Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-06-27
SAINT JOE CASE
IN SUPREME COURT
Judge Morse's Decision Regard
ing Levying Of Assessments on
Mining Stocks Reversed.
RULING IMPORTANT ONE.
only 10y Unanimous Consent Can Brig
ham Company Call ON share
holders for Funds.

Tho decision rendered by Judge
Morse of the district court some time
ago in tho case Of Ellen Gary et al VS.
st. Joe Mining company was revers-
cd by the supreme court OF Utah YES
tcrday The mining company, through
it's directors, but who were authorized
to do SO, by "a vote OF twothircls OF
shareholders. levied an assessment on
the stock OF the corporation not
withstanding that the articles If IN
corporation provides for non-nssess-
able stock. This proceeding was OPP
posed by Ellen Gary ana associates
and hence the matter was taken into
the courts to prevent the disposition
of 1851 shares OF stock at n de-
iinquent sale. Judge Morse assumed
that chapter 81. session laws. 1908.
would apply in this case and refused
10 grant the injunction prayed for
by the plaintiffs to prevent the defend
ant from selling the stock. The SUI
preme court took the opposite Wow
of the situation and ruled that only
the unanimous vote of all share hold
ers In non essessable companies or
ganized prior to 1903 can levy an as
sessment legally Chapter 81 gives.
therefore. non- assessable companies
organized since 1908 the right To az
sess upon the vote Of twc-thirds of the
shareh< lders at a meeting called for
that purpose.
The opinion is a vQluminous one
and its fun import viii be of great IN
terest TO all mining and other cor
porations organized under the laws Of
Utah. 1t is the 1irst time In the states
history that this phase of corpora
ton law ha3 been passed upon by the
supreme court.
It appears that the company was
organized in 1883. and that the capital
stock is divided into 100000 shares
of the par value of 81 each, OF which
the plaintiffs were the owners OF 49,
sS1 shares. Tho original articles Of
incorporation provided that the
stock of this company shall be non
assessable" and that under the laws
OF Utah In force at that time and mp
until 1903 the articles could not he
80 amended so as TO make the capi-
tai stock of the corporation assesa-
aelb without the consent of all the
stockholders. Pursuant to call
made by the board of directors
stockholders meeting was held Feb.
8. 1907. for the purpose OF amending
the articles so as to authorize the
board Of directors for the purpose
of paying the debts and cond ucting
the business Of the corporation. TO
levy and collect an assessment In the
manner and foSn provided by law.
At the nesting S19.636 shares of
the capital stock of the company We're
represented of which 6S5,t64 voted
for the amendment, 1s4172 against It,
12e,364 not being represented. AS
a result on Feb, Is the assessment
was levied amounting to 2 cents
share and the appellants not paying
1t was ordered on April is that their
shares be sold at auction because OF
this fact. A temporary Injunction
presenting the sale was obtained In
the district court and then the re-
spondents hereil filed demurrer
which was sustained by Judge Morse
the temporary injunction. however
being kept in force until the supreme
court might pass on the matter