Crum's Appeal
Crum's Appeal
Opinion of the Court
The opinion of the court was delivered, January 3d 1871, by
— This is a suit growing out of a voluntary association of individuals under the name of The Perseverance Oil Company, entered into during the months of August and September 1866, for the purpose of prosecuting the oil business. This bill was filed by the plaintiffs to which the defendants filed an answer. A master was appointed, who filed a clear and able report which was sustained by the court except in one unimportant particular, and the bill dismissed at the costs of the complainants.
These facts are distinctly found by the master. This disposes' of the claim for $1200 upon which this bill is based.
The only other matter is a small claim of one of the plaintiffs of $38 for travelling expenses, which if correct should' be recovered before a justice of the peace, and not made a peg to hang a suit in equity on, with all its cumbrous and expensive proceedings.
Decree affirmed at the costs of the appellant.
Reference
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- 2 cases
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- Syllabus
- An oil company was formed, with $4000 capital in shares, which was not to be increased without the consent of a majority of the stockholders, no authority was given to the managers to borrow money. The president bought a lot for oil operations and he and others borrowed money for its payment, on their individual credit; the managers passed a resolution ratifying the transaction, money was paid by the individuals borrowing it. Held, that the managers having no authority to' borrow money, or to increase the capital, their ratification was ineffectual and the other stockholders were not bound to contribute to the payment of the money.