Morgan v. Ruble
Oregon Supreme Court
From Marion: William Galloway, Judge. In Banc. Statement by Mr. Justice Benson. This is a suit by W. H. Morgan, a creditor, against John-Ruble, Al. Walling, J. H. Brigham, S. B. Savage, John Walling, Tracy Walling, Harry F. Savage, C. J. Crandle, J. M. Spong, J. F. McKinley, W. F. Franklin and William Wilkins, to enforce the individual liability of stockholders in an insolvent corporation upon their unpaid subscriptions to capital stock.
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From Marion: William Galloway, Judge. In Banc. Statement by Mr. Justice Benson. This is a suit by W. H. Morgan, a creditor, against John-Ruble, Al. Walling, J. H. Brigham, S. B. Savage, John Walling, Tracy Walling, Harry F. Savage, C. J. Crandle, J. M. Spong, J. F. McKinley, W. F. Franklin and William Wilkins, to enforce the individual liability of stockholders in an insolvent corporation upon their unpaid subscriptions to capital stock. Tbe Lincoln Stove Company, having been duly incorporated with the defendants as stockholders, executed and delivered its promissory note to plaintiff, which…
1Opinion of the CourtJustice Benson
1. There is but one question involved in this case, and that is as to whether or not the fact that the pro*643moters of a corporation made false and fraudulent representations to the defendants to induce them to become stockholders can be relied upon to defeat the claim of a creditor. It is true that the answer alleges that plaintiff knew of these facts and fraudulent representations, but we find no evidence in the record to support the allegation. It is perfectly clear from the evidence that if there was anything wrong in the procuring of defendants’ stock subscriptions, the plaintiff was…
2Cases cited2 opinions
- Howard v. GlennSupreme Court of Georgia · 1890
- Stewart v. RutherfordSupreme Court of Georgia · 1885
3Cited by5 opinions
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- Smith v. BronaughCourt of Appeals for the Ninth Circuit · 1923
- Smith v. SchmittOregon Supreme Court · 1924
- Crocker v. GentryOregon Supreme Court · 1928
- Gordon v. RalstonOregon Supreme Court · 1937