The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-11-08
Joe Bowers Extension Directors
Make an Error.
PROTEST OF sTocKHoLDER
LEGAL PROCEEDINGS BEGUN
AND COMPANY WEAKENs.
Two-cent Assessment Rescinded and
Another For One Cent Ordered
Encouraging Reports From
Yankee Consolidated = Farrell
Mill Working Well.


The Joe Bowers Extension Minins
company, F. A. Druehl, 3. F. Wood
ward. f. E. Wilson, J. A. Keyte and
James T. Jennings. directors, were
made defendants yesterday in an action
;ecoHmenced by A. w. Mountney to re-
strain defendants from proceeding with
the levy and collection of an assess
nent OF cents share upon the COM
pany's capital stock, which assessment
Tails que on the goth inst
Judge Cnerry issued a temporary re-
slralnlng order and directed the defend
ants TO show cause on Nov 10 why the
injunction should not be made perma-
nent and why also they should not be
restrained from using the company's
1uhos 10 Speculate on the outstanding
stock or the company
I'D support of the petition for an in
Junction the complainant an owner of
l,VVU shares of the company's capital
STOCK, sets up that, according to its ar
ucies of Incorporation, no assessment
or more than l cent a share can be
levied, and hence the cent levy is
void
For further cause Of action the pc
titioner alleges that at a meeting of
the board of directors held on Oct 10,
when the assessment was levied. the
following action was taken, as shown
onded that James E. Jennings be in
structed TO purchase q, 900 shares of the
Joe Bowers Extension Mining compa-
1y's stock for the use of the company"
1t is then charged by MIR. Mountney
that in pursuance of this official action
AZ is the Intention of the directors to
use company funds for purchasing
shares of stock from the stockholders
and conducting an unlawful speculation
70 the detriment of plaintiff and other
alehoJdeTs
Mr. Mountney, through his attorneys,
Pierce. Critchlow 8, Barrette, secured
an order from the court about ten days
ago directing Secretary Druehl to ac-
cord complainant the right to inspect
the company's books. His conclusion
to secure an injunction preventing the
collection of the assessment and also
the purchase of stock from sharehold-
ers with company's funds is sequence
to his discoveries.
Mistake In Copying.
Soon after Judge Cherry's restrain
ing order was served upon Secretary
Druehi yesterday the directors of the
company had a conference and sent to
TIE court house to get a copy of the
original articles of Incorporation filed
in the Office of the county clerk.
Secretary Druehl stated that accord
ing TO the Office copy Of the document,
there was no limit stated as TO what
assessments should be, but that no as
sessment could be levied oftener than
once in thirty days.
The examination of the official pa
pers, he says, showed that Mr. Mount
ney was right and that whoever copied
the papers left out one line which the
directors, before levying the assess
ment, supposed had been inserted be- |
fore the papers were filed.
When the members of the board of |
directors discovered where the error |
was they forthwith met and passed the |
following resolution:
sPesolved, That assessment No. of |
of cents a share levied by this COM |
pany at a meeting of the directors held |
on the 18th of October. 1899. be and the |
same is hereby rescinded, for the reason |
that the articles of incorporation speci- |
fically state that no assessment shall /
exceed ! cent per share. the error hav-
ing been made by the board of directors I
on account Of an office copy of the ar
ticles of Incorporation. which reads
that IN assessment may be levied not
cftener than once in thirty days, but
not limiting the amount of assess.
ments.'
After resembling the late assessment
the directors levied another of 1 cent a
share, in accordance with the articles
OF Incorporation.
Now that the directors have ac-
their error the case, so far
as the illegal assessment is concerned,
will likely be dropped, but battle royal
IS expected when the annual stockhold-
ers' meeting comes up next week.