State ex rel. Biddle v. Superior Court

87 P. 40, 44 Wash. 108, 1906 Wash. LEXIS 795
CourtWashington Supreme Court
DecidedSeptember 27, 1906
DocketNo. 6301
StatusPublished
Cited by9 cases

This text of 87 P. 40 (State ex rel. Biddle v. Superior Court) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Biddle v. Superior Court, 87 P. 40, 44 Wash. 108, 1906 Wash. LEXIS 795 (Wash. 1906).

Opinion

Hadley, J.

An order to show cause why a writ of review shall not issue to review the proceedings of the superior court of Clarke county in certain railway condemnation proceedings was made by this court July 11, 1906. The petitioner for the condemnation is the Portland & Seattle Railivay Company, a corporation organized under the laws of this state. The petitioner seeks to condemn a strip of land one hundred feet in width across the lands of Henry J. Biddle and wife for right of way purposes. Certain lands are described in the petition as comprising the entire tract of the defendants through which the railway line has been located. The defendants’ answer admits the ownership of the land described in the petition, but alleges that they are the owners of a larger tract which is described as including what is mentioned in the petition, and that the whole of the larger tract described in the answer is owned and occupied by them as an entire tract as their farm and home. They allege that in [110]*110order that their compensation may be fully ascertained, it is necessary to determine the damage to the entire tract owned by them considered as a whole. The answer also puts in issue the averments of the petition with reference to the legal capacity of the petitioner to condemn. A hearing was had, testimony was submitted upon the question of public use and necessity, and the court found that the contemplated use for which the land is sought to be appropriated is a public use, and that the public interests require its appropriation. An order was entered condemning a strip of land one hundred feet in width, the same being fifty feet in width on either side of the center line of the petitioner’s location as staked out over and across the land described in the petition. It was also ordered that the damages should be ascertained by a jury, in July, 1906. Before any hearing was had upon the subject of damages, the order to show cause herein was issued, and further proceedings were stayed. The record was certified to this court, together with a bill of exceptions. A hearing was had thereon, and this court finds that the record presents a proper case for the writ of review.

The defendants first contend that the petitioner did not show that it is authorized to prosecute a condemnation proceeding. The proof showed the regular incorporation of the petitioner as a railway company. It is contended, however, that the evidence did not show compliance with the following provision in Bal. Code, § 4250: “Provided, that no such corporation shall commence business or institute proceedings to condemn land for corporate purposes until the whole amount of its capital stock has been subscribed.” The books of the corporation, properly identified, were introduced to show that the entire capital stock had been subscribed. The evidence offered we think was competent for that purpose. It is generally held that when one’s name appears upon the books of a corporation as a subscriber for stock it is presumptive evidence that he is such, in the absence of other evidence to rebut the presumption.

[111]*111“The records of a corporation are competent and sufficient evidence to prove subscriptions to its capital stock and to show whether or not the number of shares required by its charter have been subscribed, where no proof is introduced to destroy their effect. If it is shown that a person’s name appears on the subscription or stock book of a corporation as a subscriber or stockholder, or upon the books of commissioners appointed to receive subscriptions, this is prima facie proof that he is a subscriber or stockholder.” 2 Clark & Marshall, Private Corporations, § 454.

In Turnbull v. Payson, 95 U. S. 418, 24 L. Ed. 437, the court said:

“Taken as a whole it is clear that the evidence offered was amply sufficient to warrant the jury in finding that the defendant was a stockholder as alleged. Where the name of an individual appears on the stock book of a corporation as a stockholder the prima facie presumption is that he is the owner of the stock in a case where there is nothing to rebut that presumption; and in an action against him as a stockholder, the burden of proving that he is not a stockholder, or of rebutting that presumption, is cast upon the defendant.”

The above-stated rule is also supported by the following authorities : Glenn v. M’Allister’s Executors, 46 Fed. 883: Glenn v. Orr, 96 N. C. 413, 2 S. E. 538; Liggett v. Glenn, 51 Fed. 381; Marlborough Branch R. Co. v. Arnold, 9 Gray 159, 69 Am. Dec. 279; Rockville etc. Turnpike Road v. Van Ness, Fed. Cas. No. 11,986: 1 Cook, Corporations (5th ed), § 55 and cases cited.

It is further contended that the records of the corporation admitted in evidence did not sufficiently show a subscription for all the capital stock. The articles of incorporation show the capital stock to be $5,000,000, divided into fifty thousand shares of $100 each. The subscription for the stock, as shown by the records, is as follows:

“We, the undersigned, hereby severally subscribe for the number of shares of the capital stock of the Portland and Seattle Railway Company set opposite our respective names [112]*112and signatures, and agree to pay to the Portland and Seattle Railway Company one hundred dollars upon each share so subscribed.

Name of Subscriber. No, of Shares. Amount.

C. M. Levey, Trustee 49,995 $4,999,500.00

J. C. Flanders...... 1 100.00

C. F. Adams....... 1 100.00

S, B. Linthicum .... 1 100.00

John S. Baker ..... 1 100.00

James D. Hoge..... 1 100.00”

It will be observed that the subscription for the entire capí tal stock except $500 was made by C. M. Levey, trustee. It is contended that the subscription by Mr. Levey as trustee is not binding upon him personally, and is not a compliance with the requirements of the statute. The case of Livesey v. Omaha Hotel Co., 5 Neb. 50, is cited. That case was, however, decided upon the theory that it was not shown that a condition precedent necessary to bind the subscriber had been performed. That condition was that a given amount of stock should be subscribed before liability attached. The same was true in Oldtown etc. R. Co. v. Veazie, 89 Me. 571. also cited. Penobscot R. Co. v. White, 41 Me. 512, 66 Am. Dec. 257, is cited. It was held in that case that, in order to show the absence of a full subscription, testimony on the part of a subscriber was admissible which tended to show that the subscriptions were not made in good faith, Lewey's Island R. Co. v. Bolton, 48 Me. 451, 77 Am. Dec. 286, is also cited. That case was decided upon the theory that certain statutory regulations must be observed before collection may be enforced against the subscriber. The statute required that notice of assessments should be given, and if any subscriber or stockholder, neglected to pay for the space of thirty days after notice, the shares should be sold at public auction to the highest bidder, and the delinquent, subscriber was accountable to the corporation for the deficiency. The last case cited by the defendants upon this subject is Phillips v. Covington etc. Bridge Co., 2 Met. (Ky.) 219. It was held [113]

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Cite This Page — Counsel Stack

Bluebook (online)
87 P. 40, 44 Wash. 108, 1906 Wash. LEXIS 795, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-biddle-v-superior-court-wash-1906.