The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1917-03-13
Favorable Decision

opinion that affects great many
people and which has been awaited by
the community at large with much |
interest. 1t was in the suit to recover
subscriptions to the stock of. the Otto |
mobile Company, which was attempt
ed to be organized in Mount Holly in
January, 1912. Several persons sub
scribed to the stock of this company,
but some Of them paid certain per-
centage OF the amount they had agreed
to take, while others did not pay any
thing. The concern went into bank
ruptcy and Robert 2. Ceilings was
made the trustee. He tried to get pay
ment and. not succeeding. decided to
make test case OF the affair, SO he
sued Walter Allen and Abraham
Saltzman, in order to ascertain
whether any Of those who had refused
| to pay could be made to do so.
The case was tried before Judge Car
row. without jury, and the court de-
cided that the defendants must pay for
| the par value of both the preferred and
common stock Of the company in the
sums for which they had subscribed,
with interest on the same from the
date when the defendants were obliged
to take the stock.
This decision was appealed from and
the case was taken TO the Supreme
Court. The principal purposes of the
corporation, as set forth in the certifi-
cate it filed, was to manufacture auto
mobiles, automobile and motor Access
SORES and supplies OF every class and
description, including any and all
parts Of vehicles Of all kinds, or any
other goods pertaining to the automo.
bile business, or otherwise, which the
corporation might determine to manu-
facture. In addition to this there
were lot Of other things mentioned
which the company might buy, sell
and deal in, on commission or consign-
ment; in fact the business mentioned
was very general and included about
Everything that could be considered in
. mercantile way, with power to bor-
ROW money without limit, by the issue
of bonds and other negotiable instru-
5ments.
When the signatures were obtained,
Those who attached their names to the
jpaper did not have any idea that so
lmnch latitude was to be allowed and
there were other conditions in the
papers uiod bnab were 30 entlfely d111er-
e,,t f-o,,, x,,ha+ x,.-s =, -, :. .,,1..o~,.t;.
~>>s .AS.11 " A1es "sts - sAto eeosciA poaoaA
blanks that the eigners baked on nav
Imont, claiming that some OF the c0ndi-
fxs<>..s - - -. sta1,.5 49,
sloiAs AA"u NV Dcen iuiHiiou anu tAae
more was being sought to be covered
i tnan they nao agreed TO.
/ The court has nrbsld This idaa end
after Rafting the facts related above
rendered the decision as follows:
= : srr,,a,, !, 80 .h.t 81. ,,-r,,ss. a.
which, th< banIrT,nt s,,.nrnf;oy, was y,ired
4 are not oniy Tar different from ana lar more
noseT ro-nTsrv rsfar-ss - n the Jsfs-dsTfss
1 subscription Contract was to n. or0anizrd
INIT that fhev ~ not .,,v ~ tss, H.
g s+ et y, ns 80 - ~
at .,,c - an me nv ~ q sne
VVy~Le ~ pisf~s-I~l;~ - ar 49,. -.set-
srS ss5 Iii - a. fste 49, As 80 49,
S f. ~ ph;i. ass.s, o''' s1 Sal oz'es
Tqs 80 - -. .'A5 5s;4s t,. - = a
4 49, - fxSx - 49, -s-ows anu = 81 ~
tjsac,-e shst ~. . y, III ~ IL ~ ~
s-;,ti, 80 ssh h - ss n.ns ~ 49,
= -. AZ S - ns = 1uasi ss2szno,as1
sF<<J ~ .;ts,. et .u la 1919. ~
cs-e 49,; - a. k.s-ek - telna-..eu .1e
- s.s !. sas now na-Atuks Sohgor ~
s =, . - - ~ 1. aol purposss entiLe1y ulnsr
q J5 ~ A L 49, yL.kanSl:y RIlopo5eo ns
go - - h - SsS As 49,: IN III, sls cnanSe'
eI ;t; IS ~ ~ - snS.r A1s- 1uss cieAIvs
49, tssasgI " ny ApRel4ne wa NOT mat OF
. -l.Vw ~. - giterL ms anu tneir
s 4loasss y purpess1 otper man tnose 70 when
t;s msss ss axIe ~ q p approprlatea st the
s s Is -zus1 ~ Us nus contract
A ssl@s - II heAlOe sup5eEipefs' was 70 Jake
y tl 800 u Es. Jersey corporauon 70
- saas.s - ~ gIk1naze1s having specineq
- ~ . sleSaa ~ 1 ~ ~ eaptai stoek, ana
"a - els4.su l0E 1ne purpose OF carrying into
The intended c soTolrs4 ss name q
secondary Importance That It should be or
4anizeu unnet sne iaws oI tne STATE OF New
ia aEu 20 Ie elotneo VIII an me powers.
s a.au iSpe-ve ~ me gIo1ect9n, anoroeu py
t tleee la"s, was q primary importance 80.
-. va ny Anoen. y me capltai STOCK BUT
ll.ole iint'o5.s1t was the purpose 10 Wnicn
s,,I n,9nsys u Ut kentlemen VINO signed these
,rs ispslou csse.lSaees wa 70 pc devoted
5;ts 49, 49, LION .ne 1872 con
-f -. .sy sno1 sL q useo Ior tns
~ fh 49, 80 - ~ ~ - M act slgneu