Pennsylvania Knitting Mills v. Bayard

Opinion by

Me. Justice Kephaet,

The Pennsylvania Knitting Mills Company, a corporation of this State, called for brevity the old or Pennsylvania company, was engaged in the manufacture of knitted goods. In the latter part of 1921 it had apparently large inventories, heavy liabilities, and a small amount of current assets. Its officers, in Febru ary, 1922, organized a Delaware corporation of the same name. The purpose was to sell first preferred stock and use the money received therefrom in the Pennsylvania company’s business.

The officers and directors of both corporations were the same, with…