New-York tribune., 1902-07-25
HARRIS, GATES & co. WIN.
COURT DIRECTS THAT COLORADO FUEL
AND IRON BOOKS BE SHOWN
TO THEM.

The Knickerbocker Trust Company. the Atlantic
Trust Company, and Charles T. Phelps, the as
sistant secretary and treasurer Of the Colorado
Fuel and Iron Company. according to the decision
handed down yesterday by Justice Hall, in the
Supreme Court must permit Arthur j. Singer,
representative Of Harris. Gates Co.. STOCK
brokers' TO examine all books and papers connected
with the Colorado corporation. to enable Singer to
ascertain the and addresses of the stochold-
ers in the company. Harris. Gates & Co. hold 400
shares Of stock, of the par value OF $4,000 and
the market value or S2.lO00o0. and disagree with
the present management Of the company. Ihey
desired to obtain the names and addresses OF their
fellow stockholders, in order to ask them to CO.
operate in deposing the present directors from
power.
The Knickerbocker Trust Company is the trans
fer agent here of the Colorado company. The At
lantic Trust Company is its registrar Charles 4.
Phelps is in charge OF its Offices at No, Il Broad
way It was eoRtended by these companies that
any books held by them were their own property
and that Singer had no right TO inspect them ana
Mr. Phelps maintained that the Fuel and iron
company had office here for the TRANSACTION OF
business
."rbe stockholders have created the money and
created the corporation and also create Its d.
rectors and officers" says the justice IN the de-
cision Therefore It is the duty OF the ofcers at
all times rather aid the owners or the properly
under their control understand every fact re-
garding the management Of their property than
by hiding behind the strict letter OF the law IN an
effort to defeat their rights"
He declares that the Colorado Fuel and Iron Com
pany is a foreign corporation. required by law to
keep q stock book containing certain information
OF interest 10 and for the benefit OF the stockhold-
ers It Is not FOR the benefit Of the corporation as
such but for that Of the owners OF its property.
II can only act By its agents, and It must be fairly
presumed that the dealings In stock OF the corpora
ton IN question upon such large scale that
It's ordinary officers and employees could not accom-
plish the work For this reason the reasonable
conclusion is that the acts OF the corporation and
the preparation OF the books IN their possession
were in or such agency and In that sense
at least, the books may be said 10 have been pre-
pared by the foreign corporation. The fact that
the books kept by the trust companies contain more
or less information than Is required by the
cannot be ayailed or TO defeat the rights of the
stockholders. The relator is entitled inspect any
papers containing informant ton similar that re
Quired be in the stock book which Phelps has in
officer Of the corporation TO seek advantage of its
failure TO comply fully with the law"
"The attitude OF this foreign corporation and the
officer in charge OF its NeW-fork Office is TO say
the least" Justice Hail continues. somewhat re-
markable- This officer does not hesitate to say
that his corporation 10 acting in open defiance Of
the law, possibly with the idea that the penalty OF
such defiance Is only the payment OF a sum of
money. insignificant In comparison with the re-
sources Of the corporation"
At 2:30 O'Clock Justice Hall formally issued the
mandamus directing the trust companies and Mr.
Phelps permit the reiator 20 inspect the booAs
be opposition TO the execution OF the writs and
that Mr.. Singer and his would receive every
opportunity 10 inspect and take such extracts as
they needed from the books.