Los Angeles herald., 1891-04-14

perior Court OF Los Angeles county, the
writ Of prohibition was ordered dis
missed.
The cases OF Cow VS.. Marshall ct al.
and Dunlap vs.. Steere were submitted
on the briefs already on file, the parties
to the latter suit being allowed fifteen
days time in which to reply to each
other.
The three cases OF Smith ct al. VS.. the
Phoenix Insurance company OF Brook
lyn, New York, were argued by G. G.
Graham, Jr. for appellants, and r. b.
Carpenter for respondents, and sub
mitted.
The following cases were argued and
submitted, it being stipulated by the
attorneys that Justice Mcfarland be
allowed to participate in the decision Of
the court Ramish VS.. Kirschbran &
Sons; People ex rel, Sabichi vs.. Los
Angeles Electric railway company !;
Thompson VS.. Laughlin; Schallert-
Ganahl lumber company vs.. Neal ct al. ;
and Garnsey ct al. VS.. Gothard ct al.
Upon motion of M. j. Hunsacker, and
presentation of license from the su-
preme court of Kansas, Malcolm w.
Mcdonald was admitted to practice in
all the courts Of this state. Nelson w.
Bell was also admitted on motion of HI.
M. Latham, and presentation of license
from the supreme court of New York.
The case of De Guver at al VS.. Ban
ming was continued until tomorrow, and
in that of Annie Fisher VS.. P. Hopkins,
it was ordered that the appellant be
allowed until the Goth inst. in which to
file his brief.
In department two of the supreme
court yesterday morning, Justices De
Haven, Sharpstein and Garoutte pre-
siding, it was ordered that the cases of
Kiessig vs.. Allspaugh ct al. stand SUBJ
mitted for decision, the same having
been consolidated by agreement.
UNITED STATES COURT.
In the United States district court
yesterday Thomas Leach OF San Bernar-
dino, one of the two men recently in
dicted by the grand jury for selling
liquor to Juan Cuate, an Indian, ap-
peared before Judge Ross for arraign-
ment, and, upon entering his plea of
guilty as charged, was sentenced to
imprisonment in the county Jail for
period Of sixty days.
juan ViBlci, cHc oIucr HAL lToHl
whom Cuate claims to have purchased
attorney, w. A. Cheney, Esq.,, upon
whose motion his case was continued
forarraignment, and plea until Thursday
next, at IL O'Clock am.
Michael O'Shea was arraigned upon
the charge of having cut timber upon
government land in Kern county, and
upon entering his plea of not guilty
thereto, his case was continued to be set
for trial
Inthe case OF Mosier vs. Beale, Tho
court allowed the hedefendant twenty days
time in which to prepare and file his
answer.
On motion of G. J. Denis, Esq, it was
ordered that Malcolm w. Mcdonald,
ESQ.,, be admitted to practice in the
United States courts; and Alfred Cooper,
Esq, was also admitted, upon motion of
Hon. s. M. White.
The district court convenes again at
II O'Clock this morning. but the circuit
court stands adjourned until Wednesday
morning.
AN IMPORTANT DECISION.
In the United States circuit court yes
terday Judge Ross decided the case of
the Union Loan and Trust company,
trustee. against the Southern California
Motor Road company.
This was suit in equity brought to
foreclose a mortgage executed by the
Motor Road company to secure the pay
ment of $500, 200 worth of bonds. The
principal points of the decision are as
follows:
In respect to the merits, the case
o1n hat v1r;or 70 thu fvo
actions resulting in the execution of the
ton was engaged in the construction of
a motor road from the city of San Ber-
nardino to the town of Cotton, in San
Bernaidino county.
The defendant Motor Road company
was incorporated under the laws of Cali
fornia, with capital stock of 10000
shares, and to this corporation the But
ton franchise and plant were sold, he
receiving in consideration thereof 5000
shares OF the stock of the corporation.
In February, 1883, Taylor took theplace
of Joy on the board of directors, and
succeeded Morrill, as president.
The stockholders other than Buttol,
and among whom, according to his testi-
mony, 800 shares of stock were distrib-
uted, advanced money from time to time
as it was needed, in proportion to the
number of shares held by them; that in
this way so or go cents en- the dollar was
paid in money for the 900 shares so dis
tributed, and for the balance, ito make
it paid-up stock" services" were rem
dered by the respective holders, almost
all of whom were directors of the copora-
ton, and charges therefor allowed by the
board.
The case further shows that at meet
ing Of the board of directors held on the
18th OF January, 1883, there were pre-
sented to it the written consent and re-
quest Of the holders of more than two
thirds Of the stock of the corporation,
"that the board OF directors of said COR
poration borrow 100000, in such man
ner as may seem to them BEST"
Under an order of January 10Th, how
ever, 100 of the bonds and 1000 shares of
the stock of the Motor Road company
were delivered to Joy as trustee. for sale !;
and by Joy 25 of the bonds and 300
shares of the stock were sold.
The remaining 33 bonds and $50
shares of stock were subsequently re-
turned by Joy to the corporation.
The circumstances of the present case,
I think, are such as to render the bonds
taken and held by the directors invalid.
A batch of $4,000 worth of bonds,
t,ou0ht NV r r Tohornoon os on ipro-