McPherson v. Commercial Building & Securities Co.

I. The Commercial Building & Securities Company, which will be referred to hereinafter as “the company,” was organized in 1920, under statutory provisions, with a capital stock paid up in excess of $300,000. Its purported business was to buy, improve, and sell real estate, and for that purpose, to borrow money upon its bonds: Its plan of securing its bonds was to put into the hands of a trustee specific securities, at estimated values, and to issue bonds for designated amounts against said deposits of securities, which securities were to be held by the trustee as security exclusively for the…