American Snuff Co. v. Stanton

In a former suit, the American Snuff Company had endeavored to obtain a judgment against these same defendants. It had sued the Vernon Grocery Company, Inc., and was seeking to hold the present defendants liable as incorporators under that provision of section 12 of Act 267 of 1914 which makes every subscriber to the capital stock of a corporation, though not a holder, personally liable to the creditors of the corporation to an amount equal to the unpaid balance on the stock for which he has subscribed. The defense in that suit, as it is in this, was an attack on the legality of the…