9 Mass. 423 (Mass. 1812), Little v. Obrien
|Citation:||9 Mass. 423|
|Party Name:||Edward Little v. John Obrien|
|Attorney:||Putnam and Banister for the plaintiff, and Davis (Solicitor-General) and Story for the defendant.|
|Court:||Supreme Judicial Court of Massachusetts|
Assumpsit by the plaintiff, as endorsee of a promissory note for 500 dollars, dated December 1, 1808, subscribed by the defendant, payable in sixty-five days to Joseph Obrien or order, and by him endorsed to the plaintiff.
The action came before the Court on a case stated by the parties to the following effect, April term, 1810: --
The Union Fire and Marine Insurance Company of Newburyport was incorporated by an act passed February 27, 1807, 1 by the ninth section of which it is enacted "that the said company shall not, directly or indirectly, deal or trade in buying or selling any goods, wares, or merchandise, whatsoever; and the capital stock of said company, after being collected at each instalment, shall, within six months, be invested in the funded debt of the United States, or of this commonwealth, or in the stock of the United States Bank, or of any incorporated bank of this commonwealth, at the discretion of the president and directors of said company," and, by the tenth section, "that fifty dollars on each share in said company shall be paid within sixty days after the first meeting of said company, and the remaining sum due on each share within one year afterwards, at such equal instalments, and under such penalties, as the said company shall direct."
On the 30th of April, 1807, the president and directors of the company assessed fifty dollars on each share, and ordered the same to be paid on or before the 2d of June then following; on which day, it being agreed to receive notes and other securities in payment of the said first instalment, the president and six of the directors attended, to examine and accept or reject such notes and securities as should be offered in payment as aforesaid.
The defendant, on that day, being a subscriber for twenty shares in the capital stock of the company, gave his promissory note for 1000 dollars, payable in sixty days from the date, the consideration of which was his proportion of the said capital stock; which note, together with an assignment of bank stock to a larger amount than the note, and a power of attorney to sell the same for payment of the said note were accepted as payment of the defendant's proportion of the said instalment.
On the 30th of November, 1807, a second instalment, of like amount with the first, became due, which was paid in a similar manner. The notes...
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