Taggart ex rel. Mason v. Perkins

41 N.W. 426, 73 Mich. 303, 1889 Mich. LEXIS 1128
CourtMichigan Supreme Court
DecidedJanuary 18, 1889
StatusPublished
Cited by31 cases

This text of 41 N.W. 426 (Taggart ex rel. Mason v. Perkins) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taggart ex rel. Mason v. Perkins, 41 N.W. 426, 73 Mich. 303, 1889 Mich. LEXIS 1128 (Mich. 1889).

Opinion

Champlin, J.

This is a proceeding to try the right of the respondents to renew a mining corporation organized on April 4, 1853, for the term of 30 years. The case stands upon demurrer by the respondents to the Attorney GeneraTs replication to their plea to his information.

The information sets up that the persons named are stockholders in a corporation called the “Pewabic Mining Company,” purporting to be a renewed corporation, and for the space of one month last passed and upwards, at Hancock, in the county of Houghton, in this State, have used, and still do use, without any warrant, grant, or charter, the liberties, privileges, franchises of being a body corporate in law, fact, and name, by the name of the “Pewabic Mining Company,” purporting to be a renewed corporation, and by that name to plead and be impleaded, to answer and be answered unto ; and also the liberties, privileges, and franchises of mining, smelting, and manufacturing copper, iron, and silver minerals and ores, and for acquiring, holding, selling, and conveying [306]*306all property, real and personal, necessary or convenient for carrying on the same; and during all the time aforesaid the said persons have usurped, and still do usurp, upon the said people; and praying process against such persons to answer the people of the State of Michigan by what warrant they claim to have, use, and enjoy the liberties, privileges, and franchises aforesaid.

To the information the respondents interposed a plea, setting forth that they were stockholders in the original Pewabic Mining Company in and during the year 1883, prior to the time when the 30 years fixed by the articles of association by which said company was formed would expire, and have ever since continued to be, and still are, such stockholders.

The plea also sets up the exercise of the functions of a corporation by the Pewabic Mining Company during said 30 years upon a certain quarter section of land in Houghton county, Michigan, the location of its mine; the direction of the lode of copper, and the dip of the vein, and the necessity thereby of purchasing other land in order to continue to operate such lode; the purchase, in 1879, of such land, paying therefor $275,000, raised by assessments upon its capital stock; the knowledge of the shareholders paying such assessments that the lode on the land so purchased could not be explored and exhausted by mining during said period of 30 years, nor for many years to come, — the desire and purpose of the stockholders in making the purchase being to obtain a renewal' of the corporate existence of said Pewabic Mining Company for another period, commencing with the expiration of said first period of 30 years, running from April 4, 1853; that by mistake or oversight no steps were taken to extend the time of the continuance of the corporation before the time limited by the articles had expired, but the officers [307]*307and agents continued to carry on its business of mining, and levying and collecting assessments, after the 30 years had expired, until the directors became aware that such time had expired, and then they were advised that a new •corporation could be formed, and the property of the Pewabic Mining Company could be transferred to it, and each stockholder in the old corporation could have issued to him the same number of shares of stock in the new corporation which he held in the old, which was done, ,and the Pewabic Copper Company was formed, and the property of the Pewabic Mining Company was transferred to it for the nominal sum of $50,000; that this action was ratified by more than two-thirds of the stockholders in the old company, and only about one-sixth of the stock voted against the plan. The vote was taken on March ^6, 1884, and on March 31 in that year the relators in this case, as stockholders in the old company, filed their bill ■of complaint in the circuit court of the United States for the Western district of Michigan, Northern division, in equity, against both the old and new corporations, and the -directors of the Pewabic Mining Company, to restrain them from carrying out the plan of. reorganization, and for other relief, including the winding up of the affairs thereof, and the distribution of its assets among the shareholders. An answer was put in and proofs taken, and upon a hearing upon the merits a decree was rendered in the cause on May 4, 1886, which decree is appended as a part of the plea in an exhibit. From this decree both parties appealed to the Supreme Court of the United States, and the suit is still pending and undecided. By the said decree the continued existence of the Pewabic Mining Company was recognized and provided for, and special provision was made in said decree that in case, upon the offer 'of the . property of the Pewabic Mining Company at public auction for sale, there should [308]*308not be a bid for the aggregate of the property and assets-of said company in excess of 150,000 above the amount of the debts of said company existing at the time fixed for such sale, then the said arrangement for the sale of the property of said ' Pewabic Mining Company, approved at said stockholders’ meeting above set forth, to the Pewabic Copper Company, should be carried out, as provided by the resolution adopted by the said stockholders of the said Pewabic Mining Company at said meeting.

