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NATIONAL SUPPLY CO. v. LELAND STANFORD JR. UNIVERSITY

No. 10270.

134 F.2d 689 (1943)

NATIONAL SUPPLY CO. v. LELAND STANFORD JUNIOR UNIVERSITY et al.

Circuit Court of Appeals, Ninth Circuit.

Rehearing Denied May 22, 1943.

Attorney(s) appearing for the Case

Donald Y. Lamont, Stephen R. Duhring, and Chickering & Gregory, all of San Francisco, Cal. (Sullivan & Cromwell, of New York City, of counsel), for appellant.

J. M. Mannon, Jr., Henry D. Costigan, and Morris M. Doyle, all of San Francisco, Cal. (McCutchen, Olney, Mannon & Greene, of San Francisco, Cal., of counsel), for appellee.

John F. Davis, Sol., Securities and Exchange Commission, Milton V. Freeman, Asst. Sol. and Louis Loss and Arnold R. Ginsburg, Attys. S. E. C., all of Philadelphia, Pa., for Securities & Exchange Commission, amicus curiae.

Before GARRECHT, HANEY, and HEALY, Circuit Judges.

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...

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