The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-12-24

lily liable, and execution should not issue
against him until his transferee fails to re-
spond to execution against him for his la
bility for the same stock and in such case
1t is error to enter judgment which permits
the creditors to collect twice for the same
block of stocks, once from the transferee
and again from the tranSferer.
s. The liability of such transferer is sec
ondary only to the liability of the succeeding
holders of the same block of stock, and not
as held by the court below, secondary to the
liability of all subsequent transferers OF the
same any other stock.
6. While such transferer is liable only for
his proper share of the Indebtedness still ex-
isting which existed at the time he trans
ferred his stock, still he should not escape
liability because this amount has been al
ready collected from others reached before
him in the order of liability adopted by the
court, and it was error so to provide.
z. Such transferer should as well as the
present stockholders be allowed the benefit
Of any dividend realized from the corporate
assets.
8. The manner of determining the portion
which the transferer should pay of such in
| debtedness existing at the time of his trans
fer, stated.
9. The amounts collected from each trans
ferer must be put into the common fund
and distributed ratably amongst all the cred
itors.
TO- Such transferer cannot be made to con-
| tribute either directly or indirectly ON &C
| count Of debts incurred after he made his
transfer, or debts which existed at that time
and have since been paid.
IL Following Allen VS.. Walsh, rs Mimi.
551; held, said sec. 2501, imposing the double
liability On the stockholders of banking cor
porattons, is constitutional.
H. Held, it is not necessary to consider
whether after transfer of stock, an extern
sion Of the time of payment Of corporate
debts without the consent of the transferer,
releases him from liability as to the debts so
extended, because, even If such transferer
| becomes a mere surety for the payment of
| corporate debts it does not appear in this
| case that he did not consent to the extension
and the burden is on him to prove that he
| did not.
49, Where a transfer of stock was never
| registered on the books of the bank, until
| after the bank failed and made an assignment,
| when it was registered as a transfer from
! him to the bank himself; held, 1t was error
| to charge such assignor as liable only as
| transferer the amount of Indebtedness ex-
| listing at the time he assigned his stock, but
| he should be held liable as a present stock
! holder.
/ IA. Where a Pledge of stock registered it
! on the books of the bank as transferred to
| himself absolutely;
Held he voluntarily made himself a stock
holder, Is liable as such and the court can
not relieve him from any part of his liza
/ bility.
Is. Where assignee of stock failed to
register the transfer on the books of the
! bank so that the assignor continued to be liza
! bic as present stakeholder, and he filed a
cross bill against the assignor (already a
| party to the suit, who is in default for want
! of an answer thereto;
| Held the creditors need not undertake to
| enforce any liability against such assignee or
accept the benefit of such attempted enforce
ment by the assignor; but under the crcum-
| stances, the latter may retain his present
| hold on the former for the purpose of COM
| pe.ling contribution by him in this action
for any sum which the latter may be COM
| PEELED to pay herein.
16. When stakeholder is also a creditor,
| it is proper to order judgment against him
for the full amount of his statutory liability,
the same as against other stockholders to
declare the judgment against him lien on
the amount due him and to order him to pay
all assessments on such judgment until the
! court is fully satisfied that the dividend
coming to him will fully pay the balance due
from him on any further assessments on the
! judgment against him, when the collection of
such further assessments may be stayed and
on distribution, the dividend due him may
be set off against such assessments.
II. Four days before the trial plaintiff dis
covered that nonresident stockholders, over
whose persons the court did not and could
not acquire jurisdiction, had property within
this state; the trial the defendant stock
holders objected to entry of judgment until
the court should acquire jurisdiction over
this property by attachment;
Held, at that late day these defendants
were not entitled to delay the trial or other
proceedings in order to make this property
= contribute to the payment of the corporate
debts, but the court might in its discretion
compel the plaintiff or other creditors to at
tack and proceed to condemn the property,
and if condemned too late to contribute d.
rectly, it, its proceeds might after the
creditors were paid in full be applied to re-
imburse those stockholders who had paid
more than their share.
Is. Held, the creditors are entitled to re-
cover the receivers expenses in addition to
their debts and statutory costs and disburse-
ments, not exceeding the amount of the stock
holders statutory liability.
10. The stockholders liability is several
not joint, and Judgment against only
part of the stockholders within the jurisdic-
ton, does not have the effect of releasing
i the Others
While such liability is several 1t produces
| only limited fund which belongs to all the
creditors as tenants in common and must be
| enforced in equity.
20. variance between the Judgment en-
tered by the clerk and that ordered by the
court, cannot be raised for the first time on
appeal, but an application should be made
to the court to correct the judgment.
21. 1t is proper to provide in the judgment
! that after the receiver has collected in full
| or has exhausted all the collectable liability
judgment of contribution may be entered in
favor of those who have paid more than their
! share and against those who have paid less
! p. After the commencement of this action,
! a stakeholder who had been served with sum
mons, died, leaving no property within the
| jurisdiction of the court;
! Held, her transferer should on the first as
! sessment on the Judgment against the stock
| holders be made to contribute on the amount
! of Indebtedness existing at the time of the
! transfer. Judgment to be modified.
CAVITY, j.
Other decisions were as follows:
| AXE Swanson, respondent vs. Filing G.
Mellen. appellant.
Held, it not under the circumstances,
! error to admit the expert evidence, given as
| to the value of plaintiffs services, which evil
| dence is complained Of merely because the
| expert witness did not hear all of the tes-
! timony OF plaintiff as to the character of the
| services rendered. Order affirmed.
-Canty, J.
G. D. schuites. respondent, vs. Albert sti-
| vers, appellant.
| On issue of whether deed absolute on
| its face was intended to be an absolute con-
| veyance or merely a mortgage, held the
| findings of the court are supported by the
| evidence. Order affirmed. -Canty. ].
| John r. Manshan. as administrator of the
estate Of Andrew Hailoran, deceased, re-
! spondent, VS.. Margaret Halloran ct al, ap-
pelants.
| 1. Whether or not when plaintiff rests at
| the close OF his evidence there was suffi-
| Gent evidence to sustain a verdict in his
! favor, will not be reviewed If sufficient evil
] dence for that purpose was afterward in
| troduced by either party.
| 2. Held, the verdict is sustained by the
! evidence.
3. Held, it was error, under sec $500, G. S.
1894, to permit a party interested in the re-
suit of the action to testify to conversations
with deceased person.
4. Held. while evidence that ct q certain