Alabama Consol. Coal & Iron Co. v. Baltimore Trust Co.

Citations

• 197 F. 347
• 1912 U.S. Dist. LEXIS 1425

Syllabus

<p>1. Corporations (§ (¡8*) — Preferred Stock — Conversion into Bonds — Statutes.</p> <p>P. L. (N. J.) 1902, p. 217, prescribing the form in which New Jersey corporations may convert preferred stock into bonds, was applicable to all subsequent conversions of that character.</p> <p>[Ed. Note. — For other cases, see Corporations, Cent. Dig. §§ 181, 183, 449; Dec. Dig. § 68.*]</p> <p>2. Corporations (§ 152*) — Dividends—Payment—Borrowing Money.</p> <p>Evidence that some of the money actually paid to stockholders by a corporation as dividends was borrowed for that purpose did not show that the dividend declared and paid had not been earned.</p> <p>LEd. Note. — For other cases, see Corporations, Cent. Dig. §§ 564-567; Dec. Dig. § 152.*]</p> <p>3. Corporations (§ 68*) — Preferred Stock — Exchange for Bonds — Meetings of Stockholders.</p> <p>Where at certain meetings of stockholders of a corporation all that was done with reference to a proposed conversion of preferred stock into bonds was to vote that some of the stock which the stockholders originally intended to redeem should not be converted, and all of the exchanges which were ever made wore consummated some months before such meetings were held, it could not be said that the exchange was illegal because authorized at such meetings, and that at that time the corporation’s floating debt was such that the exchange could not be legally made.</p> <p>[Ed. Note. — For other cases, see Corporations, Cent Dig. §§ 181-183, 449; Dec. Dig. § 68.*]</p> <p>4. Corporations (§ 68*) — Preferred Stock — Change into Bonds.</p> <p>Where the affidavit of the treasurer and auditor of a corporation, stated that the time a vote was taken authorizing the conversion of certain preferred stock into bonds, the company's floating indebtedness exceeded 10 per cent, of its outstanding capital stock, so that pursuant; to P. L. (N. J.) 1902, p. 217, the conversion could not be authorized, lrat it appeared that if the auditor had not included an item