By reason of the aforesaid suit, the proceedings therein, the decree and the said appeals therefrom, and the pendency of said suit in the Supreme Court, undetermined and awaiting final hearing and determination, the said corporation, the Pewabic Mining Company, has continued, during all the time aforesaid, and still continues, to exist, as a corporation, and has not been at any time and is not dissolved, ‘ and its property and business have not been closed, settled, or disposed of. These respondents refer to the said suit in equity, the pleadings, decree, and appeal therein, as a part of their plea.

The plea then sets forth that the dissolution of such corporation had not become complete, nor has it yet become complete, and that a special meeting of such corporation was called, to be held on February 4, 1888, under and in pursuance of Act No. 37 of the Laws of Michigan, approved March 19, 1887, for the purpose of directing the continuance of the corporate existence of the Pewabic Mining Company for such further term, not exceeding 30 years, as might be expressed in a resolution for that purpose. The plea then sets up specifically the proceedings by which it is claimed the continuance of the corporation was effected. The resolution passed by such meeting reads as follows:

“ Resolved, That the Pewabic Mining Company hereby extends and directs the continuance of its corporate exist[309]*309■ence for a period of thirty years from April 4, A. D. 1883, as authorized by an act of the Legislature of the State of Michigan approved March 14, 1882, entitled ‘An act to provide for renewing the incorporation of ■companies organized for mining and manufacturing' purposes,'5 as amended by an act approved March 19, 1887."

No claim is made here that the laws referred to were not complied with, and it is unnecessary to state that portion of the plea which sets out the proceedings. The respondents say that their action in the premises is authorized by the laws of the State; that it was and is necessary to the care and protection of their interests as stockholders in the Pewabic Mining Company, in respect to said company and its property; and that they are not guilty of the usurpation charged in the information.

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

Related

City of Gaylord v. Gaylord City Clerk
144 N.W.2d 460 (Michigan Supreme Court, 1966)
Lakehead Pipe Line Co. v. Dehn
64 N.W.2d 903 (Michigan Supreme Court, 1954)
Wayne County Prosecuting Attorney v. Grosse Ile Bridge Co.
28 N.W.2d 123 (Michigan Supreme Court, 1947)
Drew v. Beckwith, Quinn & Co.
114 P.2d 98 (Wyoming Supreme Court, 1941)
Village of Constantine v. Michigan Gas & Electric Co.
296 N.W. 847 (Michigan Supreme Court, 1941)
Ayer v. Commissioner
37 B.T.A. 767 (Board of Tax Appeals, 1938)
Ex Parte Bass
40 S.W.2d 457 (Supreme Court of Missouri, 1931)
City of Benton Harbor v. Michigan Fuel & Light Co.
231 N.W. 52 (Michigan Supreme Court, 1930)
Steel, Wedeles Co. v. Commissioner
11 B.T.A. 279 (Board of Tax Appeals, 1928)
State ex rel. City of Shawano v. Engel
177 N.W. 33 (Wisconsin Supreme Court, 1920)
Bush v. State ex rel. Wernecke
119 N.E. 417 (Indiana Supreme Court, 1918)
Nichols v. Fox
159 N.W. 399 (South Dakota Supreme Court, 1916)
Attorney General ex rel. Union Trust Co. v. First National Bank
192 Mich. 640 (Michigan Supreme Court, 1916)
City of Lansing v. Michigan Power Co.
150 N.W. 250 (Michigan Supreme Court, 1914)
Chicago, Burlington & Quincy Railroad v. Doyle
102 N.E. 260 (Illinois Supreme Court, 1913)
Attorney General ex rel. Linnell v. Gay
162 Mich. 612 (Michigan Supreme Court, 1910)
The Boca Mill Co. v. Curry
97 P. 1117 (California Supreme Court, 1908)
Carton v. Secretary of State
115 N.W. 429 (Michigan Supreme Court, 1908)
United States Gypsum Co. v. Kent Circuit Judge
114 N.W. 666 (Michigan Supreme Court, 1908)
In re Campbell
18 Haw. 76 (Hawaii Supreme Court, 1906)

Cite This Page — Counsel Stack

Bluebook (online)
41 N.W. 426, 73 Mich. 303, 1889 Mich. LEXIS 1128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taggart-ex-rel-mason-v-perkins-mich-1889.