Clipped from US, New York, New York, New York Times , April 4, 1914
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| Court Holds Company Must Relm- | burse Objecting Stockholder.Supreme Court Justice Donnelly filed a decision yesterday restraining theWabash Railroad Company from ex-j changing any more debenture mortgage 1 bonds of the Wabash* for new issues of| preferred stock, common stock, and re-! funding bonds. Justice Donnelly di- I : reeted also tiiat the rail raid should pay I to James Pollitz, the plaintiff in thei injunction suit, the $111,000 which ho in-! vested in the Wabash stocn, with Interest from the date of the investment ! in 190C.Mr. Poilitz began his suit In 1900.i naming the Wabash, the Dquitahlo 1 Trust Company, and others as defendants. A new issue of securities was authorized in July 1900. the issue, to con-I sist of $i30i,(HK.00lt;» worth of fifty-vear 4 per cent, gold refunding bonds, $10.-.vto,lt;wi worth of preferred stock, and $kl.390,000 worth of common stock. It wfas planned to exchange $30,090,000 I worth of debenture mortgage bonds for] these new issues.; “ J have found,” said Justice Donnel-! ly, ” as matters of fact that although the act complained of was technically illegal the Directors in initiating, authorizing, and consummating the planof exchange were acting in good faith and with reasonable care and diligence; and that tli© company sustained no pe- i ctmiary loss by saicr plan of exchange ! | except so far as it is liable to compel the Directors to account to it for the benefit of such stockholders as do not acquiesce in such plan of exchange, The p an being nd,Indicated illegal and ultrav iit j the .'ortMtralhui, rind | hem being noratificatiim for an iHegui or ultra viresact possible, the plaintiff as well as other stockholders have a right lo refuse to be bound by it, and are entitled to be relieved of its operation to the extent of their holdings notwithstanding , that the corporation sustained no pe-i cuniarv loss.”*|--
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