Dahmes v. Industrial Credit Co.

Upon Reargument.

Dell, Chief Justice.

This is an action to have two promissory notes executed by the plaintiffs and two real estate mortgages securing said notes adjudged null and void. Defendant filed a counterclaim to recover under an alleged guaranty.

In March 1955 the plaintiffs organized a corporation known as Northwest Recapping, Inc., for the purpose of engaging in the business of recapping automobile and truck tires. On March 25, 1955, the plaintiff Melbourne Dahmes was issued 100 shares of the corporation’s stock for which he paid $1,000. No other stock was issued. Subsequently Dahmes…