, 1873-06-30
THE LAW COURTS,
Tho Republic Cases in Minnesota
--.Judge DI1lon's Decision.
Tho c., y. & Y. n. r. Co. '. City Suit.--
Bankruptcy Mattors-.Tho
Courts III Brief.

publishes in full n report of tic caseB of JoBoph
H. Payson v. J. q. ssooyor, giving tho decision of
Judge Dillon. Tho oaao WIS brought by plaintiff
against dofendant to forco tho collection Of m
asseHsmont Of 90 per cont upon tho par value Of
ton shNroa Of tho Republic Insurance Company,
OF which ho Is tho alleged holder and owner.
Defendant admitted TINT Ills shares woro no part
Of tho million dollars originally iaaucd, but we're
part OF stock Issued In o1coaH of this amount.
Iho dofondantB counsel rested tho defcnBe on
substantially tho following grounds:
tffst-That under tho bankrupt net no right to ell
force tho liability Of Stockholders In respect to tho rn-
pa'a stock pasaca to the Assignee, bnt such liability
mist bo enforced by creditors In their own nnmcs, or
through Receiver, appointed by court Of c,lancrry
SfcoHd-Tho bankruptcy court lsaa no authority to
ako an nasossmon ca1l upon tho Stockholders but
II 1t las, tho cnll In this is mao upon an crroe-
ous baats, since It ia mao both with respect to al!-
os md loABes by ro and with respect to matters for
which, under tho fifth section Of tho charter, the
Stockholders nre not Iiable.
Third-That TIN dcfcndant'a stock, for which pay
mont s sought to bp enforccd is wholly void tho ennc
being nock which fesed In OF the 81 000-
0 by TIM Directors without the sanction of tho stock
holders, aa required by tho claEter md prior to tho
hmendod charter, to which amendment tho defendant
claims never to layo Nsseutcd.
Judge Dillon then gave his opinion ns follows:
Tho questions ariaing In tllfa caso have been pro-
S}H
sea rch nnd inoirnl forrn ronniv xitnaoa " e Nv w
oarly detor1ninninn of thc cansa r. Ioairsi 1 Tt ~
nrnceo1a In nnnn,,nco Il co,,n,n,,a .I1t ~ ai. onas
to md tia Tina to oiaborntc NJ nv nons;%oras
fanoh tha eronntu ~ ~, WIFI. H. T.. ny @
IT, ,1,a''o|:'. =. "sn ~ 'n !"us'o' 'ea'''
MtoE olHPoblilB OF tlo nrat tWo points IN favor
Or tho Assiguoo, tho Court, with regard to tho
laat, said:
7Hira-1t ia o,r o,r,op that Tim orrlpo chorts, or
tho COMPANY contcmniaic,, thct INV fncrna.n ~ ~ W.
canltn1 atncI hevond II nnI nm ohorIa hn ~ ~
by tho sorklnidcrs NJ attnGnacI froy, tho Tiron ~
tora Ii bein1 ntIml tiat in s,,nrca ~ atnn, n,s,
by Tho infnniant wnrn M n,rt " tbn a mn Hon 49,
ga,lod hut wcrn nart of the stnct iasnc ~ + r. @
ccss Of the 81 QUO 0o0 and prior to tho aucnded char
tcr OK harch 70 lsgy tnta stock would not be legal
~ l. u Ic.,on @ eoa pe TO recover to rco
crs anaov nrs m ,sga M nock y nat
uuler ts facs nroyed ia nonncd IN .et g m @ az
jection ~ "N''' w
The Legislature authorized capital Of s5ooo,ooo.
but required tho eaaen Of tho stockholders to any in
crease beyond 81 ooo ooo 1 The amount issred It no
"H NJ Iau aauia LeoSuca az .nu Snvoo. ~.
to e nf .nc rsscro d 'v ne b
It il conceded tha in meeting Of t,,s atockoldsra
Of tho original 81, GOO OF ntock duly convened.
majority might deer1ntne upon a,eh increase, and
blnd ths minority On Jan 1893, tho Directors re-
* ~ @ upon Sn OF 1no CAPITAL stock to
suhscrd,oi for II, s;t aog3. .no ugtonoahs