The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-11
LAW THAT OPENS STOCK BOOKS
CONSOLIDATED NATIONAL BANK
CASE TO BE APPEALED.

A. the Appellate Division Declares the
Law, 1t IL the RiGht OF Every Stock
holder TO Ascertain the Names OF the
Others, No Matter what His Purpose.
The decision OF the Appellate Division Of
the Supreme Court rendered on Friday
that stakeholder In any company ia en-
titled to inspect the stock books Of the COM
pany and make list of the stockh holders,
even though he makes the list IN order to
enable him to trade in the stock, was widely
discussed yesterday. The case will be
appealed, as it involves a right Of privacy
which is considered by corporations to be
Of considerable value.
The case in which the decision was rem
dered was that Of Joseph W Lorge, broker,
against the Consolidated National Bank Of
this city. Lorge owned ten shares Of stock
In the bank, called there In business hours,
and asked to see tho stock book. He was
allowed to eIamineit, but when he began to
copy from it the names Of the stockholders
that right was refused. He brought action
for mandamus to compel the bank to allow
him to copy what names he wished from the
stock book, Justice Mccall refused to grant
the order. Lorge then went to the Appel
late Division, which has decided In his
favor
He admit ed that he was q dealer In stocks
and bonds and that he desired to obtain a
list Of the banks stockholders In order that
he might negot late for the purchase Of
stock. In the opinion Of the Appellate
Division. written by Justice Hatch and
concurred In by all, II Is pointed out that
the United States revised stat utes provide
that the president and cashier OF every
national bank shall keep list Of the names
Of shareholders which shall be subject to
the inspection Of all shareholders and
creditors Of the association. The stock
corporation law OF the State Of New York
declares that every stock corporation shall
keep a stock book which shall be open
daily for inspection by stockholders and
Judgment sreditors' who may make sa,, es-
foreign corporations to keep a stock book
in the same manner as domestic .corpo-
rations and provides for the right Of ins pee
ton. Cont inuing, the decision saws:
Authority. is cited to show that the
that they have jurisdiction in actions q ainst
national banks and have exercised the
same In due course These authorities
establish that the relator had the right OF
Inspector Of the stock book at a proper
time ana place. Inc rl4nt OF inspection
thus given is to inform the shareholder
Of the facts appearing In the book, SO that
he may act thereon He is entitled to all
Of the information disclosed by the book.
It is not to be presumed that he can carry
in his memory all Of it's contents; and as
the inspection Ia granted for the purpose
Of informing him concerning the matter,
he has the right to make such copies and
memoranda as will make the inspection
effectual not only by conveying to his
mind the contents OF the book but also
by enabling him to retain the same In such
form that he may act thereon for any legiti-
mate purpose.
1.-THE right Of inspection, therefore. car
ries with 1t the right to make such extracts
from the book as will enable the shareholder
to retain the information disclosed by the
inspection. Doubtless the Court has power
to withhold an inspection for an Legitimate
purpose, and may regulate the time when
the inspection shall he made. But where
it is sous ht for q legitimate purpose and
the application il made during business
hours the right to such inspection Is man
datory.
"The relator had the right to purchase
this stock OF the bank on such terms as
might be agreed upon between the owner
and himself, and ne had the right to resort
to the stock book for the purpose Of ac-
quiring knowledge as to who were it's stock
holders and to preserve such information
in permanent form by making a copy of
the Names As Ia disclosed by the record,
this was his object in making demand for
inspection and taking memoranda there
from"