Donner v. Donner

Citations

• 217 Pa. 37
• 66 A. 147
• 1907 Pa. LEXIS 651

Syllabus

<p>Equity — Accounting—Profits—Trusts and trustees — Corporations.</p> <p>Where a corporation is organized with a large capital, and the organizers pay in in cash only one-tenth of the capital stock, and thereafter one of the organizers sells to his brother a portion of his stock holdings at par, paying himself with moneys which he had received from his brother for investment, and subsequently the organizers develop the company by means of moneys borrowed on the company’s notes with their own indorsements, and not by paying up the capital, and thereafter the company, together with certain subordinate companies which it owned, are sold at a very large profit, the organizer who sold stock to his brother must account to him for profits received in proportion to their respective holdings of capital stock, and not in proportion to the funds furnished by the brother to all the money invested in the enterprise whether paid on account of stock, or borrowed on the company’s notes.</p> <p>Equity — Master’s findings of fact — Accounting—Review.</p> <p>On a bill in equity against a trustee for an accounting, the appellate court will not review a master’s findings of fact that the defendant sold certain bonds at par, and not at a discount, where such findings are confirmed by the court below, and are based upon admissions of the defendant, the papers in the case, and other competent evidence.</p>