Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1893-09-28
AN IMPORTANT CASE.
How Kansas Law Affects Maine-Await-
ing a Decision.

=
stakeholder in corporations in that State,
is liable to creditors for the full amount Of
his stock, If not fully paid up, and in adj
dition to the full amount second time
Judge Symonds. 1t will be remembered.
strongly combatted this Law, and urged
that the courts of Maine would not assist
In taking money from it's own citizens. by
enforcing it.
gentleman who is in a position to
know whereof he speaks. said yesterday
that there are hundreds in this State who
rest their entire property on the argument
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 10 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. South Dakota
is a notable instance, and one that would
be felt the most, perhaps, by Maine men.
There are scores # men scattered all over
Maine who ale stockholders in South pa.
kota companies, and the prospect for a
lively succession of suits in the event Of
decision against Mrs. Conner Is a great
deal better than good. They would be
sure TO come
distinguished Portland business msn
had an odd experience and one he VIII re-
member. He was in the West. and wss
asked 10 take stock In whist he believed
to De very promising scheme sure To
bring In a million dollars, a. the local Col
Sellers said. and doubtless believed lie
declined to put in any money. but few
weeks after was Informed that he had
been elected the president OF the company
and that "bleck" OF stock had been re-
served for his acceptance.
Later on he was again In that section ct
the West, and was met By the promoters"
who urged him to accept the presidency.
and block" Of the stock. face value
$50, It looked promising. All he
would have 10 do. he was told was TO
act a. president OF the company. You
need not attend q single meeting OF the
board, he was assured.
A friend, who happened 70 De III the
city, made a single suggestion-that he
decline unless the corporation was organ
lied under the laws of Maine The >ug-
sestion was made to the promoters and
seemed to shower them under with ice
water. II was out Of the question. they
said, the company was already fully organ
lied, and they were not ready to surrender
their certificate Of Incorporation The
Maine man again consulted His friend,
who made second and brief suggestion ::
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 500 900 OF him 10 the
event of his accepting the proffrrod
block OF stock. Il 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 3
few weeks. Hardly had he reached Port
land before letters begau 10 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. II was a question Of
credit, and had the Portland man taken
the offered stock for the use Of his name.
ii would have given the company a good
and certain credit OF 500 600
Others were not a. wise a. he, and il is
not matter OF conjecture bu. # absolute
knowledge, that there are Maine holders
of western stocks who are in Just the con
dition from which he escaped men who
eagerly took offered stock now worthless.
and figured on the 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 tie
SGpreme Court OF Massachusetts. which
was cited by Judge Symonds when he
made his argument il the case Of Mis-.
Conner, and to which he referred a.,
length, saved one body Of Massachusetts
men 100000 and another association
$4,000 They were induced 10 take
stock in corporation formed in one OF
the western States u 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 800 900.
Leaving $500 900 remaining 10 be paid
The eastern men found that they had been
taken in, They had bought their stock
at low figure, or az least some Of them
had, and the land was the same as worth
less. They had lost all they had put in.
and were confronted by the creditors Of
the company, who demanded payment
The western management had made i'm
proyements' costing thousands of dollars,
and the holders of the mortgages were not
content to take their land back with. in
some cases, half of the original price paid
The decision of the courts of Massachu-
sets saved the eastern stockholders from
further loss
1t is said that the creditors Of a single
western corporation are in position to
bring suits against Maine people for al
most $500, 600. Letters are coming in
from all directions asking when the de-
cision in the case of Mrs Connor NAV be
expected, and the interest felt in 1t seems
to extend a widely as did the area of
western speculation for past yesrs.-Port-
land Press.
Gubernatorial Nominations.
The following nominations by Govern