59 N.Y.S. 1003 | N.Y. Sup. Ct. | 1899
The petitioner, the owner and holder of $15,000 in consolidated gold bonds, and of seventy-five shares of the preferred stock of the New Amsterdam Gas Company, applies for a "writ of mandamus, compelling the-company to exhibit to him, his attorneys and accountants, all its books of account, records and papers, from the time of its incorporation, and to permit them to fully examine the same, and to take extracts therefrom. The New Amsterdam Company was organized early in 1898, by the consolidation of the Equitable, the New York & East River and the New Amsterdam Companies, with a preferred stock of the par value of $10,000,000, and a common stock of $13,000,000, independently of a large bonded debt, secured by a mortgage and deed of trust. The .petitioner was a stockholder in the Equitable Company, and consented to the consolidation on the plan by which the scheme was consummated. As a bondholder, the petitioner has no claim to the inspection claimed, but as a stockholder, he may have, if he makes out a proper case. “ The writ of mandamus, however, does not issue herein as a matter of course. It is an extraordinary remedy, to be invoked only upon special occasions. The court does not grant the mandamus until it has taken into careful consideration all the facts and circumstances of the case. The condition and character of the books, the reasons for refusal by the corporation, the specific purpose of the stockholder in demanding inspection, the general reasonableness of the request, and the effect on the orderly transaction of the corporate business in case it is granted, are all considered in granting or refusing the writ. It is only granted in furtherance of essential justice.” Cook Stock. & Stockh. (3d ed.), § 514. The application is addressed to the sound discretion of the court, which is to be exercised with discrimination and care. The reasons for granting it must be clear and cogent. To hold that every person who shows himself to be a holder of stock is at liberty to demand an examination of the entire corporate books and records by accountants selected by him, when and as often as he pleases, and, if refused, to apply for a writ of mandamus to enforce such right, would be to establish a rule highly preju
Application denied.