Samuel Blatchford

“ In the present case, discovery was prayed for and made, the affairs of an insolvent corporation were settled up, the subscription to stock made by the plaintiff was substantially canceled, part of the proceeds of the assets of the company were applied to the repayment of the $10,000, and a decree for the balance was made against Tyler, the agent of the company, who had committed the fraud. ”

“ What was the statement made to the stockholders, at the end of each fiscal year, of the condition of the company and its business, by the president and directors, or any of them? (7) What meetings of the stockholders have been held, and what were their proceedings at such meetings? (8) How was the money paid in by your oratrix for her stock expended by the company? (9) How and when was the capital lost?'
The bill further prayed for an account of the assets and debts of the company; that the assets be realized as quickly as possible, and the funds arising therefrom be paid to its creditors ”

“ Our company have tho't it wise,-as many other M'f'g Co.'s who have not a large surplus of capital have also,-in view of the depression in business which causes payments to come in very slowly, to omit a semi-annual declaration of dividend. ”

“ Tanner, I would say that we have no trouble in borrowing all the money necessary for the conduct of the business upon its present basis, but the proposition to you embraced the idea (which we had been considering) of permanently enlarging the scope of our business by increasing our capital stock and getting additional office help. You will readily appreciate the difference to a man'f'g business between borrowing money, which may be called for at the pleasure of the lender, and having the same am't in the shape of a permanent investment ”

“ You are mistaken in supposing that the general condition of the finances of the country does not affect our business. It has caused R. R'ds to be months behind in their payments, as well as slack in their orders. on whom the business is largely dependent; but in spite of this the business of the last six months shows a profit over and above expenses. You will see, therefore, it is in the interest of all the stockholders that we have prudently determined to avoid weakening our treasury by withdrawing a dividend at this season. ”

“ Pr. (4th Amer. Ed.) 555; Wylie v. Coxe, 15 How. 415, 420; Oelrichs v. Spain, 15 Wall. 211; and Lewis v. Cocks, 23 Wall. 466. To the same effect are Kilbourn v. Sunderland, 130 U.S. 505, 514, 9 Sup. Ct. Rep. ”