Weekly Arizona journal-miner., 1907-09-11
TOLD UNTRUTHs IN SELLING THE
 STOCK.
(from Sinday's Daiiv1

 which was tried at the spring term of court, Judge Sloan, yesterday, handed down n decision in which he sustained the plaintiffs allegation that II. A.. Suttlc was guilty of making false rep. resentations when nc interested Doolcy in the defendant company. Judgment was given for defendant, however. on the legal point that the suit was no, instituted within one year after the fraud was discovered. The court holds that the date of the said "discovcry" runs from the time that the plaintiff had the opportunity to inform himself as to the affairs of the company; and does not date from the actual time of discovery. This decision should be of great interest to parties interested in stock companies, as it places upon them the responsibility of keeping posted.
 The text of the decision is ns fol. lows;
 l find, first, that the representations alleged in the amended complaint filed in this action to have been made by IT. A. Suttlc 10 the plniniiG at the time the latter purchased his stock were in fact made by Suttlc and sub. stantially ns alleged and were believed by plaintiff, at the time, to be true.
 l further find that said representa- tions. insofar as they related Co exist ing facts and conditions, were false and untrue and known to be false and untrnc by Suttlc st the time they were made.
 further find that the plaintiff, be. fore purchasing said stock, had full opportunity Co ascertain the condition of tho mining claims owned by the defendant, and the amount and vallc If the ore in sight, and made n per. sonal inspection and investigation of the property; and that during the year 1908, and thereafter, he had full op. portunity to learn what steps the com.
 
 erecting n mill, and to be informed as to the operations of the company and the amount of development work which was being done on the company's min. ing claims.
 l further find that the records of the company disclosed full information as to the number of treasury shares which had been sold, the amounts re. ceived therefrom and the commission which was paid thereon to the agents of the company.
 further find that the records of the company disclosed what had been paid in cash by the company in the purchase Of its property.
 further find that there was no con eealment praeticed by Suttle or by the company as to any of these facts. further find that plaintiff, as on' of the stockholders, was notified through n circular letter 10 the stock holders, signed by II. A. suttle, ant dated July 1, 1903, as to the number of treasury shares which had been sol' and number of shares remaining an sold, the amount realized from suel sales and the cash remaining on hand' and in the treasury, and that "a read ing of this circular letter would hay shown the falsity of the reprcsc ntation made by Suttle as to these items com plained of by plaintiff.
 I further find that al the time thi circular letter was written, C. VI Dooley, the brother of plaintiff, an who is in like situation with him a purchaser of stock, and who is show by the record to he n business assS ciate of the plaintiff, was a director O the company. and presumably fully In formed ss to the affairs of the con pany, and that plaintiff might hay learned by inquiry from said (. II Dooley the true condition of the al ? fairs of tn eeompnny at any time afts the latter became q director. The plNntif purchased his stock ? May, 1903. The original complaint ' this action was filed May goth, lso 2 The question arises under the fac 2 above shown whether tais action . barred by subdivision of Section ]. the act approved March i2, 1903, whi' reads as follows
 i "An action for relief oa the zrour 0 of fraud or mistake. The cause of a n ton in such ease not to be deemed a have accrued until the discovery, ' the sggrievsd party, of the facts co | rtituting the mistake"
 The statutes of many Of ,he stat