Albany Law Journal

Cover Albany Law Journal
Albany Law Journal
William S. Hein & Company
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It is true that the special act gives the board power of ooDsidering whether the com- pany is to be taken out of the class prohibited by stat- ute from exercising the right of using steam power, but they have to determine that question inde- pendently of the question whether the line Is properly constructed. I have come to the conclusion (1 think not differing from Stirling, J., in that) that the statet ment in the prospectus was that the company had at that moment the absolute power, without a...ny restric- tion, to use steam for the purpose of propelling their carriages, and that that statement was false. Then we must consider whether the defendants had reasonable ground for believing the statement to be true. What is said 7 Some of the defendants say that they knew that no consent had been given by the board of trade.
One gentleman (Mr. Moore) says that he acted on the statements of and trusted to the solicitors who seem to have prepared the prospectus. As regards the de- fendants who admit that they actually knew the facts, if the statement l>ears the construction I have put upon it, it cannot be said they did not know 'that the statement they were making was untrue.


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