Cape Sable Co. Case

3 Md. Ch. 606
CourtHigh Court of Chancery of Maryland
DecidedApril 21, 1823
StatusPublished

This text of 3 Md. Ch. 606 (Cape Sable Co. Case) is published on Counsel Stack Legal Research, covering High Court of Chancery of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cape Sable Co. Case, 3 Md. Ch. 606 (Md. Ct. App. 1823).

Opinion

Johnson, Chancellor.

An injunction issued in this case to prevent the sale of the properly of The Cape Sable Company, taken in execution under a judgment obtained by Robert and John Oliver against the company, in Anne Arundel County Court. To the bill Sled, on which the injunction was ordered, the Olivers have answered; and, at the present term, the motion to dissolve the injunction was elaborately argued. Since the argument the case has been maturely considered. It is a cause of a novel description, demanding full reflection, not only from the character of the case, but from its importance in respect to the amount of property in controversy.

In the year 1812 an agreement was entered into between John Gibson, Richard Catón and others, and a company was formed to search for coal in Anne Arundel county; and, to enable the company to carry their objects into execution, Gibson, by a deed, executed on the 21st of June, 1833, conveyed several tracts of land to Charles Carroll in trust. By the agreement and deed all the interest in the land, and the works then or thereafter erected, and in the profits and emoluments were divided into sixty shares; twenty to Gibson; thirty-nine to the other persons, mentioned in the deed, and the remaining share to Gibson, to be disposed of for the common interest. Twenty-five out of the thirty-nine shares to [608]*608Richard Catón, and the residue to the children and grandchildren of C. Carroll, whose daughter was the wife of Catón.

Gibson, on the 20th of May, 1815, conveyed his interest to Addison Ridout and Joseph Jubere in trust for Gibson and wife during their lives and the life of the survivor; and after the determination of those estates, to the use of the other complainants in the bill mentioned. John Gibson and wife are dead, the former died in 1819, the latter in 1822, by which the beneficial interest in the premises became vested in the complainants as disclosed by the bill.

By an act of the General Assembly of Maryland, passed in the year 1818, the company was incorporated by the name of The Cape Sable Company. As so large a portion of the stock of this company was owned by Caton, and his connexions, lest the affairs of the corporation should be completely in their power, and all the property subject to their control, and to their disposal, the- act directs the manner in which the affairs of the company shall be conducted; to wit: by a president, two directors, and an agent. It vests in the corporation the power ‘to sell and dispose of their property, to mortgage the same or any part thereof with the consent of three-fourths of the stockholders, holding three-fourths of the shares, for securing of any loan or debt.5 The act of incorporation authorizes the company to make by-laws, &c.; but, lest the funds of the company should, by a majority, be applied to other objects than those in view, at the passage of the law, it provides, that ‘the company shall engage in no other manufacture,, except that of alum and copperas, without the consent in writing of three-fourths of the stockholders, holding three-fourths of the shares.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rankin v. Scott
25 U.S. 177 (Supreme Court, 1827)
Boyle v. Zacharie & Turner
31 U.S. 648 (Supreme Court, 1832)
Nathaniel L. v. Waddington
15 Johns. 57 (New York Supreme Court, 1818)
Skinner v. Dayton
19 Johns. 513 (New York Supreme Court, 1822)
Marquand v. President of New-York Manufacturing Co.
17 Johns. 525 (Court for the Trial of Impeachments and Correction of Errors, 1820)
Lowry v. Tiernan & Williamson
2 H. & G. 34 (Court of Appeals of Maryland, 1827)
Howard v. Levy Court
1 H. & J. 558 (General Court of Virginia, 1805)
Hampson v. Edelen
2 H. & J. 64 (Court of Appeals of Maryland, 1806)
Kennedy v. Baltimore Insurance
3 H. & J. 367 (Court of Appeals of Maryland, 1813)
Harden v. Moores
7 H. & J. 4 (Court of Appeals of Maryland, 1825)
Hanson v. Barnes' Lessee
3 G. & J. 359 (Court of Appeals of Maryland, 1831)

Cite This Page — Counsel Stack

Bluebook (online)
3 Md. Ch. 606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cape-sable-co-case-mdch-1823.