Independent Democrat. [volume] (Canton, Miss.) 1842-1844, 1843-07-01
From The Free Tradcr.

IVA yin -A4' - . - - - - ~ DsNILa'
A case was tried in Adams Circuit court
at the May term thereof, upon the gNrnsh.
mcnt of Il stakeholder in the Mississippi
Rail Road Bank, By the executors Of To
bert Y. IIaync, who had judgment
against s1id bank. The stakeholder,
BcanchGmp, contested his indeb;cdne to
sail company, upon the ground thai the
chatter Of the bank req tired a cerlaia por-
ton Of the stock to be paid for in cash al
the time of subscribing; lhat instead of DO
Ing this, be subscribed for HE stock, gave
his note for the amount Of the call, and
that was discounted in the i sGes of the
hank, checked out and plil in FOR h IS
stock. II w3s upon Tbs note the defend
ant was gnrnishcd. lis counsel, Mcssrs.
addison, Maadevile and Sloan, p;odcccd
law upon law and Goci-i upon dec sion,
''hko PoIion on Ossa piiod," to sustain
their caHsc, in which they were entirely
successful. Their in,!ruyton,, though
drawn up hastily, cover the Whole ground,
and Judge Cage gave them to the jury,
which found in accordance herewith.
There are few banks in The State. Kite
ly chartered, that have not violated the
conditions on.whiclI they were incorpora-
ted, by tie manner Of raging for stock, by
stock notes instead Of cash. The sub
scribers viii OF course contest them when.
ever they are endeayoroed to lie enforced
Unless the Supreme court decide contra
nv to all law and precedent, 10 sustain It's
bias in lovor Of corporations, this decision
viii be sustained. The following are the
instructions to which we have referred:
"If the jury believe that the note sued
on was discounted Ivy the company upon
the express stipulation that the proceeds
should be checked cut and applied TO the
payment of stock in said company, in the
branch at Raymond, and for no other pur-
pose, then the whole contract was in vic.
Iation of the charter of The bank and the
not esucd on is void.
I'the jury believe that Ten dollars per
share was not paid into said company at
the time of subscribing at the said branch
at Raymond, either in specie or bank
notes, but that in lien thereof the notes OF
the subscribers we're received with the
understanding that The Mississippi Rail
Road Co. should discount said notes and
receive the checks OF the subscribers ia
lieu of money or bank notes, it was a.
plain evasion of the terms Of the charter,
amounted TO no legal subscription for the
stock; hat the branch at Raymond did
not 90 legally into operation or the sub
scribers become legally entitled to any
stock; that there is failure Of consdera-
ton Of the notes and defendant not liable
for them.
In pursuance of the terms Of the char
ter, the defendant could not have become
stakeholder in said Mississippi Ran
Road company, or incurred any liaIi.liy
as such, except by subscribing foi stock
and paying at the time oil subscribing, ten
per cent of the amount of stock so by him
subscribed, either in specie or in the notes
of such banks as the directors may have
consented to receive-un.ess therefore the
jury believe from the evidence before
them, that these requests have teen iuly
complied with on the part OF the deten-
dant, they cannot find against him on the
score of his being stakeholder.
When an Incorporating act requires
Subscribers for stock to pay at the time OF
subscribing a ceftain sum IN cash on each
share, subscriber who does not pay that
sum when he subscrihes, is not so far
member Of the cooperation as TO be Liable
in an action against him to recover the
amour, Of HE stock, therefore, ii The jury
believe from the. evidence, that the defen-