People v. Claggett

HOUSER, J.

From a judgment of conviction of the criminal offense known as “the violation of the Corporate Securities Act” (Stats. 1917, p. 673, as variously amended), and from an order by which his motion for a new trial was denied, defendant has appealed to this court. He has also given notice of an appeal from an order “denying his motion in arrest of judgment”.

[143]

As far as is here material, it appears that defendant was a lessee of certain gold placer mines, and that in consideration of a certain sum of money by each of several different persons paid to defendant, by ah instrument in writing signed by defendant, he agreed that the person who paid such sum of money was “to have one-twentieth interest in all of the gold and other values recovered from said claim after operating expenses have been paid”; also, “in connection with the other copartners”, defendant agreed “to incorporate the above mentioned copartnership at any time suitable to all of the parties concerned, and at that time party of the second part shall receive 1/20th of the stock in the company to he formed”.

As set forth in the information herein, the particulars of the charge against defendant were that, without the consent of the corporation commissioner of this state, defendant sold “a security . . . evidencing and representing an interest in a gold mining enterprise, and the right to share in the profits of a mining lease. ...”

It is contended by appellant that the instrument issued by him was not a “security”. But by the language of subdivision 7 of section 2 of the act, and by the decisions in various adjudicated cases, a contrary conclusion is indicated. (See

State

v.

Gopher Tire & Rubber Co.,

146 Minn. 52 [177 N. W. 937];

State

v.

Evans,

154 Minn. 95 [191 N. W. 425, 27 A. L. R. 1165];

People