Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1910-05-10
COURT RENDERS
STOCK DECISION
Continued From Page Two.

(COntlnue0 from rage TWO.
are general and settled rules and
bind the courts of the state in
dealing with foreign corporations.
L Machen on Corporations, us to
TIT.
The discussion has been COM
plicated somewhat by the fact that
there exists in some states a third
class of corporations. which may
be conveniently called homestead
ed" corporations, being foreign cor
porations that have been forced to
attempt the status of domestic cor
porations by positive legislative act.
1t has been argued earnestly that
this class of corporations exists in
this state, on the principle that a
corporation engaged in business in
this state submits to the laws Of
this state and the jurisdiction of its
courts. Without complete domesti-
cation by legislative declaration the
courts have not accepted this dos
trine, except in limited extent.
The tendency is to treat them as
foreign corporations, as citizens of
the states of their creation. not
citizens of this state. Our legisla
ture has not yet created any do
mesticated" corporations, so we
may dismiss them from our dis
cussion, and thus eliminate some Of
the cases cited that deal with this
class
Many other cases cited are elm
mated by distinguishing between
debts due from corporations to in
dividuals and shares of stock shown
by the books of the corporation to
be owned by individuals. This has
been discussed and substantial
difference shown, arising out OF
the fact that the corporation has
in the case of issued stock really
parted with the property the 'egis
latures have declared the shares
to be. When property in the
hands of corporation is attached
it is held by the corporation to
await the outcome of the suit,
when debt from corporation is
garnisheed the same course is fol
1owed-it is paid only in accord
ance with the outcome of the pro-
ceedings against the person &c
whom it is due. In neither of these
cases is the corporation embarrass-
ed at all nor are any of its rights
jeopardized. But if it has issued
the stock it has parted with a
certain property that it retains only
limited control over; there is
nothing left in it's hands to attach
except certain rights that it has
withheld for it's own protection.
"Garnishment at law, as to shares
of stock, is not the same thing a;
garnishment of debt owing by
the company, or of property held
by it in bond Ashley versus
Quintard, 80 Fed. 81
1T is contended that in this pro
ceeding the plaintiff adopted at.
ership and binds all persons. These
tachment and not punishment as
his method of reaching the stock
The distinction between the two
is not great as it was at one time
and if we adopt that difference as
stated in 60 Pac. 977, the methot
used was punishment, while in Cal
ifornia it may be described BY
either term. 43 Pac. I'LL. The
expression used in the QuintarG
case cited above is: ''The attach
ment was served by gar
nishment,' so it seems that as t.
that case no distinction need be
applied, for it was the same kline
OF attachment as used in the case!
before us.
While the general rule is that
a foreign corporation which e
amenable to process in another state
may be subject to garnishmen
there for anything 1t holds within
the state, or for any debt it owes
generally to the principal debtor
and not specially in another place
it cannot, without special legisla
ton to that end. be reached b!
garnishment of the stock of mem
ber." Ashley versus Quintard. 81
Fed. "a.
In conclusion the following pas
sages are quoted from authorities
to indicate the modern views of thu
property value of certificates o
stock and the recognition of CHI
bearing of public policy against th'
necessity for registration:
Delivery does not invest thu
transfer with the ownership OF thu
shares in the sense that no furthel
act Is required to perfect hi
right. Notwithstanding HIS havins
parted with the certificate an.
transfer. the original transferor
who is entered as owner In the Ger
tifcate and register. Continues Il
be the only shareholder recognized
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