In re Dissolution of Owatonna Co-operative Mercantile Co.

Appeal from an order levying a 100 per cent assessment on the capital stock of an insolvent mercantile corporation.

The charter limited the company’s indebtedness to $40,000, notwithstanding which, at the time the receiver took over its assets, the total indebtedness was upwards of $52,000. There is no suggestion that any of the excess of $12,000 was not binding upon the corporation. It represents borrowed money received and used by it.

The receiver has paid to the creditors a dividend of $27,000. (For convenience we are speaking in round figures). So there is still due creditors about $25,000.…