Cohn v. Cities Service Co.

On October 10,1929, the defendant, a Delaware company, made to those common shareholders who should be of record on its books on November 7th, an offer of the “right” to subscribe on or before November 30th for one share of new stock for every 10 shares held by them, at $45 a share; the usual “warrants” to be issued on November 7th. The defendant had issued a series of debenture bonds, to each of which was attached a “purchase warrant,” authorizing the holder upon 30 days’ notice to subscribe for 40 shares of common stock at $31.50 each. By advertisement in the press it advised the holders of…