Eckert

Plaintiff was the assignee of C. F. Colmar and Cyclops Iron Works. Plaintiff’s assignors were creditors of the Vulcan Iron Works, a corporation. This action was brought to recover against the defendants as stockholders of the last-named corporation. The cause was tried by the court sitting without a jury and, from a judgment in favor of defendants, plaintiff appeals.

In 1926, the defendants herein were the owners of practically all of the outstanding stock of the Vulcan Iron Works, a corporation. In September, 1926, plaintiff’s assignor, C. F. Colmar, entered into an agreement with defendants whereby he purchased the stock of said defendants for the sum of $25,000. The stock was transferred into the name of C. F. Colmar and was placed in escrow pending the completion of the payments therefor. The payments were made as agreed, but subsequently C. F. Colmar rescinded the sale because of alleged fraudulent representations and brought an action to enforce the rescission and recover the purchase price paid. Said action was entitled C. F. Colmar, Plaintiff, v. M. E. Pinckard, Defendant, and was numbered action 183066 in the Superior Court of the City and County of San Francisco. Upon…