Search Supreme Court Cases
WABASH RAILWAY COMPANY V. BARCLAY, 280 U. S. 197 (1930)
U.S. Supreme Court
Wabash Railway Company v. Barclay, 280 U.S. 197 (1930)
Wabash Railway Company v. Barclay
Nos. 37 and 38
Argued December 2, 1929
Decided January 6, 1930
280 U.S. 197
When the net profits of a corporation out of which a dividend might have been declared for the preferred stock are justifiably applied by the directors to capital improvements, the claim of the stock for that year is gone, if by the terms of the articles of incorporation and the certificates the preferential dividends are not to be cumulative. The fact that there were profits in that year out of which dividends might have been (but were not) declared does not entitle such stock to a correspondingly greater preference over other stock when the profits of a later year are to be divided. P. 280 U. S. 203.
30 F.2d 260 reversed.
Certiorari, 279 U.S. 828, to review a decree of the circuit court of appeals sustaining a bill brought against the railway company and its directors by holders of preferred shares to control the apportionment of dividends as between the plaintiffs and shareholders of other classes. The district court had dismissed the bill.
Official Supreme Court caselaw is only found in the print version of the United States Reports. Justia caselaw is provided for general informational purposes only, and may not reflect current legal developments, verdicts or settlements. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or information linked to from this site. Please check official sources.