People v. Bachman

THOMPSON (IRA F.), J.

The defendant was charged by information with the crime of violating the Corporate Securities Act in the following respect: That he did, on November 15, 192G, sell tó and take a subscription of J. P. Kemmerer for 10,000 shares of the Bonanza King Extension Mines Company for the sum of $1,000 without first having

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applied and secured from the corporation commissioner a permit authorizing the sale of such stock. There was another count, but the defendant was not tried for the offense therein contained. The jury returned a verdict of guilty and this appeal is from the judgment and order denying defendant’s motion for a new trial.

But one point is urged as a reason for reversal, to wit: The insufficiency of the evidence to sustain the verdict. Appellant’s counsel recognize the rule that it is not the function of the appellate tribunal to weigh testimony, but they insist that in the instant cause there is a failure to show that the stock which was the subject of the sale was not the personal stock of the appellant, or, to reframe it, that there is no showing that the subscription was for treasury stock. It is not disputed that the subscription was in fact taken and $1,000 paid by Kemmerer, nor is it denied that there was never at any time a permit. The only question concerns the ownership of the stock which was the subject of the sale. The subscription was taken, $500 was paid and a receipt was executed in the following words:

: “Bonanza King Consolidated Mines and Reduction Works Fenner, California. O. B. Bachman, President and Treasurer. Wade Hampton Williams Vice-President; A. E. Kinney, Secretary, Secretary’s office, Las Vegas, Nevada. All agreements are contingent upon strikes, accidents and other delays unavoidable or beyond our control and subject to declaration of trust recorded March 10, 1923 in Clark County, Nevada.

“Trustee receipt Bonanza King Extension Mines Company.

“This certifies that J. P. Kemmerer has paid the sum of one thousand dollars, $500.00 cash and 90 day note for $500.00 for ten thousand shares of the Bonanza King Extension Mines Company, Organizing.

“This subscription is accepted by the Trustee upon the understanding and agreement that this receipt shall be exchanged for an interim Certificate representing . . . shares, upon- the completion of the Corporation under the laws of the State of Nevada.