Eastern Products Corporations v. Tennessee Coal, Iron & R.

This suit was brought to collect $1,319,100 damages for breach of an executory contract of sale for future delivery of pig iron at a consideration of $485,000. The chancellor found that the assignor of complainant, a Tennessee corporation, at the time of the execution of the contract sued on had but $800 subscribed of a capitalization fixed by its charter at $2,000,000, and was therefore not lawfully authorized to enter bindingly into such a contract, and dismissed the bill.

In March, 1916, a charter was duly granted by the State of Tennessee to Chattanooga Steel Company, as a mining and…