The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-12-22

TIE ALLEGED OVER ISSUE OF $l2. SOC, 900 OF PARKER
VEIN COAL COMPANY sHAREs-APPLICATIoS TO
vAckTE ORDER FOR ARREST OF THE DIRECTORS.
DEC. 2i.-John Hope IS. Hippoly,e .Hoi;, Otis ~
Jeusst, James G. Syaesy Horace b TiD6e1s, VALE H.
order Tor arrest, obtained from Judge Morris by
Judge Eimonds, on behalf OF the plaintiff under the
following eirenmstanees. Mr. Hope is owner by pur.
Parker Vein Coal Company, for which be paid 1918 IS.
The Company was incorporated by act Of the General
Assembly OF the State Of Maryland in the year 1912 anil
created for the purpose OF working mines OF cull
and ron and for vending the products Of the by
real and personal property to the amount Of $500
DIVIDED into shares Of 800 EACH The Parker Vein Com
pany was duly organized, and tue capital stock subse
shares Of 500; the Company became possessed OF a
large and valuable property, consisting OF lands and
Land. On the 9th Of June 1853 the defendants with
the exception Of james g. Clark, who acted as
cretary,) were elected directors Of the Company,
and took upon themselves the Of its bust
nessNa acting President, Jewctt Vice President
and Stacy treasurer. In addition to the lands and
ships, which IL the aggregate were valued at 5000
900 In February 1854 the defendants directors 81
the company, sold to an incorporated body called the
Caledonia Mining Company, Large number OF Of
the coal lands belonging to the Parker Vein Co npany
which were transferred without any very small
alteration. About the time the defendants trans
erred the ten steamships to company called the Par
ker Vein Steamship Company they 1.-THE efendants) be-
ng naewlse "sSseeps 2. the rarrer YEN steamship
plantn alleges that adequate consideration paid
for the transfer OF such property from corporation
to the other The Offices OF these three companies II
aprears in one in the city Of New York and
that all Of the business appertainng to these conpa
mes was transacted in the Office OF the Parker Vein Coal
Company. 1t was further alleged by the plaintiff that
and before the 1st june 1884, the defendenss
nagers Of the PARKER Vein Coal Company raudulently
issued what purporte tn be shares OF the stock of the
company, to the amount of one hundred and twenty
eight thousand shares in addition TO and beyond the
e rs . Of ns to
one million OF dollars which, ii is alleged they
counted for to the stockholders Of the Parker Vein Coal
Company. The plaintiff not bling aware OF these cir
cumstanccs became the purchaser Of certain number
Of shares Of the company 10 the nominal value VI $780,
which, in consequence OF the fraudulent issue Of stock
became vaueless Upon these circumstances being tes-
titled to Judge Morris granted the order for arrest
Mr. Vancott appeared behalf Of Mr. Jewett, aud ap
piled for vacation of the order for and denied
several Of the allegations Of the plaintiff the defendants
contend that they we're not directors Of both companies
was transacted in the oh;cs. He cted various
tborties and contendsd hatthe order for arrest should
be vacated.
Judge Roosevelt inquired ,hnt was the amount Of the
bail put upon the defendants?
Mr. Van Colt replied, two thousand dollars.
Ex-indgc Edrnonds appeared counsel behalf of
Tie paintiH 10 contend Ira = The r for arrest be-
ing vacated. lie sad the Plaut'i had applied to make
the directors u Tic company liz Die odisdaaly NH
surncd he had right TO the warrant hoil ;icnl
ball. The application agxast. Officers os Ia. Parker
money received for The tcctho.i-rs OF the .onpany
and the question was whether thsy Lad rirnt 20 main
tain the action. The learned COUNCIL hore cited ya
authorities aad conteo aided that the stockholders had
right to bring spis against the directors Individually
sor mayersation, and that they had therefore right
10 hold snch directors to BAIL The nominal capital Of
tho sompany So 000, 900, but by maneuvring
Of UNDERLINED machinery the directors managed 70 put
int circulation shares to the amount OF twelve millions
eish4 hundred thousand dollars, aid the plain
tin AYERS that LEY had received for those
IL, soc 600 shares at least million Of
doflarsthe average bsng according to the quotations
in the public papers, e1o per share. Bat he (Iudss
Ednonds) contended thai no matter what may be the
value OF those shares the fact OF the fraudulent Issue OF
IL s00 zoe 10 nowhere dexted by the defendants. He
would ask then have the stockholders who relied upon
The representations Of thsoe defendants redress
against men who perpetratsd enormous fraud A.
ths9 No matter whether the company itself 10 liable
matter Whist may bs tae rude Of ew with respect 70
the liability OF oorporatonshe conteuded that these
PERSONS Who as trustees sent forth this surrsptitious
Issue Of stock, personally Asie In concluding his
argument Judge Mncnds referred the csurt to Angel
4 Amss on Corpscations, chap. ., in which Il
states-The directors trustees money partnsfs
and the sckhoders are the osnis que trna And have
JOINT interest In an the property and ects Of the
poration, and injury that stockholders may sustain
BY fraudulent breach Of trust can, upon the gsssra
principles Of equity, be suffered to pass without
remedy
Nj. Van Colt replied and the Court reserved It's do
cison.