Guarantee Title & Trust Co. v. Dilworth Coal Co.

Citations

• 235 Pa. 594
• 84 A. 516
• 1912 Pa. LEXIS 596

Syllabus

<p>Corporations — Mortgage—Invalid issue of bonds — Payment for stock and bonds.</p> <p>Where a corporation issues $156,000 of bonds and $156,000 of stock in payment for real estate worth only $156,000, and thereafter issues $144,000 of bonds and $144,000 of stock for which bonds and stock it receives only $144,000 in cash, so that for its whole bond and stock issue of $600,000 it has received only $300,000 in property and cash, its whole bond issue may be void in the hands of those who originally received the bonds; and if, on a scire facias on the mortgage given to secure the bonds, it appears that all of the bonds are in the hands of the original holders, the validity of the issue of the bonds is a question that must be submitted to the jury.</p>