Welch v. Atlantic Gulf & West Indies Steamship Lines

Judgment is affirmed on the opinion below, D.C., 101 F.Supp. 257. The appellant’s effort to distinguish Guttmann v. Illinois Central R. Co., 2 Cir., 189 F.2d 927, cer-tiorari denied 342 U.S. 867, 72 S.Ct. 107 cannot prevail. The sentence upon which counsel relies for the attempted distinction is a restriction upon the payment of dividends on the common stock; it docs not impose an obligation to pay passed dividends on the non-cumulative preferred. That this is the correct interpretation is confirmed by the provision giving the corporation the option to purchase preferred stock at par, as well…