Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-09-16
ORDER SET ASIDE.
Col wall Loses In lila Effort to Restrain
Utah Copper co.

Judge Morse today sustained the mo-
ton of defendant 10 set aside the re-
straining order issued IN the case OF
COL Il. A. Wan W. the Utah Copper
company and the members OF lts board
Of directors The court also sustained
the motion TO dismiss the case as
against an OF the directors who are
non.residents Of the state. and also
set aside the services ot the summons
la these cases, This order applies to
all the directors with the exception Of
u. @. JacklIng who Is a resident Of this
state
The sui, referred 10 was filed By col
Wall sept q and was brought 10
restrain tie Utah Copper company
from increasing lts capital stock from
81 OoO TO 100000 and 10 stop an
Issue OF bonds iu the sum Of $4,000, 600 TO
build new min and "a railroad from
the oomDauy's property in Bingham 20
the ueW smeltar site at the point of the
mountain neov the lake.
The defendants are the Utah copper
company. e., NJ MaCNeill, Spencer Pen
rose, -, e. Jacklmg, Is. r. Babbitt, j.
b. HpWkins and X, Il. McIaren, the
other officers and directors OF the com
uauy The complaint alleged that the
defendants ut directors meeting,
held az Colorado Springs on or about
July 49, 1905 decided 10 increase the
capital stock OF the company as stated
above. notwithstanding the fact that
the notice of said meeting did not
mention any intention Of making such
Increase aud hence plaintiff had no no.
tee OF such luteltiOn.
10 was also decided at said meeting
lo issue bonds I'm the sum OF SO 900, 600,
convertible into the increased stock OF
said company at $40 per share at the
option Of the holder of the bonds, Soon
after the stockholders meeting Il Is
alleged that plaintiff consulted with
the president ~ the company ana was
Informed that he would have no right
to proportionate share Of the In
creased capital stock unless he Joined
with the other officers ana directors in
the sale NJ 81 per cent OF the capital
stock OF the company TO the American
Smeltcrs Securities company owned by
the Gusgenheims. at $40 per share. the
latter company being the purchasers OF
one half NJ the new bonds
Plaintiff refused TO join 40 the sale
for the reason that the stock now has
"a market value of from SIS 10 $50 per
share and hence the sale 40 the price
mentioned would mean loss OF so per
share Go plaintiff or me total sum Of
$4,000. or otherwise It would mean that
his present ownership Of oue-hfth OF the
capital stock " the company would
Doe reduced 90 only p per cent, making
hIs total loss '6i500O
10 was further alleged that the de-
PENDANTS were acting I'm collision and
had gonspired To make plaintiff come
40 their terms as they owned two-thirds
of the capital stock ~ the company
and hence controlled ne affairs, The
plaintiff further alleged that the laws
under which the company was incOr-
poiated do not permit Of the is-
suancC Of bonds convertible into capt
tai stock aud hence the action on the
board of dlrector7 I'M Issuing said bonds
ls Illegal
lie also claimed that 10 was not nee
cssnry % issue bonds in the sum named
as the cost Of constructing the ucv mill
and building the railroad 60 10 as
proposed will not exceed $1,000 900, and
4 that a legal Increase I'm the capital
/ stock could be made and sold for % sum
| far In excess Of tho amount necessary
| 10 make such improvements and thus
/ avoid bond Issue.
4 temporary restraining order was
issued but this is now set aside by or
: der OF the district court