Baumchen v. Donahoe

— The State Bank of Clare was in financial distress in the year 1924. The State Banking Department had ordered a one hundred per cent assessment on the stock.' The defendant Thomas Donahoe was president of the bank and owned forty-five shares of its capital stock; the- defendant Griffin was vice-president and owned five shares; and the defendant Collins was cashier and owned fifteen shares. These three defendants were also liable on a written bank guaranty of $23,800.

They reached the conclusion that it would be necessary for them to get in some additional capital, and to that end, the…