The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-11-19

and delberaon the question of the the thirty
five thousand $35OOOOO) dollars gone upon the
hearing After hearing evidence the subject of the
stock the time of its alleged conversion
the signed decree adudng that the respondents
tace Egan frauduently converted their
the of hiryfve thousand ($35 100000 dollars cash
and thousand 10000 shares of the padup stock of the
corporation requiring said respondents pay said of
money and deliver said stock to the clerk of the Court for the
benefit of the corporation default of such delivery pay
the benefit of the corporation twenty dollars
every of stock delivered From this
decree the case to this court appeal
The first question which arises, and the only
argued whether or not below erred in refusing
receive evidence support of the respondents the
amendment to the BILL
The allowance of amendments pleadngs is a matter per
hap largely within the discretion Of the court Such amend
should be allowed however except under such
and upon such will prevent doing
injustice any of the parties concerned Whether in
this the amendment the bill properly granted after
the close of the evidence question which has been
raised by counseand which need be decided The amend
having been granted, of the opinion that
respondents entitled the averment they
finally permitted do and introduce evidence sup
port of such answer they offered do The only charge
made by the bill originally filed that the respondents
paid for the McCorston lands twenty five thousand ($25
100000 dollars in cash and twenty thousand ($20 0OOOO dol
lars in stock and that they faudulenty the
stockholders that they had paid for said lands the sixty
thousand $6OOOO0O) dollars and by of such faudu
lent representations obtained from the corporation the
sixty thousand ($6O0OOOO dollars the price of lands
and fauduenty converted the surplus of thyve thousand
$3.50 100000 dollars their use; and the only relief
sought aside from the general prayer that respondents be
declared for the corporation of the said of thirty
five thousand (s35 oOOOO dollars The only presented
whether the respondents guilty of the fraud
charged with reference the single transaction and whether
there fraudulent conversion of the named.
decree and be supported by only the
evidence but also the peadng 1t be broader than the
pleadng The respondents entitled to rely upon this
rule in framing their and the production of their evil
dence and of 1t is that in
their original the respondents forth that they
ceved from the corporation sixty thousand 100000 dollars
in cash and thousand 00O shares of padup stock in
payment for all of the lands leases and options which they
conveyed and transferred but under the facts they
derstood and claimed them be- this proper and necessary
in order fully deny and the aveent of the bill that
the sixty thousand $6oOOOOo dollars cash payment
for the conveyance of the McCorrson lands only The
respondents claim that just prior the incorporation of
the company they controlled number of lands leases and
tons other than the McCoson lands and that all of this
property including the McCorston lands conveyed and
transferred the corporation the price named gross
and 1t charged in the bill orgi
na filed that the stock of the value of hundred and
twenty thousand ($12O 100000 dollars any part of
ferred the decree had been rauduenty converted
improperly received by the respondents.
The amendment the bill raised and material issue
therein for the first time charged that receipt by the
respondents of the hundred and twenty thousand $2O
OOOOO dollars of stock fraudulent and that said stock
should equity, be returned by them the corporation 1t
sufficient say support of the ruling excud
ing the evidence offered, that the amendment introduced
change the value merely of the property alleged have been
frauduleny converted The amendment only charged
of different property but also charged conversion
fraud other than that specified with reference the thirty
five thousand (S35 OOOOO dollars An entirely and dis
is presented by the amendments the pleadings