National Bank v. White

The opinion of the court was delivered by

Smith, J.:

This action was brought to collect on a promissory note for $4,500. Defendant prevailed. Plaintiff appeals.

Prior to November, 1926, the Central Motor and Finance Corporation, through its president, Ivor MacFarlane, and Elmer Son, its agent, sold to appellee $2,500 of its preferred stock. At this time the corporation was hopelessly involved and known to be so by both Mr. MacFarlane and Mr. Son. They represented to appellee, for the purpose of inducing him to purchase this stock, that preferred stock in the corporation had been paying and was…