Frank v. American Commercial Alcohol Corp.

This is a derivative action instituted by the plaintiff, a minority stockholder of the American Commercial Alcohol Corporation, to compel the individual defendants to account for fraud practiced upon the corporation and its stockholders.

A gist of the charges is that these individuals, who are the controlling officials and directors of the corporation, in April, 1933, formulated a plan whereby, in view of the anticipated repeal of the Eighteenth Amendment, they would form a pool in the common stock of the alcohol corporation on the New York Stock Exchange for the purpose of artificially…