upr000196 81

amount to make up i t s o r ig in a l c a p ita l, that the balance on hand would be deemed surplus or undivided p r o f it s . I t has been held proper fo r d ire c to rs o f corp oration s jv when appraisin g p ro p erty of the company fo r the purposes o f making dividen ds, to appraise the o r ig in a l investment in the p lan t at i t s cost p r ic e , a ft e r making a f a i r allowance fo r d ep re c ia tio n in value by reason of wear and te a r, and ' ot he r c au se s . Clark and M arshall on C orporation s, Sec. 520, sub. " J " . In the case o f the Land Company, in order to avoid a charge o f fraud, w d u M .it, th e r e fo r e , not be f a i r and ju s t to apjjraise the p ro p erty a t i t s o r ig in a l cost price?. ^he adoption o f th is va lu a tion as a basis fo r estim atin g the c a p it-a l , p a r tic u la r ly when such lands were s e llin g at a higher j va lu a tion in the market, would be h eld , I apprehend, to be f a i r and equ itable . I t is my conclu sion, th e r e fo r e , as to the Las Vegas Company, i f a f a i r appraisement is made o f the r e a l property now in the hands o f the c o rp o ra tio n , on the b a s is o f the cost j| p ric e to the company of such land§, and .a s u ffic ie n t sum s e t I apart in a d d itio n th ereto to make up the o r ig in a l paid-up j c a p ita l o f the compan3r, and an allowance made fo r debts, e t c , on the ordin ary bases used in determ ining the p r o f it s of a company, (7 )