Abstracts of Current Decisions on Mines and Mining: May to August, 1917 Page: 19
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tions, and also agreed to discharge certain liens upon the property in
consideration that it should receive a percentage of the stock, in a
company to be formed, is not subject to the charge of being usurious
and therefore invalid although the par value of the stock to be issued
was greatly in excess of the advances to be made.
Titus v. United States Smelting, Refining & Mining Co., 240 Federal 881.
STOCK SUBSCRIPTION-FAILURE OF CONSIDERATION-LIABILITY.
A stock subscription whereby the subscriber undertook in consid-
eration of 50,000 shares of stock in a gold mining company to pay
$20,000 therefor can not be enforced where the evidence shows that
of a capital stock of $2,000,000 the promotors had issued to them-
selves $1,500,000, without a dollar to the treasury and the other
$500,000 was placed upon the market, a part of which the subscriber
agreed to take and pay for, The proof shows that the stock was
without any value because of the utter absence of assets of the
corporation issuing it and that the subscriber was misled by false
statements to the effect that the corporation owned certain mines
and that in fact the corporation did not and never did own any mine
or any other property. Under such circumstances the administrator
of the deceased subscriber had the right to defend an action on the
subscription on the ground of the want of consideration.
Lindsay v. Sonora Gold Mining & Milling Co. (Missouri), 196 Southwestern 764, p.
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Thompson, Joseph Wesley. Abstracts of Current Decisions on Mines and Mining: May to August, 1917, report, December 1917; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc38745/m1/33/: accessed March 27, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.