Gearhart v. Standard Steel Car Co.

Citations

• 223 Pa. 385
• 72 A. 699
• 1909 Pa. LEXIS 546

Syllabus

<p>Corporations — Issue of stock — Payment of stock — Payment for stock out of earnings — Act of April 29,1874, P. L. 73.</p> <p>A contract by which a person agrees to enter the employ of a corpo- » ration in consideration of a certain salary per year, and the setting aside to him of stock of the company of an amount stated to be paid for out of the earnings of the company, cannot be enforced so as to compel the company to issue or set aside the stock on the terms stated. Such a contract violates the Act of April 29, 1874, P. L. 73, which provides that “no such corporation shall issue their bonds or stock, except for money, labor done, or money or property actually received, and all fictitious increase of stock, or indebtedness in any form, shall be void.”</p>