New-York tribune., 1879-09-17
TIE QUICKSILVEe MINING CASE.
THE VALIDITY OF THE PREFERRED STOCK UPHELD
BY THE COURT OF APPEALS.

THE VALIDITY OF THE PREFERRED STOCK UPHELD
BY THE COURT OF APPEALS.
ALBANY, Sept 16.-The following is an alb
strlct OF the opinion written by Judge F.iger. and
handed down in the Court OF Appeals to-iay IN the
Quicksilver Mining case. which susians the decision Of
the below and Is favorable To the validity o. the
preferred stock;
AL the powers OF the COMPANY 10 be got from ito
charter or the general provisols ot the Revised
Statutes Doubtless II had power 10 borrow money.
ments may be made or may be demsnGed A. theis
such time here the act OF the company was not
creation OF preferred stock. Tie Cour no, pre-
misht have classified iis capital ock n;o pf,ferre and
common. and II may b that legisatye au'torty or
the unsD''ryi ris6t afierward. but ths company did
otherwise without that authority or conseniy
stock It's contract with the nonassenting Stockholders
and thereby disturbed vested rign Tue Court there
held but FOR The consideration that the nonasseniias
stockholders hac. by their silence aud neglect to asx
promptly for Judicial Interference acqnie'ce ~ the &C
lion OF the company. and arc th,rcby oppedfom now
holding the preferred stock Other Inc dental topics ase
noticed IN the opinion. suen as the alleged unstable n1-
tuTe Of the transaeon and whether the contract wa,
exc ,Uted or execntoy. The opinion H. elaborate AID
fully discusses all the questions involved
The validity Of the preferred stock created by
tae Quicksilver Mining Company has beeu sustained by
the decision the OF Appeals Ihe issue OF this
stock was authorized by the unanimous vote Of tbs
stockholders Of the comp iny present AT the annual
meeting in FeDruiry 1870 The original stock OF the
company Was liked at SlO.cOOOO0i OF which than
three-fortns represented sr the meeting The
pany at that time was labor .Dg under naueal Distress
and application for the appointment ~ Tcccver had
been made The stock was selling al 80 or
80 share. In order 10 secure necessary funds,
IN. issue Of preferred stock authorized February
"a, 1870 20 stockholders upon the payment of 20
snare aud the surrender OF the old certificates. The
option expired on April Is. 1870. when AZ el3 shares
only had exercised the privilege The money thus OBJ
taned saved the company from Insolvency. AteTward
the holders OF the common stock asked tne privilege of
.f their
the condition. II the preference certificate THIS claim
was resisted the holders OF the pre- FRED stock aud
from tLis difference sprung a litigation which hes ex
tended through five ycaTs The has been brought
before teen judges, including those VI the Court oe
Appeals ani the Va dy O tle preferred stock has been
sus,lined by all except one, Judge Gilbert.
John r. Doe PasSos, one OF tue counsel Tor the pre-
erred stockholders said Yesterday that there could 90
40 appeal from the decision just rendered. The
could not b. removed 10 the United States Court be-
cause II did no. involve the construction Of United
states statute provision OF the Federal cousutu
ton.
Ihe back dividends the preferred stock. which
are said 10 80 Or ~ per cont VIII pe ascer-
tanned by accounting which has been provided by an
order OF the Court