The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-01-09
Boston and Montana.


the recent court proceedings involv-
ing the Boston and Montana company
these proceedings are of a character
so significant that in most communities
| the like of them would engage close at
tention and be deemed to be of card
| lnal Importance.
To begin with, the Boston and Mon
tana company concluded, for whatever
reason, to reorganize under the laws of
the state of New York-the concerns
mercantile transactions are conducted
principally at eastern headquarters.
An element undertook to stop this re-
organization. In Judge Clancy's court
proceedings to enjoin the proposed re-
organization were started. An injunc-
ton was granted; on appeal, this in
junction was sustained by the supreme
court of Montana. ~ q
So far so good. The next step was
to go into Judge Clancy's court and
ask for the appointment of a receiver
for the Boston and Montana company
The law whereby court is guided in
the matter of the appointment of re-
ceivers is pretty clear-the average lay
man can easily understand it. In gen.
eral, a receivership is heroic treatment.
Under a receivership, the court prac-
tically becomes the manager of the
property; the receiver is an officer of
the court; the receivership means that
the property is in desperate way,
hot t.
hands of it's corporate officers-the court
steps in to save the property or some
of its alarmed stockholders from harm,
from possible dishonesty, from incom-
petent management or the like.
The capital stock of the Boston and
Montana company is in 100000 shares.
The portion of the stock represented in
the original receivership proposition
before Judge Clancy was 200 shares;
it had been recently purchased in Or
der to give standing in court to the
applicants for the receivership. Judge
Clancy granted the petition and ap-
pointed Kinds as receiver. From this
proceeding an appeal was taken. Mean
while, it transpired that there might be
question as to the propriety of this ap-
pointment, because, at the time it was
made. the supreme court was holding
under advisement certain other mat
tiers which had direct bearing on the
| merits of the case. So, another request
| for the appointment Of receiver bob
bed up in Judge Clancy's court.
in the name of fifty shares out of the
total of 100000 of the capital stock of
| the Boston and Montana company.
Judge Clancy, in district court, acted
approvingly on the preliminary pro-
ceedings in the second movement for
receiver and things, as far as his court
were concerned, were moving along
swimmingly. But, one day last week,
the supreme court shut off Clancy sum-
marily with writ which peremptoral-
| ly forbade him to touch the receivership
question or deal with it in any man
ner and ordered him to leave the whole
business absolutely alone until the su-
preme court looks into the matter
which it will do presently.
Meanwhile, the fluctuations in Boston
and Montana stock teach a lesson that
carries its own moral-every business
man in Butte can take it in without
a newspaper tip. In round numbers,
the Boston and Montana shares were
quoted at or near 240 at the time when
the company was attacked in the Butte
court. Those who planned the attack
knew what was coming-that is to say,
they thought they did. Naturally, sue
cessful legal proceedings against the
company, receivership schemes and the
like would have tendency to break
down the going price of the stock
there were men in Butte who were
prepared for the profits to follow a
drop, by the market process known as
selling short" There was money in
it, money the making of which, if the
programme went through all right, was
as easy as rolling off log.
| The programme did, indeed, start out