Boynton v. Roe

In 1880 the corporation of M. S. Smith & Co. was organized with a capital stock of $75,000, *403divided into 3,000 shares of $25 each. M. S. Smith subscribed for 200 shares. The balance was divided among Frank G. Smith, E. J. Smith, John S. Wood, and defendant, Roe. Roe subscribed for 360 shares, giving his note to M. S. Smith for $9,000, and left his stock with Mr. Smith as collateral to the note. On this note, from time to time, he applied the dividends to which his stock was entitled, until he had paid $5,000, and had received from Mr. Smith certificates for 200 shares of the stock. Roe did…