U.S. Supreme Court
Pacific National Bank v. Eaton, 141 U.S. 227 (1891)
Pacific National Bank v. Eaton
Argued March 23-24, 1891
Decided May 25, 1891
141 U.S. 227
Delano v. Butler, 118 U. S. 634, and Aspinwall v. Butler, 133 U. S. 595, affirmed and applied to a case where a shareholder in the bank, having subscribed her proportional share to the doubling of its capital and paid therefor, took out no certificate for the new stock and demanded back the money so paid.
A subscription to stock in a national bank, and payment in fall on the subscription and entry of the subscriber's name on the books as a stockholder, constitutes the subscriber a shareholder without taking out a certificate.
This was an action at law to recover from the Pacific National bank an amount paid in as a subscription to an increase of its stock. The circumstances which induced the call for the increase are stated fully in Delano v. Butler, 118 U. S. 634, and Aspinwall v. Butler, 133 U. S. 595. The plaintiff below (defendant in error), owning forty shares of $100 each, subscribed for an equal amount in the proposed increase of $500,000, and paid in the money. Owing to the fact that some stockholders declined to take the new stock, the actual amount chanroblesvirtualawlibrary
of increase subscribed was $461,300, and, after the plaintiff's payment of $4,000, an increase to that amount only was approved by the comptroller in lieu of the $500,000 previously authorized. The plaintiff below, not having taken out any certificate of stock, demanded repayment of the $4,000, and, the same being refused, brought this action and obtained judgment for that amount, interest, and costs. The bank having become insolvent, the action was defended by the receiver, who sued out this writ of error. chanroblesvirtualawlibrary