Douglass v. Midland Oil Co.

The opinion of the court was delivered by

Johnston, C. J.;

This was an action by L. E. Douglass to recover $5,000 from the Midland Oil Company on a drilling contract, and also against J. M. Brown and O. L. Cully, who had guaranteed payment for the drilling as it progressed. A judgment was recovered by plaintiff against Cully, and he appeals.

A number of persons became interested in a tract of land in which it was hoped to find oil or gas, and some of them had procured a lease of the tract. It was arranged that they should form a corporation, turn in the lease in payment of a block of stock, sell…