Roskay v. Niles Creamery Co.

In 1929 the capital structure of the Niles Creamery Company consisted of 55 shares of common stock having a par value of $100 each, 27% shares of which were owned by plaintiff Charles Roskay, and the other 27% by defendant William Saathoff. One share of the holdings of Roskay was in the name of his wife.

On July 29, 1929, Roskay gave defendant Albert G. Rooks an option to purchase his holdings for $3,000 cash and $3,000 of seven per cent, preferred stock, which was to be issued later pursuant to a proposed recapitalization of the company, agreeing “to accept said A. G. Rooks’ personal note…