In re Universal Rubber Products Co.

SCHOONMAKER, District Judge.

We have for review an administrative order of a referee in bankruptcy, levying an assessment against stockholders to pay debts.

The referee found that the entire common stock’ of the bankrupt corporation, $1,-000,000 par value, and $100,000 par value of preferred stock, had been issued to J. B. Topham,’the promoter of the company, who, on its organization, became its president, without anything substantial being paid for it. The corporation was chartered by the state of Delaware on May 26, 1919. The incorporators met that day, adopted bylaws, and elected J. B.…