Arizona republican., 1918-02-19
PLAN |S FROWNED LIN
 BY JUDGE LYMAN
Secured by Exchange of Property with Com pany Ordered Returned
 to Treasury Organization


 Judge Frank H. Lyman of this city, sitting as a special judge in the Ya- vapai county superior court during the trial of the suit which the stock holders of the Jerome Portland Cop per company had instituted against A. B. Frame, on Saturday handed down a decision which it is eX- pected will have q far-reaching ef- feet and will tend to definitely clear up the question as to how far a pro- mOter may go in the matter of se- curing stock in the company he rep resents. It is the opinion of lawyers and mining men generally that the ruling of Judge Lyman in the Yava- pal case will have the effect of stop ping the common practice of pro- moters securing large blocks of the stock through the machinations of dummy directorates, by voting the shares to themselves for some imag- mary services or for some other con- alterations of doubtful value.
 The Jerome Portland case was the first of it's kind to be brought under the provision of the state constitu- tion, which expressly prohibits q cor pOration from disposing of it's stock to anyone except bonafide subscribers who pay for the shares either by cash or through the performance of some legitimate services.
 In the Jerome Portland Copper company case, which had been insti- tuted against A. E. Frame, Judge Ly- man handed down a decision can ceiling the 469,90O shares of the treasury stock which the defendant held in the company and directing q Prescott banking concern, which held the shares in escrow, to deliver the shares over to the receiver of the company for restoration to the com pany's treasury.
 Judge Lymans decision terminated one of the hardest fought and most spectacular mining suits ever threshed out in the courts of Arizona, and has the effect of practically put ting the financial affairs of the Jerome Portland company back on the same plane as existed before Frame the promoter, succeeded in getting the company almost hope lessly snarled in d. tangle of legal con- troVersY.
 Frame organized the company dur ing the early days of the Jerome boom, and received a large block of the organizations stock for his ser vices. Later he secured possession of II mining claims in the Verde district and upon representations that the claims were of unusual value, he succeeded in getting his directorate to issue him about 1000 shares of stock in exchange for the claims. Later, the stockholders raised a fDnK oil h1t bo f1q worthless, and that Frame had bun coed the company when he put the deal over In order to allay some of the discontent, Frame later returned about 250, 900 shares to the treasury, but this was not sufficient to settle the matter. and the suit was filed in May by the minority stockholders to compel a complete restitution. The case came to trial a month or so ago, being heard by Judge Lyman. Shortly after the action was tried. Frame quit his job as superintendent of the 1 Jerome-Portland, pulled out the pumps, paid off the miners and l skipped out of the state, taking with | him the company's safe. The affairs of the Jerome Portland were in such i bad shape that a number of the stockholders asked the court for . receiver, and F. H. Dyer of Jerome was named in that capacity. It is Mir. Dyer who will receive the shares now held by the bank and restore them to the company's treasury.
 In his decision Judge Lyman di- rected the receiver to reconvey tC Mir. Frame the title to the Il mining claims. The court held that the claims were worthless. yet owing tC the fact that Frame had once owned them, he should have them back agair in exchange for his stock, regardless of their value or merit
 The order of Judge Lyman directed that the company appropriate a sun equal to one-tenth of the value of the shares recovered, as payment for tht attorneys who represented the plain tiffs This will bring the fees ot 1 Messrs. O'Sullivan, Morgan and Fa- vour to something like $23.000. figur- ing the valuation of the stock at 5t cent per share. The attorneys fe' can be paid in either cash or stock according to the courts ruling.
 Do not wait till tomorrow-phon that WANT AID. to The Republican apd dicnose of Or oct what yo,It yya n