(Gudgment for plaintiffs)
Judgment for $11,749 with costs was awarded by Judge Milton J. Helmick in the U.S, Court for China on March 1, Zung Noh-chang. Zia Bang-fee, Tsung Yeu-tsing, Tshing Kee, Wong Chi-chung, Bong Zoong-yoong, Chow Yuen-dien, Chen Yue-tung, King Keo, doing business under the style of Vu Shing & Partners, in their action against Rudolph 'W. Mayer, for damages in the sum of $26,000 on a breach of contract.
The judgment reads as follows:
The facts of this case are so com~ plicated that the Court sees no good Purpose In attempting a detailed Feeltal. The gist of the matter is that plaintiffs, who were compradores, debenture holders, and preferred claimants of Newmitks, Ltd. in. receivership, agreed to transfer their Interests and" claims to defendant who was {o purchase the essels of the company at receiver's sale, form new British company of $100,000 capitalization, and issue to plaintiff '$26,000 worth of stock. The defend~ ant purchased the assets from the receiver at a price of $90,000, pay-Ing for the same with preferred claims which hed been assigned to him, including that of plaintiffs on which he had advanced some cash. Defendant organized a new company Known as Newmilks 1936, Ltd. with fan authorized capital of $250,000. No Issued $100,000 of stock to himself and a few shares to others to qualify them as directors. He further, procured a debenture issue of $50,000 fon all the assets of the company, to be issued to himself. From his block Of stock he offered. plaintiffs $26,000 par value, which they refused to Secept, claiming that the agreement had been breached. They then brought this action for damages in the sum of $26,000.
The Court finds the contract was reached by defendant and that plaintiffs properly refused to accept the stock offered them, A common sense construction of the agreement forces the view that it clearly contemplated a new company limited to {$100,000 capitalization, with no de-venture issues or ens on the assets, to diminish the value of the stock.
The Court believes plaintiffs measure of damages is the value of the consideration paid by them on the contract, but owing to the intricacies of the transaction it is ditficult for the Court to determine the precise amount which will make them whole. After listening to. the discussions of counsel and making some calculations of ils own, the Court arrives at the Agure of $11,- 749. Judgment in that amount, with costs, will be awarded plaintiffs against defendant.
Text read from the printed page and cleaned; old type leaves the occasional error.