Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-08-25

Milwaukee, Aug 17.-E'rom the pur-
port of words which Judge Johnson
let fall this morning from his seat Oh
the bench Of the circuit court, Senator
Mitchell, John Johnston aal David Ter
guson may perhaps save their private
fortunes if they choose to try.
1t has been one Of the elements of
the Marine banks strength that it has
rich men back If it and that these
mer were liable for every cent of the
banks Indebtedness. An act of the leg
islature gave the stockholders Of all
banks organized under the state laws
10 the effect that they would be per-
sunaIly responsible for the debts Of
tie bank The Marine bank WAS tie
only bank that ever took advantage Of
this law. Now it may be that tn. law
is worthless and that the declarations
so filed are not binding in Il court Of
law.
Judge Johnson spoke of the matter
imlnc diately after he had rendered his
decision in the IcDougall bank case
;!liS morning 4 Is. Miller, Jr, and
Francis Bloods )od piled the court with
questions after the reading of the de-
cision was COM luded and while ans
WtrinG them Judge johnson said that
il might be that The individual liability
law was unconstitutional. Judge John
sou il timated that he would not be Sui-
priscd if 4 suit should be commenced
to declare the law unconstitutional
and Of no effect. He said that pos
sibly this might be done on tie ground
that the act was an amendment to the
banking laws. The banking laws, he
intimated, cannot be amended without
first submitting the amendment to the
vote Of the people, and as the people
had never voted on this law it might
be invalid from this omission.
1t is not very good news for creditors
Of the Marine bank that this individual
liability may possibly lapse Should
it bc declared that the law is not eff
fective, then under another statute the
stockholders, in addition to losing their
stock, would be liable only for an
amount equal to the amount of shares
of the capital stock which they own.
That would mean only $4,000 out of
the private fortunes of Mitchell, Fer
guson, Becker and Murphy combined.
Nearly two-tnirlS of that sum would
have to be paid by Mitchell. Mr. john
ston has no stock now.
Milwaukee,, Aug. Il. Judge Johnson
this morning affirmed the petition Of
Ain. II. McDougall To consolidate all
the suits against the Wisconsin Marine
and Fire insurance Company bank.
The effect of this decision will be of
vital Importance 10 all those Interested
IN the collapsed bank. 1t will prevent
amy further suits eNcri.t the one emit
He'd benjamin NJ Wen vs.. the W. NJ.
and +. |. Co. bank, and Restraints those
now brought from h"ing further pros
ecutcd 1t will simplify the law pro
-crdingS and prevent the extraordinary
expense of the thousand and one suits
liable TO be brought by creditors, all
Of which would have to come ont Of
tile assets Of the bank.
But the most important part Of the
decision outside of the consolidation OF
all suits into one is the fact that the
estate OF alexander Mitchell - prac-
icaily declared TO be an asset OF the
Mitchell bark Judge Johnson holds
that the personal liability of the eS-
tate Of Alexander Mitchell WAS never
transferred by / filed declaration us
required by law. II tie executor of
the estate. John l.. Mitchell, had led
such declaration upon assuming his
office the estate Would now Hc free
from the complications cntailed by the
suspension Of the bank. Now the
Wnuic estate goes into tine receiver
hands. and il there. is enough left after
the creditors are paid the heneticiaries
under the will of Alexander Mitchell
will come in, and after their claim is
satisfied John L. Mitchell as reSiduary
legatee gets what is left.
1t strengthens the assets of the bank
to IN enormous degree if the decision
is made to stand. Judge Johnson him.
self stated while delivering his opinion
that there was a question as regarded
the Alexander Mitchell estate being
included in the suit Of We'll against
the Mitchell bank. He thought it
would bring up the constitutional queS-
ton as to whether the constitution had
been complied with. when it provides
that all banking acts. which include
The law providing for such declaration
Of liability of stockholders. must BE-
voted upon by the people. That law
had never been submitted by the peo-
pie.
The decision makes all the stock
holders of the bank defendants. also
John johnson estate. The Judge de
cided that it would not be necessary to
include Mrs. Martha Mitchell or any
Of the beneticiarieS under the will Of
Alex. Mitchell. The proceedings in
probate by Martha Mitchell he refused
to enjoin
Judge Johnson'S decision partly sum
married. is as follows:
This action having been instituted
by Il creditor for the benefit of al
creditors. who may come in and eNhib
If their claims. and the petitioner hav
ing come in and exhibited his claim
he must be regarded as q co-plaintif
with the original plaintiff. The ques
tons raised by the petition must there
fore be decided upon their merits.
1T is held in Coleman VS.. White q
Wis, 700 that the liability of a banl
stakeholder is primary and abSolut,
and attaches the moment the debt i
contracted by the bank; that it is Il ii
ability of all the stockholders. In S,
far aS tho Stockholders GRO liable n