Hulse

This is an appeal by defendants Hulse, Abbott, and Little from a judgment rendered against them in favor of plaintiff. The legal question involved is that of the obligation of promoters of a projected corporation to repay, upon an abandonment of the scheme, money received from subscribers for shares to be issued upon organization of the corporation. We have not had the benefit of any brief from respondent, and must, therefore, deal with the points advanced by the appellants in our own way.

The complaint is in three counts, the first to recover on a subscription made by plaintiff himself; the second on a subscription made by D. L. Zinn, who assigned his claim to plaintiff; the third on a subscription made by P. P. Stavron, whose claim was likewise assigned to plaintiff. Only part of Zinn’s subscription having been paid in money, and that having been returned to him, the trial court found in favor of the defendants on the second count, and therefore no further reference will be made thereto.

The facts in the ease are simple. The defendants Hulse, Abbott, and Dye had been interested together in certain oil ventures, and in February, 1919, Hulse secured certain options for oil…