Cartwright v. Braly

In March, 1923, the First National Bank of Athens, Ala., having its capital impaired, was reorganized under orders of the Federal Bank Examiner. A creditor bank took over $25,000 doubtful paper at par, the existing capital stock was wiped out by formal foreclosure, and new cash 'capital of $50,000 subscribed.

In May, 1926, the reorganized bank failed and went out of business. The plaintiff, N. C. Braly, took $1,000 of the new stock, which was lost to him, and he was required to pay the further sum of $1,000 by virtue pf his statutory liability under the federal banking laws. Thereafter he…