Goodall

The defendant Jack was, during the times mentioned in the complaint, a stockholder of a corporation called the West Coast-Land Company, and this action is brought to recover the proportionate share of defendant as such stockholder of a debt of the corporation alleged to have been incurred to one J. R Knowles for money borrowed from him by the corporation on the fifteenth day of May, 1894. In his answer the defendant pleads, among other things, that the al leged cause of action is barred by the provisions of subdivision 1 of section 338 and section 359 of the Code of Civil Procedure. Judgment went in the court below for the defendant, and plaintiffs appeal from the judgment and from an order denying their motion for a new trial.

The court found, among other things, that the alleged cause of action was barred by the provisions of the code above mentioned; and the only point discussed by counsel is whether or not that finding was correct.

It appears from the evidence that in May, 1890, the corporation above mentioned incurred an indebtedness to the plaintiffs herein of a sum of money amounting to nearly two hundred thousand dollars, for which it gave to the plaintiffs four…