Merker

Defendant appeals from a judgment rescinding a sale of 100 shares of the corporate stock of the Puente Mercantile Company made by him to plaintiff on February 7, 1920.

As alleged in the complaint, the court, among other facts, found: (a) That on the seventh day of February, 1920, the defendant was, and for some ten years had been, president of said Puente Mercantile Company; (b) that defendant as such officer had full and complete charge of the business operations of the company, and was entirely familiar with the extent of its indebtedness and the business which it had been conducting and which it was then transacting, and with the extent of the profit which it was then deriving in the carrying on of the business(c) that at the time that plaintiff purchased from defendant the 100 shares of the capital stock of the Puente Mercantile Company defendant falsely and fraudulently represented to plaintiff that said 100 shares of the capital stock of the Puente Mercantile Company were of the value of at least $100 per share; (d) that said statement and representation was false and fraudulent, and (e) was known to said defendant to be so at the time it was made; (£) that said statement…