Rossi

This action was brought to recover money paid by the plaintiff to A. Y. Jedlick and Harry H. Heim as a preorganization subscription to the capital stock of a corporation. The action was dismissed as to John Doe and the Hawk Company. At the time the money was paid, the defendants gave to the plaintiff the following receipt:

At the time this instrument was executed, no permit to sell stock in the proposed corporation had been issued. Plaintiff’s subscription for stock was not mentioned in the articles of incorporation, which were later filed under the name of Jedlick-Heim Co. The said Jedlick-Heim Co. did not receive its charter until October 1, 1926. Some time later application was made to the commissioner of corporations for permission to issue stock of the corporation in exchange for the business which had been previously conducted by Jedlick and Heim. A conditional permit was issued, which provided that the stock should be placed in escrow until it should be ordered released by the corporation commissioner. Such a release was never ordered, and the stock was never delivered. A number of oral demands were made by the plaintiff for the return of his money, and on October 18,…