Steckler v. Pennroad Corp.

WELSH, District Judge.

This is a stockholders’ derivative action brought against the directors of the Penn-road Corporation. The bill of complaint charges that the directors caused the corporation to purchase and hold stock of the Boston & Maine Railroad in violation of the Statutes of New York and Massachusetts, and that a loss resulted therefrom for which an accounting is sought. The defendants moved for judgment on the pleadings, primarily on the ground that the statute of New York applies only to railroads organized and existing under the laws of that state and not to the Boston & Maine, a…