Speedograph Corp. v. Maier

Backes, V. C.

This bill is to restrain an action at law. The defendant held in trust for one Smith certain personal property supposedly of great value. At the request of Smith he conveyed it to the *126complainant corporation for $1,214,000 of its capital stock and $1,000 in cash. The corporation was formed by_Smith and one Walbridge, with an authorized capital -stock of $1,215,000, and commenced business with $1,000 subscribed by dummy organizers. Smith and Walbridge now held all the capital stock issued for property purchased (?) and also those issued to the dummy subscribers. Smith contributed…