Snediker

This is an action brought by the plaintiff to recover his interest in a certain mine known as “The Eagle Bird.” It is alleged and found that one of the defendants, the Eagle Bird Mining Company (a corporation), and its trustees and agents, Ayers and Underwood, in working and developing said Eagle Bird mine, became legally indebted, and that two of the other defendants, Raeder and Powell, who were directors thereof, bought up the outstanding claims against the corporation, and bringing suit thereon obtained judgment and sold out the mine and the other property of the corporation under execution, and became the purchasers thereof at said sale.

The plaintiff’s contention is, that this judgment and sale were fraudulent and void and should be canceled. The judgment was for the defendants, and the appeal is by the plaintiff from said judgment.

The question presented for decision is, Could the directors of the corporation legally purchase with their own funds claims against their corporation and enforce payment thereof by suit and execution sale, purchasing the property themselves at said sale?

It is found as follows: “Neither Ayers, Raeder nor Powell have been guilty of any fraud or…