The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-03-26

o;ven for stock issued to the Keokuk Pack
et compauy. and that the company held q
valid title to the stock, which was by it |
transferred to the defendant, Davidson.
When the organization Of the Keokuk |
Northern Line Packet company resulted in |
the discontinuance of business on the part |
of the old companies which became stock
holders, such organization was not con-
solidation of the old companies, The
Keokuk Packet company sold its boats to
the new organization. in which the North
western Union Packet company, among
others, became a stakeholder. but these
two companies did not thereby become con-
solidated.
The subscription of stock on the part OF
1.-The Keokuk Packet company was maze 10
good faith. in furtherance, as the evidence
Shows. of what must have been regarded
as the best interests of the company.
The corporation, if not insolvent was
crippled aud overburdened with debt
3 long continued and active opposition had
4 reduced its revenues and increased its ex-
> penditures. The charter of the company
,, was about to expire By limitation.
While, under ordinary circumstances,
+ the Keokuk Packet company could not
d Lawfully become stakeholder in another
icorporation. yet for the purpose of closing
!, its affairs, the company had lawful author
ity to sell its property and receive in pay
y ment therefor stock in another corporation
It 1t must be conceded that the proceedings
o of the board of directors of the Keokuk
Packet company in regard to the sale 81
:, the boats to the new company and the sub
tscription of stock, were not free from lr
7, regularity, yet, the evidence shows tina
IL the proceedings were had in good faith
IT that while irregular, the proceedings re
At ceived either the express consent OF th'
se stockholders, or were had under clrcum
Is stances which showed an inclination ant
ne willingness on the part OF the stakeholder
g. TO adopt the acts of the directors at al
rn events, and under whatever circumstances
na The evidence shows that the keoku
he Packet company had been managed &c
&C. years by few individuals, and that sue
is management had the confidence OF IN
ut stockholders, who seem to have taken OF
h. little interest in the affairs of the corpora
a ton, other than the collection OF dividend
ON lnpon their stock. Conclusion reache
/, a from, the careful review of the evidence
oh and before indicated, that the subscriptlo
he nv John s. MaCune, in behalf OF tn
pg Keokuk Packet company for l,520 share
,as of stock of the Keokuk Northern Lin
adj Packet company was lawful; that II
mi, stock which was therefore issued TO Il
nee Keokuk Packet company was SO issue
mas upon valuable and sufficient consider
it. ton. and that the Keukuk Packet col
PAW were the owners of such stock up
r0l its issue-holding thereto valuable al
= complete title,
5, The main question having been q
Tc- termined adversely to the plaintiff, t
court adheres to the position taken at G
hearing under the motion-that the cont
tions upon which, and the circumstane
Tim under which the stock was sold to defer
ant, Davidson,by the Keokuk Packet co
pany are matters of no Importance In Z
controversy Being owners of the str
and holding it under lawful and co
,uk- pete title, the Keokuk Packet compa
7 ia might make such disposition OF the sta
any as to them seemed expedient. Ii
y to stock was sold at price far below
pay market value if it was transferred to
the wilson even by way of gift; it it was ira
the ferred to him under circumstances VIII
the must have secured to him controli
this voice in the affairs of the Keokuk North
Line Packet company. the court Is una
rect to see that plaintiff is entitled to any
new lief, because of these transactions.
8 re- Wherefore the motion to dissolve thu
lture lterlocutory restraining order is sustain
IS j. The main issues of the case are yet
!, re- be disposed of. aud the matter is set
or IN hearing before Judge Kun, April D..
stock Louis Republican, oath.