The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-05-20

III MS written decree the court SdAS
that the evidence shows that the in
corporators and original subscribers
had paid for their stock in the COM
pany by an application of leases on
the Valley, Erca, CornucOpia and
Treasure lode mining claims in the
Tintic mining district, alleging that
these leases were worth $4,000, the par
value of the stock issued by the Treas
ure Hill company.
Part of a Contract.
1t is also shown that the incorporat-
ors obtained these leases from the own
ers as a part of certain bond contract
between F. 3. Cook. trustee of the in
cOrDorators on the one part. and the
Treasure Lode Mining company and
w. T. Ercanbrack and c. F. Ercan-
brack, the owners of the several claims,
whereby it was agreed that the lessor
should enter upon and take possession
of and mine for the mineral ores there
in, and should pay a certain part of the
proceeds as royalty, and that at the
expiration Of the several leases the les
see should have the option of buying
the several claims at a stated price.
which aggregated the sum of $50, 900.
The leases thus acquired were trans-
ferred to the corporation in payment
Of its entire capital stock Of S25 900.
Before the expiration of the leases
they were abandoned, because, as the
evidence shows, the corporation had ex4
pended something like $4,000 to get out
of the mines 900 worth of ore, and
the option to buy the mines at the ex-
piration OF the leases was not exer-
cised, and the corporation is now in
solvent.
Il find" says the court from the
+E--+ - e
value whatever and that therefore the
capital stock of the corporation was not
paid by the corporators as set out in
the articles Of agreement. The ground
of this decision in brief is that the
statute Of this state under which this
corporation was created, requires that
the property which has been conveyed
to the corporation in payment Of it's
stock shall be of the fair estimated
cash value for which it has been con-
veyed in payment of such stock. Fair
estimated cash value means the
amount for which The property can
with reasonable certainty be readily
converted or turned into money on sale,
or the amount with which it will with
reasonable certainty on a sale bring
money IN hand.
Subscribers Are Liable.
1.-THE supreme court of this state has
decided that where property taken i'm
payment Of stock is worthless, the sub
scribers will be liable as for unpaid
subscriptions. Under this statute, as
well as at common law, as between the
general creditors of the corporation and
the subscribers to the stock, where the
corporation has become insolvent, tina
stock subscribed for must have been
paid for in money or in moneys worth.
1.-The general creditors of this corpo-
ration are entitled to recover in this
action. because the articles of agree
ment by which the corporation was
formed did not state the truth respect
ing the value of the property taken in
payment of the stock.
"In this case the plaintiff is entitled
to have findings and decree in his ia
vor against all the defendants except
Mr.. Cunningham, D. c. Roberts and
Agnes Paris, who appear from the evil
dence not to be original subscribers but
innocent purchasers of the stock for
value.
The plaintiff must recover the
amount sued for except that the John
son claim must be reduced to S20e06,
and excepting the claim of F. 3. Cook,
who was an Incorporation, and extended
credit to the corporation IN such Wav
as to not entitle him to recover in this
action: and should therefore be dis
missed without prejudice, however, as
between the corporation and Cook or
his assignee"
The individual defendants in the suE
were:
Sharp Walker, w. H. Dodge, F. B.
Cook, n. W. Fitzgerald, G. F. Seyler,
c. F. Ercanbrack, W. T. Ercanbrack.
William Pischel. D. F. Walker, Jr.,
II - Z. w C.T
loway, n. r. Waterman and E. D.
Waterman, doing business as Water
man Brothers; J. A. Cunningham, Mrs.
David Depue Mrs. n. T. Ready, c. r.
Smith, Z. L. Sheets, Lewis Engals, Ag-
nes n. Paris and Mrs. s. Griswold.