Wittenberg v. Federal Mining & Smelting Co.

The Chancellor.

This case presents the question of whether the defendant may against the protest of preferred stockholders, the preferences of whose stock are such as the statement of facts shows, declare dividends on its common stock when, by reason principally of the depletion of ore bodies, the capital assets are impaired to the extent of about seven million dollars. In another form the question is, whether, there being a ¿Efficiency of net as*151sets below its paid in or invested capital, the directors may in the process of calculating the net profits of the defendant mining corporation for…