Show SUBSCRIBERS MUST PAl PAyi Treasure Hill JiU Suit Sut Goes Against I Defendants II I I II 4 I I JUDGE HIDES EllES IE OPINION 4 PLAINTIFF GETS FOB I NAY I 4 I Court Cour Says That Leases Which it Was Was Claimed WeI Were Worth Wor Were Worth Nothing and ad That Defendants Wo Who Are Stockholders ers 2 Must Pay Bill i iThe 4 The Treasure Hill Hi mine case has ha at last been decided in favor f vor of the plain plaintiff plaintiff tiff tf J R H Richardson In his findings and decree Judge lilies practically al allows allows allows lows all al that Richardson sued for thE amount awarded to Richardson as fore foreman foreman foreman man of the mine and as assignee of the th claims claim of other miners for wages wales be being beIng beIng ing in the neighborhood of In his written decree the court says sam that the evidence shows that the in incorporators incorporators InCorporators and original subscrIbers subscriber had paid for their stock In the com corn company company pany by an application of leases on the Valley Valey Erca Cornucopia and Treasure lode mining claims in the tha the Tintic mining district district alleging that these leases teases were worth the par val of the stock issued by the Treas Treasure ure nrc Hill Hi company Part Par of a Contract It I is also als shown that the incorporators ors rs obtained these thee leases from the tho own owners owner ers era er as a a part pt of ot a certain bond contract between F B Cook trustee of the In on the th one part and the tha Treasure Lode Mining and W F P Ercanbrack and C F Ercanbrack Ercanbrack brack brck the owners owner of the several claims whereby it was wa agreed that the lessor should enter upon and take possession of ot and mine for the mineral ores there therein in and should pay a certain part of the proceeds as a royalty and that at the thE expiration of ot the several leases the les lee lessee see should have the option of buying the several claims at a stated which aggregated the sum of The leases lease thus acquired were transi tras faed to the corporation In payment pa ent of its entire capital stock of Before the expiration of the leases leased they were abandoned because as the evidence shows the te corporation had ex expended expended expended something like to get out of the mines mine 1000 worth wort of ore and the option opton to buy the mines at the ex cx expiration pirton of the leases was not exer exercised exerciSed exerciSed and the corporation Is now ini in insolvent solvent solvent I find says the court from the I evidence that these thee leases lea es were yere of no value whatever wh and that therefore the capital stock of the corporation n wag wa wa not paid by the as set out in inthe Inthe inthe the articles artcle of agreement The ground of or this decision in brief Is that the tho Statute of this state under which this thi corporation was created requires that the time property which has been conveyed to the corporation in payment of its stock shall be of the fair estimated cash value for which it i has ha been b en con conveyed conveyed conveyed In payment of such stock stock Fair estimated cash cah value jalue means the amount for which the he property can with wih reasonable certainty be re converted or turned into money on sale or the amount with which it will wi with wih reasonable certainty on a sale brin br bring money In hand Subscribers Are Ae Liable Lible The supreme court of this state has decided dece that that where property taken in payment of stock Is worthless the sub subscribers subscribers I scribers will wn b 1 liable Heble as for unpaid subscriptions Under this statute as aswell aswell well wen as a at common law Jaw as a between the I general genera creditors of the corporation and the subscribers to the stock stock where the corporation has ha become insolvent Insolent the tha to stock subscribed for must have be bean n I paid for in money or in moneys worth The general creditors of f this Corpo orpo Corporation ration are entitled to recover in this action acton because the flip articles of agrees a ee ment by which the h e corporation was formed forme did not st sta state e the truth respect respects respecting ing hg the value value of the property taken In payment of the stock In this case ca the plaintiff is entitled to have findings and decree in his fa favor favor favor vor against all an the defendants defendant except Mr Cunningham D Th C Roberts and Agnes Age Paris who appear from the evi evidence dence not to be original subscribers but innocent purchasers of the stock Lou fort value value The plaintiff must recover the amount sued BUO for except that the John Johnson JohnI Johnson I son claim must be reduced to and excepting the claim claun of F B Cook I who was wa an and extended credit to t the corporation in such way as to not entitle him to recover In this action and should therefore be dis die dismissed missed without prejudice however as between the corporation and Cook Cock or his hi assignee nee The individual defendants in the suil su ware Sharp Sharp Walker Valker W H Dodge F B Cook N W Fitzgerald Fizgerald C F Seyler C F Ercanbrack W T Ercanbrack Ercanbrack I William D F Walker Jr D IX C Roberts M W V J 3 Cal Calloway Col Calloway loway N R Watterman and E D B Watterman Waterman doing business as Watter Water Waterman Watterman man Brothers J A Cunningham Mrs David Depue pue Mrs N T Ready C R Smith E L Sheets Sheet Lewis Lwis Ag Agi Agines Agne floe nes ne N Paris Fars and Mrs Irs S Griswold |