The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-12-24
EACH ONE MUST PAY
SUPREME COURT HANDS DOWN A
DECISION TOUCHING BANKING
MATTERS.
THE HOLDERS Of BANK STOCK
AMOUNT OF STOCK HELD BY
EACH.
JUDGMENTS MAY BE OBTAINED
For This Amount Whether the Ag-
gregate Sum Is Greater Than
That or Not.

The supreme court, by Jistice Can
by, yesterday handed down a long
decision defining in detail the liability
of the stockholders in the suspended
bank
The decision is in an action brought
by j. G. Harper to enforce the statu-
tory liability of the stockholders of
the Citizens Bank, of Minneapolis,
which suspended payment May 1, 1893,
and on July s, Of that year, made
general assignment for the benefit of
its creditors, under the insolvency law
of 1898. Walter N. Carroll was appoint
ed assignee, and is made co-defendant
in the action. The assignee paid the
creditors 20 per cent. of their claims,
which is said to be all that will be real
lied, unless something is collected on
judgments against apparently insolvent
! debtors of the bank. Harper, the plain
tiff creditor, in his action makes all
the resident stockholders parties In
response to an order from the court
337 creditors filed claims, aggregat-
, ing $202, 524.50. The 90 per cent paid in
dividends was deducted, leaving bal
ance due, principal with interest, to
Feb. 8, 1896, of $175, 22369. The capital
stock of the bank was $780, 600, of
which $28,S00 was held by non-resi-
dents, on whom no service was made
Judgment for double the amount of
his stock was made against each resi-
dent stakeholder, except ]. N. Barnes,
who seems to have been overlooked.
Judgment for double the amount of
his stock was also ordered against each
prior stockhOlder who had disposed of
his stock within a year before the as
signment. The aggregate amount of
judgments secured is $685. 200. Now
comes the question as to the amount
each stockholder, prior and present,
shall pay. The court holds that the
liability Of prior stockholders is only
secondary, and rules on all the ques-
tons in the syllabus, which follows:
James G. Harper, respondent VS.. Walter
N. Carroll, as assignee of the Citizens Bank
Of Minnesota, ct al, defendants; Walter N
Carroll, assignee, etc, ct al. appellants.
enforce the double liability Of the stockhold-
ers of an insolvent corporation.
1. Held, the creditors are entitled to a
judgment against each stakeholder for the full
amount of his statutory liability, even though
the aggregate amount OF this judgment ex-
ceeds the aggregate amount of all the corporate
Indebtedness and costs and expenses of the
action to be satisfied by such judgment.
Clarke V Opera House Co., 5S Mimi, 49,
distinguished.
2. But held, where the aggregate amount
Of the judgment exceeds the aggregate
amount to be satisfied by the same execution
should not be issued against some or all of
the stockholders for the full amount of the
judgment against each, but the Judgment
should by its terms provide for issuing
successive executions on the order of the
court, at first, for each stockholders pro rata
share of such Indebtedness and expenses, and
then for subsequent successive executions for
such additional pro rata amounts or assess
ments as may be found necessary by reason
Of the failure to collect from stockholders
found to be insoIvent in attempting to satisfy
mes sand expenses are paid in full the bal
ance of the judgment against those stockhod-
ers paying their full share of the same, shall
be satisfied, execution should be issued on the
Judgment accordingly.
8. The court may, in its discretion on ap-
plication or notice, stay the docketing of the
judgment against any particular stockholder
on the giving of bond to pay each and every
assessment on the judgment due from such
stockholder whenever ordered by the court.
4. Under Sec. 2501, G. S. 1894 the stock
holder of banking corporation is liable to
double the amount of his stock in an action
under Chap. rs, if the bank becomes insol-
vent and suspends payment within one year
after he transferred his stock.
But held, such transfer is only secondar-