Secord v. Wheeler Gold Mining Co.

Citations

• 53 Wash. 620
• 102 P. 654
• 1909 Wash. LEXIS 1379

Syllabus

<p>Corporations — Receivers—Insolvency—Evidence. In an application for the appointment of a receiver, a corporation is conclusively shown to be solvent where it appears that its mines had cost $40,000 and were worth $50,000 and were producing seven tons of ore per day at a net profit of $4 per ton, and the total indebtedness of the company was about $4,000.</p> <p>Same — Receivers—Mismanaoement—Necessity—Evidence—Stjppiciency. Mismanagement of a corporation, entitling stockholders to the appointment of a receiver, is not shown by the fact that a director was allowed a salary as manager (the by-laws only prohibiting the payment of compensation to directors as such), that his traveling expenses were allowed, that for convenience the books were removed to another state where all the property was located, that a small tona fide debt to the wife of the president was not shown in all the semi-annual statements (it appearing on the books), or that stockholders inquiring at the main office were not furnished all the information desired; since absolute necessity must be shown by clear evidence, and mere carelessness, mistakes or bad policy honestly pursued is not sufficient.</p>