Jurisdiction to Appoint Guardians of the Person
Columbia Law Review
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... out Early Journal Content at http://about.jstor.org/participate--jstor/individuals/early-journal--content. JSTOR is a digital library of academic journals, books, and primary source objects. JSTOR helps people discover, use, and build upon a wide range of content through a powerful research and teaching platform, and preserves this content for future generations. JSTOR is part of ITHAKA, a not--for--profit organization that also includes Ithaka S+R and Portico. For more information about JSTOR, please contact firstname.lastname@example.org. COLUMBIA LAW REVIEW. COLUMBIA LAW REVIEW. capital for the new corporation. It was held that the creation of treasury stock under the circumstances was not a legitimate corporate purpose. From the nature of the transaction the return of the stock could not be upheld as a gift, although it is recognized that gifts and bequests are valid methods by which a corporation may acquire its own stock. Riv . Nav. Co. v. Dawsons (Va. 1843) 3 Gratt I9; Cook, Stock ? 42, note. The decision exposes a not uncommon method of corporate organization in recent years and properly stamps it as illegitimate, Oiling et al. v. Wen?el et al. (1890) I33 ll. 264, although in a similar case the transaction was apparently not so accurately penetrated and characterized by the court. Lake Superior Iron Co. v. Drexel (1882) 90 N. Y. 87. In each case where the right of acquiring its own stock is involved the circumstances and purposes of the corporation must be examined. If the courts can find a legitimate corporate purpose that is advanced without injury to creditors, they do not hesitate to uphold the transaction. Whitaker v. Grummond (1888) 68 Mich. 249 and cases supra. But cf.