Omaha daily bee., 1896-03-03
LuABlLITy OF COMPANY OFFICERS.

| Attorney General Answers some
| Queries of n House Committee.
WASHINTGON, March 2.-Attorney Gen.
eral Harmon today sent the following let
| ter to Chairman Powero of the house COM
mittee on Pacific railroads.:
rIGaH 1EPARTMENT Me- % OF sa} SUSTIcE or WASH
powers, chairman Of Committee on Pacific
| Railroads, House of Representatives: Sr-
| l have the honor to acknowledge the re-
ceipt of your letter on the 10Th inst, en-
| closing resolutions adopted by your COM
mittee requesting my views upon the ques-
| tions therein put and to submit my answer
| First Question Whether the officers and
incurred incurred any liability to the United states
| by the unlawful issue of the stock of said
| companies.
any company knowingly made or permitted
any unlawful issue of the stock thereof,
| they become personally haofe to the com
| pany, or to its lawful stockholders, but
| not to the United States, which was merely
aot cTsdor ed The rights of Gsrd1of Issue Goud a
| stock, which merely represents the prop
| erty of the company but does not dispose
Second Question-Whether the said officers
| and directors incurred any liability TO their
for the profits on contracts made with them
selves, or persons representing them FOR
contracts with themselves or persons repre-
sentng them, to their own profit or the
detriment of the company, they become
liable to it unless such contracts were
| knowingly authorized OF, ratified by ma
jority of the directors having no interest
therein, or by the stockholders, but they are
not become LIABLE to the United statgS
States. as a creditor. of said corporations
said parties for the enforcement of said
to enforce payment Of the debts owing by
the said companies, to the United States
(, D tnhp
Answer-It was held in the case of the
United States against the Union Pacific
Credit sr,f Mobiiier Case tsS G. s., p $500, that
such liability was to the respective com.
0nS Any rhe aeon terson Se
guilty parties, but could assert. the rights
Of the company by proper %, 81 suit Tins in equity r
to exhaust other remedies, If showing
We're made of probable loss by delay,
exists, the United States will be barred in
any action which might be brought for
of limitations, which would bar the com
panes If the actions were brought In their
the % Tnited @ states, States would % be entitled to main
tain actions as creditors of said corporations
against it's creditors and officers which
the corporations themse elves could not main
Answer-As the United States would be
pany's assets to be applied to the. payment
Of their creditors. any any statute of Limitation ton
WnlCn WOuHl lHt tDllphlltS Wuulu dlSD
bar the United States.
Fifth Question-Whether the facts found
sioners sion rs of 1857 in their report to. the pres-
dent, are supported by evidence legally ad-
missabe in court of justice?
Answers VI the questions mean to ask
If the evidence before the Pacific railroad
commission, upon which they founded the
facts stated in their report would be ad-
missabe in a suit or action between parties
in court | answer generally that the
statements made by any witness would be
1,a,iu lin m ct
any other person, and that original docu-
ments would be admissible or copies under
the usual rules relating 10 secondary evil
dence. With this exception, the evidence
would not be admissible; ! do not under
whether If the commissions IS had applied
legal rules of evidence. the testimony should
have been admitted.
1 have fully answered the questions as /
understand them and have the honor to be,
very respectfully,
Attorney General