficient actual and potential value to justify the enterprise and the proposed capitalization of the company. Mr. Bobinson interested the…
2Cases cited4 opinions
- Nanson v. JacobSupreme Court of Missouri · 1887
- Hector v. MannSupreme Court of Missouri · 1910
- State ex rel. Wayne County v. WoodsSupreme Court of Missouri · 1911
- Maplegreen Realty Co. v. Mississippi Valley Trust Co.Supreme Court of Missouri · 1911
3Cited by2 opinions
- State Ex Rel. Bull Dog Auto Fire Insurance v. BlandSupreme Court of Missouri · 1927
- Beaver v. CostleyCourt of Appeals of Texas · 1915