State v. Louisiana Debenture Co.

Citations

• 51 La. Ann. 1795
• 26 So. 592
• 1899 La. LEXIS 626

Syllabus

<p>Syllabus.</p> <p>The debenture scheme exhibited in the defendant’s charter being the sale of certificates redeemable at the expiration of seven months, with fifty per cent. in addition to the cash paid in, and exclusively from sixty-five per cent. thereof, is impossible of accomplishment; and must, necessarily, result disastrously to the investors in such certificates.</p> <p>Instead of the expectation being realized of all debenture-holders being fully paid with fifty per cent, profit upon their investments, the certainty is that at the expiration of the six years’ period fixed, there will be a large proportion thereof unpaid and unprovided for.</p> <p>The State has an interest in annulling the charter of such a corporation.</p>