The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-01-12
AJAX LITIGATION.
Case of Mcintyre Against the Direc-
TORS of the Companv,

y
tors of the Company.
The dispute among the stockholders
of the Ajax Mining company was VI
in Judge Hiies' division of the Third
district court yesterday in the case OF
Samuel Mcintyre against the AJAX
Mining company, H. NJ. Ryan and the
other directors of the company lndl-
vidually, and others.
The matters in the case were before
the court a month or two ago on hear
ing of the plaintiffs petition for an in
junction, and now the case came up on
its merits.
Judge Henderson and Mr.. P. ]. DAILY
represented the plaintiff and Judges
Dey. Street, Powers and Burton We're
for the defendants.
The suit was brought to obtain de-
cree of the court for the conveyance
into the treasury of the company 44,OOC
shares of its capital stock
In the complaint it is set up that the
plaintiff owns la, 900 shares of the cap
ital stock of the AJAX company and he
brings the suit on behalf of himself and
all the other stockholders; that on and
prior to April l, 1896, Henry Shields and
W. /. Snyder were the joint owners OF
1000 shares of stock in said corpora
ton and also had a claim against the
company for nearly s25,0 600; that the
Ajax company, by its agents, entered
into q contract with Shields and Sny-
der by which they disposed of and set
tied the said claim and that as part
of the contract and for the same con-
sideration, Shields and Snyder also re-
Hnquished their right and title to the
Al, 600 shares, and that the claim was
paid by deciding the Cob tunnel and
eight acres of dump ground, all of
which was supposed to be worth $12,-
900, and was estimated in the trade at
that figure, and together, with $4,000 in
cash went in payment of the claim
and the stock.
1t is then alleged that at the time
of the transfer of the stock, for the
purpose of concealing the true nature
of the transaction, a small amount of
money was paid or obligations were
taken up to a small amount personally
by Ryan and Knox, the whole amount
of which did not exceed $4,000, al
though at that time the 1900 shares
of stock were worth from $4,000 TO $24,-
600, the purchase of the stock being
fraudulent and the settlement of the
claim being made simply to cover the
purchase of the stock, when in truth
the consideration received by Shields
and Snyder was for both the claim
and stock together, the entire consid-
Grafton being $4,000.
Plaintiff then says that when the
stock was delivered it was not placed
in the treasury or made part of the
assets of the company, but was taken
by Ryan and Knox and placed in the
name of Ryan, who hypothecated it to
the defendant Mccormick upon an in
debtedness due by Ryan to AIcCor-
nick.
Plaintiff prays judgment that Ryan
and Knox be required to deliver to the
corporation the 1900 shares and that
they be in the meantime restrained
from voting the stock or selling or dis
posing Of it.
The temporary injunction was issued
and still remains in force.
The defendants denied all the ma
teIial allegations of the complaint and
alleged that the transactions were en-
tered into and contaminated in perfect
good faith in every respect.
The testimony adduced yesterday was
practically similar to that at the hear
ing for the injunction.
The plaintiffs case was closed late
in the afternoon, and a motion for a
non-suit made by the defendants coun-
sci was oveITuled.
Judge Hiles held an evening session
at which 4 number of witnesses were
examined for the defendants. The
hearing was proceeding when court ad-
journed.