Webster v. U. S. I. Realty Co.

Appeal from an order of the district court allowing claims of creditors against an insolvent corporation and assessing the stockholders 100 per cent on the amount of stock owned by them.

The defendant corporation was organized under the laws of the state of Minnesota in 1915 with an authorized capital of $1,000,000, to be issued in shares of the par value of $100 each. The stock was sold and issued largely in amounts of from one to five shares, on the monthly instalment plan, to people of limited means residing in the country. At the time of the commencement of the bankruptcy proceedings in…