Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1893-08-24

that separate actions at law will not
be against them
But John Johnston was not a stock
holder of the bank at the time of the
commencement of this action, and he
and the stockholders are sought to be
made liable under chapter 223 of the
laws Of 1880, as amended by chapter
AL Of the laws of 1880 1t is also
sought to bring in the estate of Alex
ander Mitchell, by virtue of a certifi-
cate of liability filed by him in his
lifetime and never formally rescinded
by him or his executor.
This statute provides in substance
that the stockholders, owners and part
owners Of any bank organized under
our banking laws may file with the
state treasurer a declaration consent
ing and agreeing to hold themselves
individually responsible for all the
debts of the bank, and that thereafter
during the life of the declaration they
shall be and remain so responsible
Alexander Mitchell David Ferguson
and John Johnston filed such a decla-
ration under this statute on July 6.
10, 1887, and neither he nor his exc
cutOr ever attempted to terminate his
liability by any declaration as provided
by law. John l.. Mitchell filed a dec
laratiOn of personal liability Feb. g.
1889, which remains unrescinded
John Johnston transferred his stock
to John L. Mitchell and filed a decIara-
ton intended to terminate his indi-
vidual liability JAN 13, 1898; which. by
the terms of the act, left him liable
for all debts contracted by the bank
prior to July 13, 1898 Stockholders
Murphy and Becker have never filed
any declaration of personal liability
under this act.
Thus an action may be brought
against the bank for any debt so Sc
cured by declaration of individual IL
ability; any one or more of all the
stockholders who have signed such
declaration may be joined as defend
ants. Provided that nothing herein
shall be construed to prevent any ac-
ton from being maintained against
said bank or banking association alone,
or against the said stockholders, own
ers or part owners or either or any of
Them
1T has been suggested that this pro
visO saves to each creditor a right of
action at law against each stakeholder,
even after the bank has been SeQueSt-
cred and put into the hands of a re-
ceiver
Il cannot so cOnstrue the law. Moth
ing in this act is relied upon or sought
to be so construed as to prevent such
actions being maintained The con-
sideratiOns urged to restrain the prose
cutiOn of such actions are equitable
and outside of the statute. They are
the same considerations which stand
as the reasons for the decision in Cole
man VS.. White and the cases follow
ing it and the additional reasons grow
ing out of the fact that this case has
many complications which did not ex-
lSt in that and which furnish strong
arguments for the withdrawal of this
case from the courts of law and bring
ing into this suit in equity the numer
Gus and intricate questions among the
parties in interest.
'The prayer of this petition will be
granted and beyond that the parties
who have already commenced actions
at law against the stockholders will be
restrained from proceedings with such
actions.
Il do not pass upon the liability of
the Mitchell estate. / only let it be
brought in as party defendant in
order that its alleged liability may be
fairly and fully litigated, if it should
become necessary"