Slater v. Gulf, Mobile & Ohio Railroad

Plaintiffs, former holders of preferred stock of the Kansas City, St. Louis and Chicago Railroad Company, instituted this action for the restitution to them of stock exchanged for other securities and cash in the course of a reorganization of said railroad and the leasing of its trackage to defendants. Defendants ’ motion to dismiss the complaint upon the ground that a dismissal of a prior complaint was res judicata of the present action was granted at Special Term.

The prior action was brought not only by plaintiffs but also by a stockholders’ committee purporting to represent a majority of…