Hogsett v. Ætna Building & Loan Ass'n
Supreme Court of Kansas
Error from Shawnee district court; Alston W. Dana, judge. statement. The ¿Etna National Loan Company was incorporated in, 1891, under section 1426 of the General Statutes of 1889, for the purpose of accumulating and loaning funds, the erection of buildings and the purchase and sale of real estate for the mutual benefit of its members.
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Error from Shawnee district court; Alston W. Dana, judge. statement. The ¿Etna National Loan Company was incorporated in, 1891, under section 1426 of the General Statutes of 1889, for the purpose of accumulating and loaning funds, the erection of buildings and the purchase and sale of real estate for the mutual benefit of its members. With the exception of a change in name and in the amount of capital stock it continued to do business on the original plan until the year 1899, when it was reorganized under the law then in force. Under its original charter and by-laws it issued two kinds of…
1Opinion of the Court
The opinion of the court was delivered by
Benson, J.:
A corporation is clothed with the powers given by its charter. (A. T. & S. F. Rld. Co. v. Fletcher, 35 Kan. 236, 10 Pac. 596.) The issuance of preferred stock, in the absence of statutory prohibition, violates no rule of public policy. (1 Cook, Stock & Stock., 3d ed., § 268.) It is urged, however, that such *76preference can only be in earnings, and can never be made up out of capital. It is conceded that there may be a preference in the distribution of capital when such distribution is proper, but that capital can not be applied to the payment…
2Cases cited6 opinions
- Vought v. Eastern Building & Loan Ass'nNew York Court of Appeals · 1902
- Leahy v. National Building & Loan Ass'nWisconsin Supreme Court · 1898
- Atchison, Topeka & Santa Fé Railroad v. FletcherSupreme Court of Kansas · 1886
- Wilson v. ParvinCourt of Appeals for the Sixth Circuit · 1903
- Sumrall v. Commercial Building Trust's AssigneeCourt of Appeals of Kentucky · 1899
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Stumph v. Wheat Belt Building & Loan Ass'nSupreme Court of Kansas · 1938
- Fisher v. Intermountain Building & Loan Ass'nIdaho Supreme Court · 1935