The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-25
THEY ARE LIABLE
Rainier Power and Railway
stockholders Must Pay.
JUDGE HANFoRp so DECIDES.
Company Entitled to Recover From
David +. Denny. d. Thomas Denny
and W. G. Dickinson.

Judge Hanford yesterday handed down
an important opinion IN the case of Fred
Bsssmsn- as receiver Of the Rainier Power
4 Railway Company. against Louisa Dem
ny, David T. Denny, d. Thomas Denny
George kinnear. w Gisdstons Dickens IN
and the Western aIfn Company, an equity
suit brought by the receiver of the In
solvent road against its stockholders 10
collect from them the unpaid portions of
their subscriptions to It's capital stock, in
which Judge Eanford holds that the plain
tin Ii entitled 10 recover from ". Glad
stone Dickinson no, from David T., Dem
ny Sss. fe. and from D. Thomas Denny
81 - and tina; as to all the other defend
ants the suit be dismissed
With reference to Louisa Denny the
opinion says: las TO the defendant Louisa
Denny the bill must be dismissed for fall
ure of proof. The stock standing in her
name upon the books OF the company at
the time of the appointment of the re-
ceiver appears to have been transferred
withou. her knowledge or consent. and
when informed of the transaction she re-
fused 10 receive the stock. Having never
subscribed for stock. nor become a holder
of unpaid stock she is not liable"
As TO the Western Mil Company .he
court holds. The defendant the Western
NH Company is only nominal party.
The Rainier Power & Railway Company
having acquired ownership and posses
sion of all its assets before the receiver
was appointed. no decree for substantial
relief can be enforced
As to Dickinson, Judge Hanford decides
that the defendant w Gladstone Dicken-
son has failed to answer. and as TO him
the bill must be taken as confessed
George kinnear. By way OF defense
raised the question OF jurisdiction. AMI
also claimed as an offset a promissory
note OF his for $500. which was discount
ed by the company and used In its BUSH
ness, and for which kinnear contenGed.
although the note was not given Specificsl-
iy in payment of his subscription TO the
capital stock sttll he was entitled TO a
credit therefor Judge Hanford opines that
the court has jurisdiction, and decides that
kinnear Is entitled to be credited with an
amount sufficient to cancel his entire sub
scription to the capital stock.
With regard TO the other defendants the
language OF the opinion is as follows:
THE defendant David T. Denny has
paid debts OF the company exceeding the
amount of the balance upon the stock for
which he subscribed But said payments
are not set forth in his answer. and no eA-
emption from liability is claimed on &C
count thereof. The answer admits that
there is due from this defendant a balance
of Ss3 15o. The sum of SEQ remains un-
paid on the stock held by p. Thomas Dem
ny, and against this liability there appears
TO be no valid defense. In their answer
these two defendants plead the statute Of
limitations but this is not available for
the reason that no right of action accrued
upon the subscription contract until a call
had been made. Scovil VS.. Thayer los L.
s. 1912. As no call was made until a
short time before this suit was COM
menced, the demand against the defend
ants cannot be regarded as stale. and the
defense is without merit