Galbraith v. Bay Trust Co.

MOORMAN, Circuit Judge.

The American Textiles, Ine., a Delaware corporation, owns all the capital stock of the Bay City Hosiery & Underwear Company, a Maine corporation, and the Illinois Knitting Company, an Illinois corporation. The capital stock of American Textiles is divided into four classes: First preferred, second preferred, A-eommon, and B-eonimon. The B-common is the voting stock. This stock is held in almost equal parts by two groups, one of which, including the Smiths, holds a large majority of the first preferred. The members of the other group, the appellants, hold very little of…