National Supply Co. v. Leland Stanford Junior University

HEALY, Circuit Judge.

Stanford University owned 1300 shares of 7% cumulative preferred stock of the National Supply Company of Delaware, referred to in the briefs as the “Delaware Corporation.” The latter had 1248 preferred stockholders and 1890 common stockholders. In 1937 it was in arrears in the payment of dividends on its preferred stock to the extent of $35 per share. It owned practically all the common stock— 99% plus — of a Pennsylvania corporation, which in this opinion will be called “Spang.” The Delaware Corporation was engaged in the manufacture and sale of machinery and supplies to…