Schumann-Heink & Co. v. United States National Bank

This is a civil action growing out of the same state of facts involved in People v. Schumann-Heink, 98 Cal. App. 225 [ 276 Pac. 625 ], and in People v. Schumann-Heink, 106 Cal. App. 81 [ 288 Pac. 838 ]. Appellant Schumann-Heink and Co., Inc., was a corporation engaged in buying and selling securities and general brokerage. Henry Schumann-Heink was its president, spending his time largely in and out of its Los Angeles office. One Clare was its secretary and treasurer and in charge of its San Diego office. Schumann-Heink and Clare were both directors. Pursuant to a discussion between Schumann-Heink and Clare appellant corporation bought in June, 1927, six shares and in July, 1927, six more shares in a -pool known as the Security Bank Stockholders Association. Two certificates of such pool were issued for the shares bought, each running to Clare and each certifying that he was the beneficial owner of six shares of the capital stock of the Security Commercial and Savings Bank of San Diego. The purchase was made in the regular course of appellant’s business and with appellant’s funds. When appellant bought stock its custom was to have the same issued in the name of some one of its…