Texas Plains Building & Loan Ass'n v. Colonial Corp.

HICKMAN, Commissioner.

The defendant in error, Colonial Corporation, owns substantially all of the permanent stock of the plaintiff in error, Texas Plains Building and Loan Association, of the par value of $66,000. In 1934 the Association found itself unable to pay dividends or meet the withdrawal demands of its shareholders. Because of a nationwide depression, aggravated by a disastrous and long continued drought in the Panhandle of Texas, it had been forced to repossess and then owned much real 'estate. To meet that situation the stockholders decided to reorganize and effected such…