California National Supply Co. v. Dinsmore

The plaintiff, a judgment creditor of the Rex Midway Oil Company, now defunct, for failure to pay its state license tax, brought this action against the defendants, J. H. and Fronia May Dinsmore, alleging them to be the holders of “watered stock” of the corporation. It seeks to recover from the defendants their proportionate share of the difference between the amount at which they purchased the stock and its par value and to have the amount applied in liquidation of its claim. Judgment was entered for the plaintiff, and the defendants appealed. The defendant J. H. Dinsmore died after the…