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Show WEST CACHE GETS VERDICT FOR S15M50 SALT LAKK. May 9. A decision In the suit bruiiKht by Iho West Cache Sugar company Against J A Hendrlckson and Lorenzo N. Stohl wns rendered yesterday by Judge W II. llriunel of the Third district court awarding to the plaintiff a' Judgment ot $150,850, with Interest from June 6, 1917. The findings, ot tho court constttutd u collection ot tho final claim or tlie plaintiff us decided ut tho conclusion of tho arguments In the enso. The defendants ntitiounceil they would appeal. The original complaint, filed a year ugo In June, nsked for a Judgment Judg-ment of $297,000, ot which $197,000 wns alleged to havo been made by tho defendants as unlawful profit In tho a-fljll. 41 H ' ' " promotion of tho sugur company und $100,000 was asked as damages. In . vT t 4 .14 ' . the course of the suit, tho claim an to profits wns trimmed to $150,850 und It Iwus decided by counsel for the plaintiff to eliminate tho claim for damages In order that a clear case, might be made as to whether u promoter pro-moter may chuuge his status as ug-eii't'Wone ug-eii't'Wone of vendor ntta vlll wth-. out. a full 'disclosure ot the facts, to ... the stockholders tu the company concerned. con-cerned. Certain claims and Hens . agulnst tlie company also had been adjusted pending tho final trial ot tho ault. NEW SUIT ON ItEUKlVEttHUU A notice was received by John Jensen Jen-sen atid'FrankE.. Holnian ot the counsel fnr the plaintiff that arbu-raents arbu-raents wilTbe heard tomorrow morning morn-ing neforo Judge J. D. Call of the First Judicial district at Logan, on the demurrer filed In the suit Instituted Insti-tuted there by L. D. Nalsbltt, soh-ln-law of Hendrlckson, asking for a receivership re-ceivership for the West Cache Sugar company. This action was taken pending the decision In tho suit before Judge Bra-mel Bra-mel on the ground that tho companys funds were being wasted in litigations which were unfounded. Judge Brumel, according to tho preamble in his decision, bases tho opinions rendered upon tho controlling control-ling principles In all decisions given in like cases during the past twenty-five twenty-five years. Tho law of promoters, he contends, begun with tho memory of many men stlinivlng. Hendrlckson according to the find ings ot tlie court, began tho promo- i tlon of tho sugar company In thu spring ot 19 1C, and did not abandon ( this promotion aa was contended by . the defendants on September 30, 1910, or nt any other lime. , Stohl did not havo any option on tho Knight plant, and ho entered Into tho promotion of the sugar company with Hendrlckson about tho middle ot October, Oc-tober, 1'JIO, In tho opinion of tho court. "Ono may beemo n prompter by entering en-tering into tho movement ut any stage prior to tho time when tho corporation cor-poration Is completely formed and furnished with an Independent board. Ono who lias to do with tlie formation forma-tion ot a corporation und occupies a position In tho movement that enables enab-les hm to control or influence tho uct and policy of tho corporation during Its formative period, Is a promoter nnd continues to bo a promoter until tho corporation Is completely formed and passes Into tho control of an Independent In-dependent board," says tho decision. DUTIES OK PHOMOTEH Discussing tho obligations ot a t promoter tho courUioldu that author- one who becomes a promoter of a itles are unanimous In holding that corporation thereby places himself in a position of (luasl-trdsteeslilp and that ho Is charged with certain obligations obli-gations to tho corporation ho Is forming form-ing and that, to a certain extent, to thai definite body or Individuals who later become stockholders. "There is such a Uilng as eiiultnble ftuud und constructive fraud nnd there Is common law fraud," snys tho opinion. "Thoro la lingua usporn (harsh language) and lingua lenls (lenient language.) Iu'rulatiun to thu plaintiffs' alligation alliga-tion that the defendants fraudulently anil falsely represented that all tho stockholders would como In on he giound floor basis, tlie court states I that llngtm leuls will in tljs case as well us lingua nspcra. ,; Tho measure of recovery for a corporation against a promoter who had made a profit on a properly which ho had acquired during tho promotion without a full disclosure nn to the material facts in the case, Is tho amount of the profits made, Which rightfully. In that case, belong to the corporation, according to the decision given by Judge Bramol. |