The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-01-26
c oMP LETE oLLAPSE
OF DAY. SMITH CASE
CONTINUED from rage u


stockholders elected the trustees to
perform the duties of the corporation
They had faith in the intelligence and
integrity of these trustees and upon
them TO exercise that intelligence,
which they are presumed to have, and
which they believed they had Now,
manifestly, all men are not gifted
alike; they do not have like qualifica-
tons. 1t is so in this case The evil
dence shows that most of these trus-
tees have had no experience in or as
practical miners; they knew nothing
about it, except as they have learned
from others. Now. manifestly. a board
of trustees in electing men of that
kind should say a board of stock
holders in electing men of that kind,
as their trustees cannot expect such
trustees to exercise the degree of dis
erection in the purchase, say, for in
stance that they would expect to be
exercised by men who are experienced
in that particular work. Now. take a
man who is experienced, as Mr. Nc
earthly for example, | do not think
that / have the right TO say that Mr..
Mccarthy must do this and that or the
other thing; but Mr.. Mccarthy must
look at all the EVIDENCE that is pre-
scented to him and il upon that evil
dence he in good faith reaches a con-
clusion, upon the exercise of his judg-
ment that it is a good venture for that
company to buy that property / think
that is as far as he would have to go.
as far as he could go; as far as he is
required to go under the law. Now, /
whether he regards as sufficient to /
the statement of Mr. Hershey, or the /
statement of Mr.. Winchell or the |
statement of Mr.. Clark. or any of these
experts. or all of them together, or
whether he regards none of them as
sufficient is a matter for him himself.
The question must come down to the
fact that as TO whether he exercised
his good faith. his Judgment regard
ing this question
Proper to Act On Mccarthy's Advice
Now, as far as the other trustees
are concerned, those who are not prac-
teal mining men. practically the same
rule would apply to them with the diff
terence that they would not be expect
ed to know as much about report ,
when they heard it as Mr. Mccarthy :
would, as clearly Also these other :
rustees would to a certain extent
perhaps to a large extent-depend up !
IN the recommendations of Mr. Nc
,arthy; and the fact that this might
become one-man board of trustees,
IS suggested by counsel. is not for the
curt to change. The stockholders r
lected board of trustees and il is in
heir power to elect other persons if
hey pleased to do so.
Now as ] say these other trustees.
hen this question was presented to :
hem. clearly. every one of them could
xercise his Judgment. He could ask :
uestions regarding report if he >.
'anted to. or if he was satisfied from :,
he advice given by Mr.. Mccarthy
nat the report was all right he was y
atisfied with it, why. he would be ex-
'cising his judgment. think II is
ny NHtit a AlbNAtt LUMINOSITY ana -.
ithout any consideration at ALL which -
mounts practically to bad faith
ould reach a conclusion that courts =. -,
equity ought to interfere with their .,
'tions 90
Now. in a general way. think that ~
'vers the question that has been pre- -
nted" ~
Hear Question Of Fraud.
The ruling of Huneke brought quite
extended protest from Mr.. Higgins.
no questioned the soundness of his
nclusions without effect The court ~
en- stated that the usual custom of co
owing plaintiff to adopt the order ~
proof had been followed, but that he 10
W felt that he should require the ''V
reduction of proof of fraud on the
TT of the Bunker Hill & Sullivan va
d get that out of the way. and this o.
u be taken up Wednesday, On this
mt Mr.. Higgins stated that proof OF ~
nd rested mainly upon proof that
star is worthless. and with evil 81,
ice on the value of the mine elm
ted. proof of fraud would neces- ''o
lily be circumstantial
Wednesday.
pom assembling yesterday morning
vas agreed between counsel for the
'osing sides to argue the question =,
ultra wires, involving the power Of TIC
Hecla company under the Wash
ton law to acquire stock in the Sui y
n Mining company and dispose of con
before further hearing on other '.e'
ses of action. Mr. Higgins opened ''''
argument and spoke throughout ING
forenoon and up to the middle of uen
afternoon. He confined his ar la
lent to an attack upon that part Of ''ic
contract between the Bunker Hill
Hecla which provides for altern- inns
annual control of the sullivan si'o'
ing company by the Bunker Hill
Hecla. He was followed by Mr.
inner, who was still speaking when q
t adjourned for the day He con- Jam
led that under the terms of thu drift
Il. ,l,, q .,..f.l - on