The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-11-27
STOCKHOLDERS WILL GET
The FOX JUDGMENT

Judge Hebbard handed down an opinion
yesterday directing that the residue of the
judgment IN the celebrated case of Fox
against the Hale & Norcross Silver Min
ing Company be distributed to the stock
holders and not to the corporation as a
body. This by no means settles the liti-
cation, however, as an appeal will be
taken from the order of distribution. New
points will naturally arise and in their
order they must be passed upon by the
Supreme Court before the contendfng liti-
giants will be willing to cease battling and
close the suit.
In this action Fox obtained judgment,
which, with interest aggregated 1904 447 H.
Twice the Supreme Court was called upon
to review the case, and finally on the or
der of that tribunal the money was paid
in Judge Hebbards department of the SUI
perior Court. The amount was placed in
the hands of Receiver Groom and subse-
quently deposited in bank, and the order
of Yesterday directs the receiver to dis
tribute it to the stockholders, reserving,
however the payment of the dividend
upon the shares of stock now in contro-
versy between the corporation and certain
stockholders concerning sale thereof,
for rlon-payment of assessments
In ordering the distribution of the judg-
ment<the court says:
The petition presented in this case by the
Grayson Board OF Directors shows to the court
that the official control of the Hale & Nor
cross Silver Mining Company is in dis
pute and in litigation which may be prolonged
indefinitely, and in terms asks that the court
lock up this fund for time just as indef-
Mite There is every reason why the court
should proceed and distribute this fund mme-
dlately. 1t is court OF equity; the court has
appointed receiver to carry the judgment
the stockholders accrued in 1887 1883 and 1882
the then stockholders or their assigns to
whom all equities attach, are the benenciaries
of the fund in court; distribution to the pres
ent stockholders is. in effect, a distribution to
,fr,I la,
been In the possession of the corporation; 1T is
in legal custody, and so recovered against the
wishes and the efforts of the corporation; the
title thereto is out of the corporation and never
was in the corporation. The cause is in equity,
and the chancellor must see to 1t that the fund
be equitably distributed. 1t Is therefore ordered
that the petition of G. w. Grayson and others
claiming to represent the Board of Directors
of the Hale & Norcross Silver Mining Company,
and asking that the fund In court in this case
be held until the final determination of the
controversy as to which of the contendfng
Boards of Directors is the de jure board OF said
corporation, and then to pay the fund TO that
board, be and 1t is denied.
1t is further ordered that the receiver herein
proceed, after five days, and under the direction
OF this court to distribute said fund to the then
stockholders of said corporation; that is to say:
Out of the Judgment collected, to-wit, the
sum of 1904. 447 II, there being already deducted
under orders of court the sum of 1894 80. be-
ing defendants costs. and the sum of &c.
Ill Sc, being plaintiffs attorneys fees, rs per
Npaid to the receiver account, and the sum of
$1,000 paid to the receivers attorneys on account
official stenographer of the court In the case
said receiver shall retain the further sum of
S6310 SIS for fees and Incidental expenses to be
hereafter determined and upon the balance re-
manning of 500, 800 said receiver shall declare
a dividend upon 112, 600 shares of the stock of
the corporation being at the rate of 81 SO per
share, and shall pay the same to the stock
holders of the corporation; reservins however,
of stock now in controversy between the COR
poration and certain stockholders concerning a
sale thereof. for non-payment of assessments
thereon, until the further order of the court,
and that said receiver report to the court from
| time to time what he has done under this
| order.