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Corporations Keyed to Hazen
A. P. Smith MFG. Co. v. Barlow
Citation:
346 U.S. 861 (1953)Facts
The A.P. