Reichert v. Peoples State Trust & Savings Bank

Caroline Reiher, and 72 other petitioners, were stockholders of the Peoples State Trust & Savings Bank, a Michigan corporation, of Pontiac, Michigan. Owing to a shrinkage in value of the bank’s assets and the consequent impairment of its capital, the directors of the bank, on March -10, 1930, upon the order of the State banking commissioner, levied a 50 per cent, assessment on its stock. The proceedings were in accordance with 3 Comp. Laws 1929, § 11941. Petitioners paid the assessment, in the belief that the bank would thereby be enabled to continue. The bank, with its capital thus partially…