New-York tribune., 1906-10-13
uTRsCH WILL RECISION
,rU TRIAL ORDERED.
court Says Transaction Is "ReIieUed
Of PoatiUe Fraud.

,s,s Division handed down a decision
lhs - the case Of Mrs Minnie T. Hirsch, in
yesle'-,. and as eNecUtrix under the last VIII and
diVianA.y = ferdinand Hirsch and others. re-
'ssiI AGAINST Edward X Jones, individually
sponae1 executor under the said will Of Ferdinand
sno = - other appellants. The counsel for the
Hts we're David Mcclure and Edward "
s7p',-'' III. Charles T. Bostwick represented the
-,ondents. -,
-,sfntins sued as stockholders OF the Ferdi-
us-sch Company. domestic corporation seek
nan. -, the directors and officers an accounting
~ -,o,evs alleged TO have bcen vronsfully ap-
toT - ~ rnisapplied. The removal Of the off,
pTop's 5i-ectors was also asked for The opin-
~ u--ir.en hy Justice lnEraham and all the
~ .-stjees concurred. The Judgment appealed
ou- = -svs-sed and q tr1al is ordered Win
,,s,s 70 the appellant ,c
-. 15i-s,f, died on July ls. 800 HIS VIE Mrs'
-. p Firsch. was appointed execctriX, and
,s,,ssrr Jones was made executor BY the
-. ,-,s+ was created Of the residue Of the
80 N invest the same and aTply me income
- - the benefit of the testator's VIE during
. .-,o-irv n his children.
.-s time of his death the testator was the
$50 of,t or 80 shares OF the company.
- bsd been organized TO take over a business
= been owned By AIr. Hirsch. he becoming
i.sa-+ ~ fhe company. Nj Hirsch. from the
Ts ,,,s rrgsrfzation OF the company. had re-
- q - 1s-v Of $4,000 year until short time
,,.-s his death when the salary mad been raised
80, z-~sr TIE defendant Randolph Ludwig
" y /, -, secretary and treasurer OF the corpora
- -,,e-vine salary. and continued as suen 20
- ~ the action The business was the man
80 ~ cigars AT Key West Shortly after the
- ~ NJ IIirsch. Nj Jones. who had been a
60 - the corporation from its organization
vss elected president .
= rf. opinion Justice IngFahaTn says 1lA' many
.-rss had been made againsr Jones as 10 ms
f.rTsY o
!. TrT moi Ia necessary TO notice any OF them eX-
-. those that were sustained
Justice Iugrsham then says
ne court found that the plaintiff The testator 5
vidoE induced 10y fSise s--l. 1. - o5iti,I ~
nlsiS ne ,~n-- 10 consent that he be elected presl-
a., nd take charge OF the affairs or the com
Dsrv Bur II 10 ne that is lnlIIi'lerlI Li.e
E-s.o-e - lie company. who We're elected oetore
@ seafh Of the tesrator and when he controlled
Il held rhe meeting on August ., LSJi s.ScIeG JO.
.--.ss5s~r - and axed his salary al Sl.Hv month.
" - -Ss hoard Is entirely ir1raatertal Thus the
directors who were auth9r.zed 70 eecI Ise PSS I
-. -or seem that the consent Of Mrs. Hirsch
was asked by The directors or mat IAsE aceeG n :
reoessaTs OF --e -estgaII- II does not appear that
yoass voted al the election or for the resolution
fhsi fixed las salary
The Judgment was given against Jones for sA,ooe.
,-oyrrnE. with interest 20 nearly $4,000. alleged
= rs-s been wrongly converted 10 his own use by
Mr. Jones Justice Ingrahasn continues;
7, is sought 70 sustain this Judgment upon, the
grounds that. because Jones owned me conToil!Is
f-tsresr IN the corporation. as trustee ne was cls-
9ua.dsd from beng elected president Of the com
80 avd -rerefare the corporation can recover
hack The salary II had paid 20 nm as such lrustee
! car md 10 support Tor this contention
Justice Iug-aham says, after reviewing all The
.z-5a7ca mat he does ror think the corporation
vas emitted 10 tle salary paid 10 Jones ss presi-
s.r. The court also gave Judgment for &al,go
against Jones Ludwig Grd Frederick Kopf Ihey
,pplied this amount % protecting certain stock
xhch had been purchzked by and held On margin
,,- Ferdinand HI-sch at the time OF his death.
Asu this transaction. the justice saws that GER
AZ tdings q fact present the case apparently
oabzn q money upon collateral security gwen
s5 nav be regarded lelleylug the TRANSACTION
Cts element OF positive fraud