Keller

Plaintiff, the owner of a number of mining claims in the state of Arizona, transferred the claims to the White Hills Mining Company, a corporation, of which he was manager, and received about 750,000 shares of the stock of the corporation in exchange therefor. This stock was placed in escrow under permits from the corporation commissioners of California and Arizona, by which he was authorized to sell the stock to the public. The record does not disclose the terms of the escrow nor of the permits under which plaintiff was authorized to sell. Defendant Lile and one Colton were college students making a survey upon the claims of the company. A question arose as to whether Lile and Colton would remain at work until the survey was completed, and plaintiff promised them each a bonus if they would stay with the work until its completion. The survey was completed and Lile left Arizona. Thereafter, a certificate representing 5,000 shares of the capital stock of the company was mailed by plaintiff to Lile. A similar certificate was mailed to Colton. Lile caused the certificate to be delivered to defendant Wagy to be sold. The stock delivered to Lile was treasury stock of the company, but…