Le Warne v. Meyer

Citations

• 38 F. 191
• 1889 U.S. App. LEXIS 2805

Syllabus

<p>Corporations — Organization roe. Illegal Purpose — Rights or Stockholders.</p> <p>Individuals owning a grant from the Mexican government of lottery franchises and privileges, organized a corporation under the public improvement law of Louisiana, for the avowed purpose of constructing, operating, and developing various public improvements in Mexico, but for the real purpose of carrying on a lottery in that republic. The capital stock was fixed at §1,000,-000, all of which was issued as fully paid-up stock to subscribers who paid nothing therefor. Held, that as by the constitution of Louisiana the lottery business is prohibited unless the privilege is granted by the state, as is also the issue of paid-up stock without any payment in fact being made, the subscribers to the original stock acquired no interests which a court would protect.</p>