Willapa Pulp & Paper Mills v. American Employers' Insurance

Blake, J.—

Plaintiff brought this action to recover the principal sum (twenty-five thousand dollars each) of two fidelity bonds, written by defendant, guaranteeing plaintiff against loss through the chicanery and thievery of its president and secretary. From a judgment dismissing the action, plaintiff appeals.

This is a somewhat involved, but very interesting, story of the looting of a perfectly solvent corporation by the holding company-interlocking directorate method.

Appellant is an Oregon corporation, organized in 1927 for the purpose of building and operating a wood pulp plant at South…