Show L I r STOCK SALES r 1 a at FOUND LEGAL LEDAL t l I f Court Declares No Evidence of Fraud Apparent in Transaction The Western Loan and Building company and V V. R. R Madsen n vice pr president and general manager were of fraud and free tree Friday of charges misrepresentation in sale salt of the company's company's company's com com- Mrs Ella Averill and pany's st st. stock ck to Joseph P. P Averill her husband inI in I 1930 I Federal Judge Tillman D. D Johnson Thursday ruled against the the A in separate suits of ot recession asking each holding the return of there was no evidence of fraud or misrepresentation in the stock sale as alleged in the suit The ruling ended a day of or final arguments In federal court in which allegations of the Av that Mr Madsen and the company had entered entered en en- into a conspiracy to sell to each of them 25 shares of reserve fund stock of the company at a share were ere discussed pro and con The stock the plaintiffs declared Was V represented to them as treasury stock tock of the company compan when in reality reality reality real real- ity it was stock Mr Madsen owned They also charged the company was Insolvent nt at the time of the sale and that the stock had no value The defense refuted a principal allegation allegation al allegation al- al legation with a claim of indisputable evi evidence ence that all money from irom the theale sale ale lc of the stock went directly into the tr treasury sury of the Western Loan and nd Building company Judge Johnson Johnson Johnson John John- son held a ruling on the West Western rn States Realty company organized d in 1930 and through which the stock was sold was unnecessary since no evidence of fraud raud or misrepresentation tion had been shown Witnesses at the trial which started started started start start- ed December 27 27 included the Aver Aver- Ills 1115 Mr Madsen Lawrence W. W Smellier Smeltzer assistant secretary of the building and loan Joan company H. H M. M H H. Lund secretary of the company from 1922 to 1933 and Lincoln G. G Kelly c company auditor Attorneys were For Western Loan and Building company com com- pany H H. L. L Mr Madsen l W. W W. W v. v Ray and J. J Morris Christensen Christen Christen- sen sn for the plaintiffs A. A B. B Irvine I and end A. A R. R Barnes |