New Haven Securities Co. v. Bitgood

MANTON, Circuit Judge.

The appellee, a Connecticut corporation, with an original nominal capital stock of $2,000, was organized by the Security Insurance Company of New Haven, which owns all its shares of stock, excepting directors’ qualifying shares. Its charter conferred broad powers. The main reason for its organization in 1920 was to hold capital stock of other insurance companies as assets; primarily it was organized to take over stock of the First Reinsurance Company, a Subsidiary of the Security Insurance Company. Its capital stock was increased from time to time for the purpose of…