Boston Safe Deposit & Trust Co. v. Adams
Massachusetts Supreme Judicial Court
Bill in equity, filed in the Probate Court for the County of Suffolk on July 29, 1913, by the executor of the will of Charles H. Adams, late of Boston, for instructions as to the disposition of the proceeds of two notes dated November 30, 1912, for $10,000 each, which were issued to the plaintiff by the Lawrenceburg Roller Mills Company, a corporation organized under the laws of the State of Indiana, as the holder of two hundred shares of the preferred capital stock of that…
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Bill in equity, filed in the Probate Court for the County of Suffolk on July 29, 1913, by the executor of the will of Charles H. Adams, late of Boston, for instructions as to the disposition of the proceeds of two notes dated November 30, 1912, for $10,000 each, which were issued to the plaintiff by the Lawrenceburg Roller Mills Company, a corporation organized under the laws of the State of Indiana, as the holder of two hundred shares of the preferred capital stock of that corporation, such notes having been authorized to be issued in payment of all arrears of dividends on preferred stock up…
1Opinion of the CourtSheldon, J.
This dividend has been declared and paid, and neither the corporation nor any of its shareholders have raised or sought to raise any question as to its validity. That is not in dispute. And it must be treated as a dividend declared and payable in cash and not as a stock dividend. It was simply for the *177convenience of the corporation that payment was to be made in its notes rather than in actual money. It was declared and paid out of the accumulated surplus of net profits, or undivided earnings; its effect was to diminish the net property of the corporation by exactly the amount of the dividend…
2Cases cited11 opinions
- Gibbons v. MahonSupreme Court of the United States · 1890
- Minot v. PaineMassachusetts Supreme Judicial Court · 1868
- Warren v. KingSupreme Court of the United States · 1883
- Field v. Lamson & Goodnow Manufacturing Co.Massachusetts Supreme Judicial Court · 1894
- Gray v. HemenwayMassachusetts Supreme Judicial Court · 1912
6 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Nirdlinger's EstateSupreme Court of Pennsylvania · 1927
- Kennedy Bros. v. BirdMassachusetts Supreme Judicial Court · 1934
- Hurley v. Boston Railroad Holding Co.Massachusetts Supreme Judicial Court · 1944
- New England Trust Co. v. SpauldingMassachusetts Supreme Judicial Court · 1941
- In re Heaton's EstateSupreme Court of Vermont · 1915
18 more not listed; retrieve them via the Exa API.