Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1901-06-21
SUIT INVOLVING $4,000.
Great Western Mining and Manufac-
turing Company, l.. c. Black, Re-
eeiver, VS.. B. D. Harris Estate.


States circuit court in Brattleboro
Monday afternoon and Tuesday fore
noon 1t was the suit of the Great
Western Mining and Manufacturing
company, l.. c. Black of Cincinnati o.,
receiver, VS.. the b. d. Harris estate,
Charles A. Harris ct ais, executors.
The receiver alleged that as a result
of stock and bond transaction Mr..
Harris's estate was liable in the
amount of $4,000.
Eminent counsel were present at the
trial of the case, including l.. c. Black
of Cincinnati partner of Senator
Foraker. Harlan Cleveland of Cincin-
natl and Senator William p. Dilling-
ham of Montpelier, all for the com
plainant, and Judge e. l.. Waterman
and Hon. J. l.. Martin of BrattlebOro
for the Harris estate. Decision was
reserved.
The case was begun five years or
more ago, and at intervals since then
additional testimony has been taken,
making over 1000 pages of typewrit-
ten matter. There were also a large
number of reports and exhibits in the
case. Practically all of this mass of
testimony was taken by Lawyer Cleve-
land None of the testimony was TAX
en- by the counsel for the estate, so
that it became necessary for them to
read it all over and assmilate the
whole case, in addition to devoting
a large amount of time in the prepare
ton of an answer, etc. The opening
argument was made Monday after
noon by Lawyer Cleveland. after which
the court adjourned to Tuesday.
Judge Waterman made the argument
nd NTr C1aUp1anH m a0p
the closing argument
The Great Western Mining and Man
ufacturing company is located at Ash
land, KY, and is engaged in coal min
ing. At the time when Mr.. Harris
was connected with it the company
owned over 1000 acres of coal lands
and the mineral rights in 1000 acres
more, over 100 houses for miners,
large store, hotel, tipples, which
were used for dumping coal into
barges, also a large number of boats
and barges, railroad tracks and all ap-
planes for mining coal.
B. d. Harris and his brother, the
late Cords d. Harris of Keene, John
Carlisle of Cincinnati and his brother,
G. w. Carlisle and three others bought
I'D the 100000 stock of the company
in 1888. paying for it 80 cents on the
dollar. The four men named owned
nearly all of the stock, Mr.. Harris
and his brother together owning three
fifths. They were also directors and
officers of the company, and at the
time they bought it the property was
bonded for 100000
Suit was brought against the COM
pany in 1892 and l.. c: Black was ap-
pointed receiver. From 1889 up to
that time debts to the amount of $780,
600 had accrued against the company.
After the appointment of the receiver
the business was sold by auction on
foreclosure proceedings, was bought
by a committee of the bOndholders,
the company was reorganlzed. stock
to the amount of $35O,OOO and
bonds to the amount of 100000 were
issued. and during the first three
months xk9t-the llSsinessS was operated
by the receiver $1,000 was cleared,
which shows that the business could
be operated at profit.
After examining the records of the
transactions of the company previous
to his appointment, the receiver, in
1895. brought suit against Mr.. Harris,
continuing it against the estate after
Mr.. Harris's death. Briefly, the re-
ceiver claimed a conspiracy on the
part of the directors to sell bonds for
as much as they could get out of them
and put the money in their pockets,
and he held that each was jointly and
severally liable.
The complainant claims that in 1888
the company contemplated issuing
bonds and in November of the same
year they issued $4,000 worth of
stock, when they divided among them
selves. In the spring of 1889 the COM
many negotiated with Elliot, Johnson
& Co. of Wilmington, Del, for an issue
of 5000 900 worth of bonds. Elliot,
Johnson & Co. said they would not
he able to sell the bonds unless one
half tina, amount of stock went with
the bonds. In April, 1882 the stock
holders and directors voted 10 issue
800 600 more of stock provided the
stockholders should receive so cents
ON the dollar for the stock out of the
nroceeds of the sale of the bonds and
stock.
Elliot. Johnson & Co. sold the whole
of the 100000 worth of bonds ana
the stockholders received for their pro
ceeds SIS 900, of which B. ID. Harris
received $500. The receiver seeks
to recover this amount on the ground
that the proceeds of the sale shOulu
have gone into the treasury of the
company. that they furnished the STOCK
as a bonus and should receive no pay
for it from the proceeds of the sale,
in short that they had no legal right
10 transfer the stock in the manner
they did and receive pay for 1t. AND
he further claims that the Harris es'
tate is liable in law for the full amount
the other stockholders received, on
the ground that he participated in an
action taken by the board of directors
and in that way consented to their
receiving their shares. He also claims
that the Harris estate is bound to pay
par value for all stock issued by Mi
Harris, he never having in fact paid
for it.
The counsel for the estate claim that
the directors and stockholders acted in
good faith and believed the property
was more than ample security for the
bonds and would prove to be good pay
ing property; that they had expended
large sums in improving the property
By way of opening new mines and were
entitled to take stock themselves and
were not obliged to transfer it to pur
chasers of bonds without some com
pensation; that in fact Mr.. Harris was
offered opportunity with his brother tc
furnish the whole 1900 shares and re