Humphrey v. McClain

Opinion op the Court by

Commissioner Hobson—

Affirming as to Stuart, reversing, as to McClain.

Previous to the year 1924 the Van Every, Horning & 'Company, a Delaware corporation, owned an oil lease in Allen county, known as the Frost lease, and proposed to sell a 1/75 interest in the lease to anyone who would pay a hundred dollars. In this way it sold sixty and one-half 1/75 interests for one hundred dollars each to different parties. By the terms of the agreement the purchasers were to furnish the money necessary for the development of the lease and, out of the proceeds of any1 sale of oil…