Salt Lake Tribune | 1901-03-12 | Page 1 | Smelter Trust Wins

SMELTER TRUST WINS New Jersey Court Denies Application to Permanently Per-manently Enjoin Stockholders From t I Increasing Capital Stock I 4 Also Denies Application to Restrain Directors of Company From Purchasing the Plant of Guggenheim Sons in MexicoMain Point Discussed Chancellor Was Whether the Guggenheim I Plant Was Worth the Price It Was Proposed to Pay for It Jersey City N J March nIn Chancery chambers today Vice Chan cellor Stevens denied the application to make permanent the injunction restraining re-straining the stockholders of the American Amer-ican Smelting Refining company from Increasing the cupftal stock of that company from GjOGOOOQ to 100 000000 and restraining the directors from purchasing the plant of M Guggenheims Gug-genheims Song In Mexico The Chancellor In his opinion said I the courts could act only where there was a question of fraud It did not come within the Jurisdiction of the court the Chancellor said to question the wisdom of the directors actions The ViceChancellor read his decision The main point discussed by him was whether the Guggenheim property was worth the price it was proposed to pay for it The ViceChancellor concluded con-cluded that nothing had been shown that would warrant the Issue of a permanent per-manent injunction restraining the American Smelting Refining com Tiarfy from purchasing the property He said the petitioners in putting a value on the Guggenheim interests had failed to take into consideration the good will and business of the firm He could not see that the directors of the American n company bad disregarded the lawn any manner The action vas brought by the holders hold-ers of over 27000 shares of otock The petitioners Were William M Donald Stephen y White Abraham Sartorlus and Henry A Seamans of New York and John W Gordon and William Bo I Curtiss of South Orange The price which it was proposed to pay for the Guggenheim Interests was 347000000 While the petitioners claimed that those Interests were not Worth more than 22000000 Richard V LIndabury for the petitioners peti-tioners announced that the case would ho taken to the Court of Errors and Ap neal