The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-09-13

600.
1t will be remembered that at the law
term of the Supreme court a case was
argued by Judge Symonds in behalf OF
Mrs. Connor, wife of ex-Gov. Conner, but
in reality a test case brought under what
is known as the Kansas double liability
law, by the provisions of which stock
holder in corporations in that state, is
liable to creditors for the full amount of
his stock, if not fully paid up, and in
addition to the full amount second
time. Judge Symonds, it will be re
membered, strongly CONFERENCE.-The law,
and urged that the courts Of Maine
would not assist in taking money from
it's own citizens, by enforcing it.
A gentleman who is in position to
know whereof he speaks said yesterday
that there are hundreds in this state who
rest their entire property on the argu-
ment made by Judge Symonds, and that
the eloquent lawyer defended hundreds
he never met. In other words, there are
many Maine men who will be ruined in
case the decision of the court should be
adverse to Mrs. Connor
Not only did the fever for investing in
Kansas companies sweep over Maine, but
laws of several other western states,
where Maine people. invested largely,
make the stockholders of corporations,
otherwise than railroads, personally
liable for the debts of their companies.
Co,,+b naLo+o ic ,,ofo bla inctapna and
one that would be felt the most perhaps
by Maine men. There are scores of men
scattered all over Maine who are stock
holders in South Dakota companies, and
the prospect for lively, succession OF
suits in the event of Adhesion against
Mrs. Conner is a great deal better than
good. They would. be sure to come.
A distinguished Portland business man
had an odd experience and one he will
remember. He was in the West, and was
asked to take stock in what he believed
to be very promising scheme, sure to
bring in million dollars" as the local
Gen. Sellers said, and doubtless believed.
He declined to put in any money, but a
few weeks after was informed that he
had been elected the president OF the
company, and that block of stock
had been reserved for his acceptance.
Later on he was again in that section
of the West and was met by the apro-
motersn who urged him to accept the
presidency, and block" of the stock
face value $4,000. 1t looked promising.
All he would have to do he was told was
to act as president of the company.
"You need not attend single meeting of
the boardn he was assured.
A friend who happened to be in the
city, made single suggestion-th he
decline unless the corporation was organ
lied under the laws of Maine. The sug-
gestion was made to the promoters, and
seemed to shower them under with ice
water 1t was out of the question, they
said, the company was already fully or
ganized, and they were not ready to sur
render their certificate of incorporation.
The Maine man again consulted his
friend, who made second and brief sug-
gestion. See an attorney, and find out
what your liabilities would be under the
law of this state were you to accept the
stock they offer you"
The advice was taken, and he was told
that the Creditors of the company could
collect exactly 800, 600 of him in the event
of his accepting the'proffered block" of
stock 1t was not accepted, much to the
disgust of the promoters His name
was not at once dropped from the list of
directors, and single share of stock was
left standing in his name for a few
weeks Hardly had he reached Portland
before letters began to come from
Chicago, and other western cities. All
they wanted to know was the amount of
stock standing in his name on the books
of the company. 1t was question of
credit, and had the Portland man taken
the offered stock for the use of his name,
it would have given the company good
and certain credit of 100000.
Others were not as wise as he, and it is
not matter of conjecture, but of absolute
knowledge, that there are Maine holders
of western stocks who are in just the
condition from which he escaped; men
who eagerly took offered stock now
worthless, and figured on boards of
directors, and who now have but one
hope of escaping impending ruin through
the operation of the double liability law
of the western states, or of some of them.
The gentleman who gave the above in
formation says that the decision of the
Supreme court of Massachusetts,, which
wasscited by Judge Symonds when he
made his argument in the case of Mrs.
Conner, and to which he referred at
length, saved one body of Massachu-
setts men 5000, 600, and another association
$12o, 900. They were induced to take stock
in corporation formed in one of the
western states to purchase real estate in
one of the frontier cities. In the second
instance $50, 900 was paid and in the case
of the larger deal 500, 900, leaving $780,
600 remaining to be paid. The eastern
men found that they had been taken in.
They had bought their stock at low
figure, or at least some of them had, and
the land was the same as worthless.
They had lost all they had put in, and
were confronted by the creditors of the
company who demanded payment. The
woSterp 1nanaCamant had mazda uiy,,