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

let fall this morning from his seat Oh
the bench Of the circuit court, Senator
Mitchell, John Johnston au1 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 Of 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
the opportunity of filing a declaration
to the effect that they would be per-
sonalIy 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 the Jaw
is worthless and that the delara lions
SO filed are not binding in a court of
Law.
Judge Johnson spoke of the matter
Immediately after he had rendered bis
decision in the McDougall bank case
this morning. 4 X. Miller, Jr., and
Francis BloodS BOD piled the court with
questions after the reading Of the de-
wtrire them Judge Johnson sail that
it might be that The individual liability
law was unconstitutional. Judge John
SCH intimated that he would not be SUI
prSed if a suit should be commenced
to declare the law unconstitutional
and of no effect. He said that pos
Sibly this might be done on tfl2 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 be declared that the law is not eff
fecuye, 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 100000 out of
the private fortunes of Mitchell, Fer
guson, Becker and Murphy combined.
Nearly two-thirds of that sum would
have to be paid by Mitchell. Mr.. John
ston has no stock now.
Milwaukee, Aug. 17.-Judge johnson
this morning affirmed the petition of
Ak. d. 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 to all those interested
in the collapsed bank. 1t will prevent
any further suits except the one emit
tied Benjamin NJ. We'll VS.. the w. NJ
and l.. |. Co. bank, and restraints those
now brought from being further pros
ecuted 1t will simplify the law pro-
ceedings and prevent the extraordinary
expense IF the thousand and one suits
liable to be brought by creditors, all
of which would have to come out of
the 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 is prac-
tically declared to be an asset of the
Mitchell bank. Judge Johnson holds
that the personal liability of the es-
tate of Alexander Mitchell was never
transferred by a filed declaration as
required by law. If the executor of
the estate, John l.. Mitchell, had filed
such declaration upon assuming his
office the estate would now be free
from the complications entailed by the
suspension of the bank. Now the
whole estate goes into the receivers
hands, and if there is enough left after
the creditors are paid the beneficiarieS
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 an 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
CT 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
Irving NJ. Bean, the receiver Of the
John Johnson estate. The judge de-
cided that it would not be necessary to
include Mrs. Martha Mitchell or any
of the beneficiaries under the will of
Alex. Mitchell. The proceedings in
probate by Martha Mitchell he refused
to enjoin
Judge Johnsons decision partly sum-
married. is as follows:
This action having been instituted
by a creditor for the benefit of all
creditors, who may come in and eNhib
it their claims, and the petitioner hay
ing come in and exhibited his claim.
he must be regarded as a co-plaintiff
with the original plaintiff The ques-
tons raised by the petition must there
fore be decided upon their merits.
ut is held in Coleman vs. White "a
Wis, 700 that the liability of a bank
stakeholder is primary and absolute
and attaches the moment the debt is
contracted by the bank; that it is a IL
ability of all the stockholders In so
Tar as the stockholders are liable to