Ainsworth v. Southwestern Drug Corporation

FOSTER, Circuit Judge.

This is an appeal from a judgment sustaining a motion to dismiss a bill in equity. From the verified bill and annexed exhibits the following facts appear:

Southwestern Drug Corporation was organized under the laws of Texas, July 25, 1929, to effect a. consolidation of six concerns dealing in drugs and druggists’ sundries, with headquarters in Dallas and branches in other Texas cities. The charter provided for an authorized capital stock of 250,000 shares of no par value, divided into 50,000 shares of preferred stock entitled to an annual cumulative dividend of $7 per…