Positype Corp. of America v. Mahin

MANTON, Circuit Judge.

This action is for the breach of a contract to subscribe for 500 shares of the first preferred stock of the appellee corporation. Appellant agreed to pay $50,000 for this stock, which carried with it bonus of 1,000 shares of common stock. There were 19 signers to the subscription contract, who were to receive two shares of common for one share of preferred stock, and the plan was to sell to the public one share of preferred and with it a bonus of one share of common. The sale to the public by the subscribers was to be made through their agent, a syndicate manager, at not…