The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1927-07-07
M M'MANUS LOSES
In FULTON SUIT


bond broker, against William NJ Full
ton, northern Montana oil operator,
IN an effort u obtain stock III lh-
Fulton OH company and dividends
valued at $56,5S1 came to an abrupt
termination in the Toole county dis
trict court here Thursday afternoon
when Judge j. j Greene denied mo-
tions of the plaintiff for a directed
verdict and declared that the plain
tiff could recover nothing The
failure Of McManns 10 comply with
the Illinois blue sky law was difecl.
" responsible for the action OF the
court
The Fulton-McManus trial opened
June p with ] w freeman OF the
legal firm OF Freeman, Thelen &
Frary, j. A. McDonough and Arthur
Jardine appearing for the oil oper-
ator, and William Scallon of Helena
and the firm of Slattery & Tighe for
the plaintiff. Evidence in the case
was not fully presented until Wed
nesday afternoon when the plaintiff
moved for directed verdict on both
Of his causes for action.
Argued on Wednesday
These causes set oHf that Fulton
was indebted to the plaintiff for $685.
081, representing commissions on the
sale OF stock in the Fulton Oil com
pany and 81 per share dividend on
stock in the company distributed
Nov. 13. 1925, and $4,000 as the
value of 1000 shares oil stock earned
by consummation of negotiations be-
tween Fulton and William Mckinley,
Chicago capitalist for the sale ~
Fulton stock.
The motions were argued until II
Wednesday night and the debate be,
tween the attorneys was continued
Thursday until 2:30 j. M. when
Judge Greene denied the motion for
directed vedieis on the ground that
the plaintiff COULD recover nothing
due to the fact that tho plaintiff
own evidence constituted an affirm
ative defense.
The decision Of judge Greene it
was stated. WAS based on the fact
that McManus lad failed to comply
with certain provisions Of the Illinois
blue sky law This error Of McNan-
MS consisted OF failure to file re-
ports with The stair securities com
mission BIZ 0lnpa1l3e daHifipg 10 sell
stock within he state This over
sight Of failure. according to Judge
Greene. constituted technical de-
tense and bar I'd any recovery for
services.
Statement by Court
Il find myself in 4 rather peculiar
situation declared Judge Greene.
Il feel that The merits Of this case
are with the plaintiff and | feel that
he went out Of his way to sell this
stock to his relatives and friends in
Illinois. He apparently had the be-
lief that it was good proposition
and they did get good proposition.
Il further feel that he turned all
the money received from the sale Of
the stock to the defendant and his
associates in this state. As mat
er Of equity and right it is my belief
that lie IS entitled to his commissIor
under the contract that was made
back there
The trial OF the case was bitterly
contested with both sides raising
technical questions The surprise
in the litigation was sprung BY the
defense when A. G. Hentz, member
Of the Illinois securities commission,
and 4. P. Ward, Chicago attorney
and former Illinois assistsnt atitrney
general. were introduced as witness
es. Both witnesses testified as TO
the Illinois blue sky law and The fail
ure Of McManus to comply with its
requirements.
The Illinois offidials testified chat
fhe law was enacted for the protect
ion Of the public and that any person
or company selling stock must make
a report with the securities com
mission The commission exercises
police powers McManus failed to
file the necessary reports.
Had Low Rating
The Fulton Oil company stock, ac
cordIng to the witnesses. ali the time
It was offered for sale III Illinois was
held as class Dn securities, which
under the Illinois law are highly
speculative and iii the lowest rating
the Fulton oil company
developed commercial producers. jus
tifying the faith 81 both McManus
and Fulton.
McManns was used by the defense
as an adverse witness TO prove that
all sales Of Fulton Oh company stack
ON which he claimed commissions
were negotiated ii Illinois His tes
Eimony was frank. but sHbstantiatea
The statements Of the Illinois state
as to the fact thar no prom
er report had been made to tile Sc
curities commission.
Other w1tesses for the defense
were Nat Taylor Isabelle Matllisanl
who testified as To the copying Of
certain records oI the oil company
N. e. Wright and Fulton Fulton
was examined and cross-examinad
Eor period of two days
The McAIanus Fulton litigation has
unusual attention, due tu
Ihe prominence of botl parties and
Eo the use Of sections Of the statutes
rarely resorted tO The case 0fie
Iated in Great Falls Nov. 30, 1925.
when McAanus cnased Fnlion's AZ
rest on criminal charge Of dispos
(continued On Last Page)