Dinsmore

The plaintiff, a judgment creditor of the Rex Midway Oil Company, now defunct, for failure to pay its state license tax, brought this action against the defendants, J. H. and Fronia May Dinsmore, alleging them to be the holders of “watered stock” of the corporation. It seeks to recover from the defendants their proportionate share of the difference between the amount at which they purchased the stock and its par value and to have the amount applied in liquidation of its claim. Judgment was entered for the plaintiff, and the defendants appealed. The defendant J. H. Dinsmore died after the appeal was perfected, and on suggestion of his death, it was ordered that the action be continued against his administratrix with the will annexed, in his place and stead.

The findings closely follow a written stipulation of facts which is brought here in the bill of exceptions. The Rex Midway Oil Company was incorporated April 21, 1910, with an authorized capital stock of $250,000, divided into 1,000,000 shares of the par value of twenty-five cents each. When organized it purchased from F. H. Lathrop a lease held by him of certain property in Kern County, supposed to be oil-bearing land. In…