Page:Federal Reporter, 1st Series, Volume 3.djvu/772

 STATE INS. CO. OP MISSOURI V. REDMOND. 763 �The bankrupt subscribed for ten shares, of $100 each, to the capital stock of the plaintiff. The charter of the Com- pany, at the date of this subscription, contained thia provis- vision: "For the better security of policy holders the said Company may add- a stock capital, not legs than $100,000, nor more than $600,000, which may be increased by a ma- jority vote of the stockholders to any amount not exceeding $1,000,000. Said stock shall be divided into shares of $100 each, and at least $20 shall be paid in cash on each share, and the remaining 80 per cent, shall be secured by mortgage on real estate, worth at least double the amount secured, or by a note with two responsible sureties, or by deposit of United States or other approved bonds or stocks." �Article 23 of the by-laws of the company provided that "stockholders of the State Insurance Company of Missouri will be required to pay 20 per cent, in cash on the amount Bubscribed, as foUows, viz. : Ten per cent, in cash at time subscription is made, 5 per cent, in thirty days thereafter, and 5 per cent, in sixty days thereafter," and the remaining 80 per cent, to be secured in the manner provided in thô charter. �The subscription contract signed by the bankrupt contained a provision on the subject of the payment of the subscription identical with the by-laws above quoted. �The bankrupt paid no part of his subscription in cash at the date of subscribing, and has never paid anythingthereon. Of even date with his subscription he executed two notes to the company : one for $200, being 20 per cent, of the amount of his subscription; and one for $800, with one surety, for the remaining 80 per cent. The latter note recites that it is given in consideration of a "certificate of stock. No. 542, for ten shares of the capital stock" of the company. �The proof of debt is based on the note for $800, and alleged calls made thereon amounting to $700. The bank- rupt never received the certificate of stock mentioned as the consideration for the $800 note; the company witholding it on account of the non-payment by the bankrupt of the $200 note given for 20 per cent, of his subscription. ����