Rogers v. Hill

The American Tobacco Company is a corporation organized under the laws of New Jersey. The petitioner, plaintiff below, acquired in 1916 and has since been the owner of 200 shares of its c'ommon stock. He also has 400 shares of common stock B. In accordance with bylaw XII, 1 adopted by the stockholders at their annual meeting, March 13, 1912, the company for many years has annually paid its president and vice-president large amounts in addition to their fixed salaries ahd other sums allowed them as compensation for services. 2

Plaintiff maintains that the by-law is invalid and that, even if…