Crittenden v. Credit Foncier Des Etats Unis

In the early part of 1912 certain persons in Paris, France, and San Francisco, decided to form a corporation, the chief object of which was to borrow money in Europe and lend it in America. At that time the interest rate in France was approximately two per cent lower than in the United States. Henry Brunner, who lived in Paris, but who had formerly been a resident of San Francisco, was mainly responsible for the plan. He interested Tilden C. Tognazzini, of San Francisco, in the formation of the corporation. William C. Crittenden (appellant herein), a practicing attorney in 'San Francisco, heard of the proposed enterprise, came to Tognazzini and requested participation therein. After some discussion, it was agreed that Crittenden should become one of ten incorporators to be selected from San Francisco. Appellant agr&|d to purchase 400 shares of the capital stock, and later subscribed therefor, paying $9,643.20. The corporation was organized in Paris in November, 1912, with Brunner and Tognazzini as members of the board of directors. The name of this corporation was Credit Foncier des Etats Unis. Just prior to the formation of that corporation, the organizers thereof had caused to…