The New York herald., 1877-11-17
Important Injunction Granted by Judge
Gilbert, of the Supreme Court.
DIVIDENDS ON THE PREFERRED STOCK.
How the Common Stockholders Expect to Share
Profits Equally with the Preferred.
COMPLAINT AND INJUNCTION ORDER


end. That action, will be remembered brought
by NJ. Kent a holder OF $500 shares Of preferred
stock TO restrain tho issuing Of further preferred
shares, and tho injunction obtained by Mr. Kent for
that purpose was sustained by the Supreme Court,
General Term II would sccm, however. that tho
holders Of the common stock arc still determined
to test the matter further in the courts Mr.
William s. Hoyt holder OF 1000 shares
OF common stock, behalf of all others
similarly situated obtained from Judge Gilbert yester-
day, through his attorneys, Messrs. Brtton, Stman
Hubbard injunction ordering that the Quicksil-
yer Mining Company be restrained from paying to the
holders OF the so-called preferred stock any moneys
whatever or interest dividends upon tho so-caed
preferred stock In such dividends as tho
fcndant may pay upon its common stock, and also
from creating attempting to create issue any ad-
ditional so-caled preferred stock The injunction was
granted upon the complaint and upon affidavit Of
William $ Hoyt aud was served upon David Mahoney,
Secretary OF the Quicksilver Mining Company at his
sncc No. 10 Nassau street, yesterday afternoon Tho
following is the complaint
TIE COMPLAINT.
Tho complaint OF the plaintiff above named, who
brings this action in his own bohalt aud behalf OF
all others similarly situated who may come in and
themselves parties thereto, shows to this Court
Nrst-That the above named defendant is 4 Corpora
t,oa s duiy chartered organized and existing under
oi IT., The e state ,sss Of New YOrs, !. passed
10 sspz 9aa rh IS pas
this complaint and having lis principal place OF bus-
hess ID the city Of New York.
o said act tho said oeicndant duly aud adopted
tho bylaws, copy Of which is hereto annexed marked
sequently thereto the said defendant ID February,
1870. by the vote OF part only OF its stockholders,
% Inc ssa SO that No
G, heretofore annexed and made part Of this com
plalnt and also passed the resolutions forth in
Taird-rbat plaintiff Is the owner OF 900 shares Of
tho Capital stock OF the said defendant and forming
part OF tho capital stock for which certificates wore
issued by said defendant prior to February 1870,
s.a,,ng the capital to be $4,000, 700, divided into
no.v hos cor,cass not rmcn M M sa'u
1enaant to him. Ns
Fo4rtA-rhas in pursuance Of said bylaws as
amended as Aforesaid and OF the resolutions as set
forth in exhibit c. The board Of DIRECTORS Of said de-
tenoant issued circular embodying the said amended
bylaws and said reso outions aud caused the 10
b. delivered prior. TO the 18TH day of April 1870 to
some but not all, of the stockholders OF said deiend
ant At tss-@
FtlA-That after the adoption Of said amended by.
laws and said resolutions the of defend
ant opensl books at the Office Of the said company
New York 10 receive subscriptions TO the so-called
"prclefred stock" hereinafter. mentioned aud the
owners OF tho capital stock Of said defendant to the
amount Of 42sl3 shnres surrendered to 1t
at The city OF New York their said shares
aud paid to the said defendant tho
surrendered and IN exchange therefor tho said do
Iendant issued ana delivered to its so
their stock as aforesaid an equal number
OF shares Of stock designated by ~ as ..preferred
STOCK, the certificates tor which were OF the form
and tenor shown by the paper writing hereto annexed
and marked exhibit u. and made part OF this CON-
paint, and thereafter the capital stock OF said
pany was designated by the said defendant common
-Sra.-Plaintlr further shows that the holders Of
the said called .prelerrod stock" claim and In
sls that BY yr'ue Of 'hs premises they are entitled
said stock interest at the ratio Of per cent per
annum from tho lst day OF May, 1870 now claimed to
be due but which mas not yet been paid by said de-
fendant also interest hereafter TO be paid
ally out OF the net earnings Of the company or each
year. and further claim that the holders OF the CAPT.
