The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-04-09
in SUPREME COURT
Person Buying Stock Gets Only
What He Pays For.
Suit Is Result of Oil Deal in
Sedgwick County.
STATE MAY USE APPEAL RIGHT
Decision Reached in Case From
LeavenwOrth County.
Refusal to Compel Liberal to
Deliver Railroad Bonds.
STATE MAY USE APPEAL RIGHT

When a person buys stock in a Kan
sas corporation he receives only such
legal and equitable rights as the ven
dor has to bestow, and cannot claim
full authority ordinarily asserted by
an innocent purchaser. That was the
decision of the supreme court today
when it reversed the Sedgwick county
district court in a suit brought by j.
c. Lilley against the Sterling Oil &
Refining company
Eugene Jackson as secretary of the
oil company was shown to have issued
to himself 232,500 shares of the com
pany stock without compensation and
authority. This issue was subsequent
ly annulled by the state blue sky board.
One issue of 5000 shares had been
assigned by Jackson and it later
passed into possession of Robert H.
Smith, who held it in trust for 1. A.
O'Shaughenessy, who then sold it to
]. c. Lilley. Lilley's agent presented
company's books Such transfer was
refused and suit was filed. Justice
Dawson in an opinion today said.
fraudulent issues of stock do not re-
ceive an immunity bath, like CONNER
cial paper when they pass from hand
to hand in the usual court of trade.
Each succeeding purchaser gets just
has to sell and no more"
Public Rights Supreme.
The state of Kansas cannoti be de-
MED right of appeal from the probate
court when an order is issued releas-
ing a criminally insane person from
the state prison. This was the holding
of the supreme court today when it
reversed the Leavenworth county dis
trict court in an action brought in
behalf of Harve B. sWad1eigh.
Must Build Road First.
The supreme court refused to com
pei the city of Liberal to deliver rail-
road bonds in the absence of the build
ing of the railroad. This decision was
made when the court denied writ of
mandamus sought by the kansas and
Oklahoma railroad
Liberal voted $4,000 worth of
bonds for aiding construction Of a road
from Forgan, Okla, to- the Seward
county town. a distance of twenty mine
miles. The road constructed 2,675
feet of switch track and sought to Sc
cure the bonds The town stood pat
and mandamus proceedings were in
stigated.S The court refused to issue
the writ on the showing made by the
road.
The supreme court today issued an
order of disbarment against Fred s.
Macy of Hutchinson, based on recon-
men0dIlOnS OF commissioner dp-
pointed by the state bar examining
board. The accusation against Macy
contained fifteen counts and was sup
plemented by twelve additional counts.
Macy. who formerly was engaged in
the practice of law at Liberal. was
cited for disbarment several years ago.
A long list of unprofessional acts was
charged against him. The findings
of the court today were made on re-
port filed by F. P. Hetttnger of Hutch
inson. as commissioner in the case.
Infants Are Exempt.
Infants of tender years are not pre-
sumed to have discretion and are not
amenable to disabling effects of con-
tributory negligence. That is the
holding of the supreme court in a
damage suit from Wyandotte county
where parents sought to recover for
death of a minor child by a street car.
Military Provision Retroactive.
A resolution of the Fraternal Bene-
ficiary society, suspending its consti-
tutional provision that a member for
feits his membership by engaging in
military service is retroactive, the su
preme court held, in affirming a judg
r.