Riverton Water Co. v. Hummel

Citations

• 175 Pa. 575
• 34 A. 851
• 1896 Pa. LEXIS 1290

Syllabus

<p>Corporation — Subscription to stock — Contract—Water company.</p> <p>The promoters of a water company entered into an agreement with a firm of contractors by which the former agreed to incorporate a water ■company, and the .latter agreed to construct the water works and take a certain amount of cash and a certain amount of stock in the corporation for their compensation. The corporation was formed, and one of the promoters subscribed for a large amount of stock He paid for a part of the stock in cash, receiving a certificate therefor. He received a cei'tificate for the remaining shares, and immediately assigned it to the contractors to whom it was handed by the secretaiy of the corporation in part payment for the plant of the water works. The corporation subsequently brought suit against the subscriber to this stock to recover the amount of his subscription. At the trial the court overruled the several offers of evidence by the corporation tending to show that the work of the contractors was defective. Held, (1) that the evidence was properly rejected; (2) that tthe corporation received from defendant the full amount of the. stock subscription; (3) that as the corporation had accepted and held the completed works, it used the stock from the defendant for payment for the works, and if the plant was defective it was the fault of the contractors, and not of the defendant.</p>