The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-07-09
Justice Forts Opinion In
Copper Case Applies to
All Corporations.
STOCKHOLDERS PRIVILEGE
Court Rules That Defendant
United Company Must Pre-
duce Accounts Not
withstanding Provis.
ions of Bylaws.

Justice ]. Franklin Fort, who
sailed for Europe today. rem
dered decision in great
copper suit in which he says stockhold-
ers of a company or corporation have
right to see the books of concern,
under the New Jersey statutes. no matt
ter how the bylaws of the corpora
tion read.
Last March Alfred f. Skinner. coun-
sci for Thomas M. Hodgens. of Butte.
Mont made application to the court
for an alternative write of manda-
mus. compelling the United Copper
Company to produce its bond in New
Jersey for inspection.
r. Augustus Heinz, the Montana cop
per king. controls the United Copper
Company, which paid dividends for
year on s45.O00.00O of common stock at
the rate of per cent. per year. making
total payment on common and pre-
ferred stock OF SO. 3.450OOO. though It was
alleged the earnings did not exceed
81 ,000, 900.
The conclusion Of Justice Fort Is that
"the evidence is such as to justify the
issuance OF the alternative writ and re-
quiring the respondents to make answer
thereto, leaving the final determination OF
the rights Of all the parties on the applicn-
ton for the peremptory writ"
II have carefully gone over the entire
case Justice Fort states. "anh an con-
vinced that there Is studied purpose on
the part OF the respondent to prevent the
reator from examining in any respect
Whatever into any Of the affairs of the
company in which he 10 SO largely inter-
ested The reports which have been made
to the stockholders meetings by the pres
ident have been most general. No details
have been given
After a brief reference to the fact that
the United Copper Company, through its
officers and agents, had refused to produce
the books upon the demand Of Mr.. Hodg-
ems, who owned stock In the company to
the par value of $4,000, the opinion de-
clares 1t was alleged much testimony was
taken to establish the allegation that the
application for inspection of the books was
not made In good faith. But to this view
Justice Fort says he is not inclined to
yieid, holding that the proofs show the
application to be one which a stockholder
has a right to make. Continuing, the opin-
ion says:
''The proceeding here Is the proper pro-
ceedlng under the statute and. indeed, was
the remedy at common law. By section a
OF our corporation act II Is provided that
every corporation shall maintain prin-
cipal office in this State and have an agent
In charge thereof, wherein shall be kept
the stock and transfer books for the In
spection OF all who are authorized to see
the same. and for the transfer of stock.
1.-THE Court of chancerY. or the Supreme
Court. or any justice thereof. may" JUS
tice Fort said. upon proper cause shown.
summarily order any or all Of the books
of said corporation to oe forthwith brought
within this State. and kept therein. at
such pace and for such time as may be
desierated IN such order, and the charter
Of any corporation falling 10 comply With
such order may be declared forfeited BY
the curt making such order ETC..