Court Opinion

ID: 9456195
Source: CourtListenerOpinion
Date Created: 2023-08-04 19:45:14.134053+00
Date Added: 2024-06-11T17:34:53.130549
License: Public Domain

ON PETITION FOR REHEARING
PER CURIAM:
Upon consideration of the petition for rehearing filed in the above-entitled and numbered cause it is ordered that the paragraph beginning on p. 1102 is withdrawn and the following language is substituted therefor:
It is of further significance that Mrs. Emma Baur, who made the initial $200,000 open account loan to THC, was careful to distribute this obligation to the THC stockholders so that each shareholder’s pro-rata purported debt holdings continued to match his pro-rata stock holdings. Also, Emma Baur entered into an agreement with the holders of the notes whereby the holders agreed not to institute legal proceedings for non-payment on the $200,000 she advanced on open account unless such action was agreed upon by the holder of a majority in interest of the total open account. Even though Mrs. Baur maintained a majority in interest of the open account until January 19,1961, and there was not a unity of the stockholders and those purporting to hold debt interests until Mrs. Baur completed her gift-giving program, this agreement effectively placed the control over any foreclosure for non-payment in the hands of Mrs. *1104Baur, the wife of the founder of TBC, and ultimately in the stockholders. We think that these arrangements to prevent the collection on the open account by an individual holder, in the overall context, give the advances a shading more akin to equitable interests in the hands of the stockholders.
Neither this substitution nor any other matter raised in the petition for rehearing alters the original decision reached by the Court.
The petition for rehearing is accordingly denied.