iai stock so-caled common stock" OF said CON-
puny entitled to be paid any dividends what
ever out OF sald earnings until aitor the interest
Claimed TO be due tho so-called prelerred stock'
shall have been paid; and further that after such in
terest has been paid, in case thero should remain
surplus Of net earmngs that such surplus shall be
divided pro rata among the holders Of the said oom-
mon stock" and tho holders of the said so-caled
t'prcfcrrcd stock"
Sere,,shPlainl,T further shows that thero Is row q
large sum OF noney, amounting, AS he IS informek
aud believes to aoout $500. 900, earned by the sal8
defendant, applicable to the payment Of dividends
OF which the directors Of said company ought
10 pay dividend TO the holders of tie capital Stock
but tnaL In consequence oil the said claim OF tho
holders Of the ocaed spretcrred stock" the said
directors refuse 10 pay the sane and plaintiff shows
that is apprehensve that unless restrained by the
order of this Court the SAID directors will pay to Tho
holders oil the socalled 'prcicrred stock" The SAID
SUN OF money upon thor said claim for interest
thereon.
E,gaN-Plantr further shows that between the
time OF the adoption OF the bylaws shown by exhibit
HUT q, over co. 600 Of tho 100 OO0 shares into which
lhc capital stock Of said company had, by its byaws
been divided mad been issued, and thut the only
thority under which the so-cacd ''preerred stockn
after issued the authority Of the Stock
holders representing shares, who voted Tor the
endmeut OF said bylaws and the resolutions shown
by SAID EXHIBIT g.
Ninth-Plantir furthe1 shows that the said rcsolu.
tion conferred no authority tho said company or
Directors
said company To part oil the stockholders OF SAID
conunny to the exclusion OF any othcr part aud hat
ali the aforesaid acts and proceedings ny which the
said so-cxled common STOCK was exchanged Tor tnc
81 called .prefcrrsd stock' were aud arc illegal and
void and power Of sad defendant under It's
charter and tho laws OF the State OF New York. end
that The holders OF tho socalled precrred stock"
not entitled any rghts privileges as stockholders
D. saia company other than Or different IRON the
rights and privileges OF the holders Of the common
ptock OF said COMPANY Wherefore plaintin demands
fct,ct:--
l. That the said defendant the Quicksilver Mining
Conp pany be pcrpctua,iy cnjoincd land temporarily
during ihe pendcnc oi this action) and restrained
from paying TO the hiers OF tho said so-calcd pre
terreG stock" any neys whatever as interest on the
pr vsuo thereof otherwise, and from pay
ing any dividends upon said stock IN excess VI such
dividends rs IL may pay upon tho common st0ck, or
from creating or issuing or attempting 70
create or Issue any additional preferred stock,
doing any act or thing to prejudice the rights Of
the psintln and the other holders OF u capital
Btock.
H. THAT all the acts and doings OF said company re.
lating the issue Of the said so-cacd 'preferrcd
etO,kV aud the Attempted creation OF SAID 6O-caliod
sprc.crred stock' may be declared ilcga INVALID
aud that IL may be adudged that the issue Of said
"prctcrrcd stock by aefendant did not create or
give the holders thereof any other or greater
rights stockhoIde OF said company or any rignt
or interest in or In respect to It's property
ngs gater than those OF tho holders OF the capital
common stock OF said company.
III. that tho plaintih may be awarded his costs
against tho defendant In tnis action aud that the
plaintiff may have such other and further relief
scsibs, tho defendant as may 10 just
wnAr NAT RxsuLr PROM INJUNCTION
In 1870, the Quicksilver Mining Company
barrasscd financially, and. Tor the purpose OF raising
money called meeting OF It's stockholders. Al that
tmo only 90 900 of tho 100000 sharos OF stock had
been issued. The meetins was attended largely, and
= vote OF Is s5s shares passed the bylaw providing
Tor issuing preferred stock Tho books Of tho COM
psuy we're opened, and the hoGors OF ~ 900 shares
came orwsr aud on paying tho aAsessnent Of So per
s..ss exchanged their common scck for preferred
.,ock. For lwo or ,hreo years the company had no
fauas with wn.cn to mcet tho promised interest on
49,