The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-04-17
STOCKHOLDERS NOT
LI5BLE FOR DEBTS
Decision of Importance to Min
ing Companies.
TREASURE HILL CASE
LEASE AND BOND HAVE SOME
VALUE.


An important decision was rendered
by the supreme court yesterday. in a
case Involving the liability of stock
holders in mining companies, that viii
have much to do in. removing anxiety
from the minds of incorporatorss and
shareholders IN mining ventures where
the question of Individual Liability has
had heretofore a depressing influence.
The -desis.on IS IN the case OF ). *, Rieh-
A4qson, respondent VS., the 4 Measure
". n. DoaSe, +. =. COOK, ". Il. Ercan-
brdck, u. F.. kfcanDrack AVstilaIn
flschel and others.
IN this case the defendants, as incor-
perators q the nllnlng company. Sc
cGreufa lease on anu bond 10 purchase
the. Golden Treasure and three adj
Jacene nl3ning Gains in 4intlc disr.f let
the lease anu bond beng turned IA lor
the paid up, non Ass ssaDIe capital
STOCK o. $s2,ve0s issued 10 each or the
incorporates The property was
worked 10 the extent of aoout $4,000
expended, ana ABOUT $4,000 received
from the sale Of ore, when operations
ceased. All Of the debts and working
EXPENSES, less the ore safes, were met
by the shareholders paying voluntary
contributions. but finauy tne company
became insolvent and a Judgment of
Sz42z was given by Judge lines TO the
the shareholders indiVioNaliy. 1ne iO@ er
court hetd that none OF the shareho.d-
el'S OF the treasure Hill Mining conn
pany had ever paid anything o. Value
Tor 'uhelr stock, and could eIaam no eN-
emptlon OF their private property from
the lien of the Judgment awarded
against fhem Judge niles also ned
tfaat the property OF the company was
OF no value From this hn0ing an APP
peal was taken.
4 flar rfifSf allaSFiQf1 ear1SiTarad nv fnea
supreme court in IT'S opinion was
whether, under the facts disclosed 0y
the evidence and the law applicable, the
stockholders are liable TO creditors of
tions to- its capital stock. After
an exhaustive review, the opinion no. ds
that the lease and bond on the property
had a reasonable market value equal
to the amount OF the capital stock.
that the law does not contemplate in
the business of mining the application
of a rule that would discourage invests
ments in explorations for ore in a
mineral country; that the Shareholders
in the appellant COMPANY acted with
honesty of purpose, and that they paid
full value for. their stock subscriptions.
The opinion also lays down the rule
that there IS nothing sacred about the
par value OF stock in mining transac-
The remaining question considered by
the appellate court is whether the
shareholders are liable under the con-
stitution and the law for the amount of
their unpaid stock subscriptions to pay
the debts of the corporation The opin-
ion holds that it was not the intention
of the trainers of the constitution nor Of
tn legislature to nix such an individual
liability when the facts are as shown
by the evidence in the record of this
case ~
The opinion, reversing the judgment
[ of the lower court and Remaining the
case to be disposed OF according TO law,
! was written by Justice Bartch and con-
Cured in fully by Justice Baskin- Dis
trict Judge Hart. who SAT in the case
/ in place OF chief Justice Miner. dis
scented from some of the principles laid
down b. the opinion, but concurred IN
the judgment.
Appellants side Of the case was pre-
scented by Richards & Ferry for all eX-
cept defendant D. Z. Walker, jf., who
was represented by Pierce. CrTtchlow
( & Barrette. The respondent was reps
resented at the trial in the supreme
court argument by r. b. shepard and
! Patterson & Meyer