Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-01-25
BOURQUIN'S DECISION
PRICE INADEQUATE
UPHELD WITH COSTS
Decision Written by
Justice Clark Is Con-
Cured in by All.
Accounting for Ores
Extracted to Be Filed
Soon by Attorneys.
Special to The Tribune.

Special to The Tribune.
Washington, D. c., Jan. "a
The supreme court reversed
and remanded with costs the
Alice Mine case of Butte Mon.
day in which the minority
stockholders of the Alice Gold
& Silver Mining Co. are seek.
ing to procure a decree annull-
ing a deed of the company's
property to the Anaconda Cop
per Co., made in consideration
of the transfer by the latter
company Of 10000 shares of it's
capital stock to the first named
company.
The opinion of the supreme court
reversed the district court of Montana
and the ninth circuit court and upheld
the contention of the minority stock
holders on the ground that the consld-
Grafton was inadequate. It was held
that the lower court should have can
celled the sale when it found the com
pensation insufficient.
Minority Stockholders Given
The minority stockholders included
Peter Geddes, Joseph r. Walker,
Joseph s. Baert, Henry j. Everett,
Margaret Ann Meehan, Eugene Blum,
lsadore Baer, Alphonse Dreyfus, Leo
pold p. Freund and Alice Frey. The
defendants were the Anaconda Copper
Co., the majority stockholders Of the
Alice company, John D. Ryan, J. w.
Allen. w. d. Thornton, A. G. Carson
and q. s. Ferry. The decision, written
by Justice Clark, was agreed to by all
members of the court Justice Nc
reynolds. who said the court was COR
rect in reversing and remand;ng the
case, didn't concur in the manner which
it reached the decision to reverse and
remand.
Attorneys for the minority stock
holders set up four reasons why the
sale should have been vacated, but the
court upheld only the one as to in
adequacy of compensation.
Prince NEUTRALITY-SUSPICIOUS.
The hearing on the case in Montana
was before Judge George M. Bourauin.
Judge Bourquin decided that the price
paid for the Alice property was sub
stantlally inadequate and for this rea-
son as we'll as the mexnod of sale, and
Of the dissent of the Alice minority
the plaintiffs were en-
titled to relief.
The method of relief chosen by Judge
Bourquin was to order the property
sold at public auction, that if such
sale did not bring more than the value
of the stock given by the Anaconda
for it, which was $1.5OO,OOO the sale
should stand, and that the dissenting
stockholders should have their proper.
Eonate share of that amount of money
II they elected to take It for their
stock in Alice. if more should be Of
Tered for the property. the sale at
Lached should be set aside and the pro-
perty awarded to the successful bidder.
High Courts Findings
!. The court based it's decision on the
lndlngs in the lower courts that the
,rice was inadequate and said that the
act that no bid was received at
'ubhc offering was not evidence that
! scale could not have been made at a
higher price.
Evidence in this case.' the court
'aid. renders it probable that the
promoters Of the Amalgamated Cop-
'er company when it was organized in
S59 entertained dreams of controlling
ne supply and price Of copper in the
Interstate markets Of this country, and
q the markets Of the world, but we are
eallng here with the Anaconda COM
ANY as it was in 1911"
referring to the contention Of the |
that the sale should be an
ulled because it was negotiated be- |
Ween two directorates having q COM
1on membership, the opinion said:
Ryan represents Sellers.
"John D. Ryan, at the time Of sale.
Tas president and director Of the
lice company; he was also a director
nd general manager Of the Anaconda
In 1905 he obtained an op-
on on the majority of the Alice COM
any stock for 100000 and carried it
ntil purchased by the Butte Coalition
an Amalgamated subsidiary,
which he was a director and that
ompany voted majority Of the Alice
tock in favor of the disputed sale.
"The record shows beyond contro-
ersy that Ryan was the representa-
We of the chief investors in the en-
.rprise; that he dominated the con-
uct of the practical administrative
fairs Of the Amalgamated and Ana
,nda companies, and that he very
.rtainly was in control of the board
; directors of the companies which
ere parties to the sale of the Alice
roperties.
Relations Of Director.
'aThe relation of director to his
,rporation is of such fiduciary ma
(Conttnued on Page Two.l lj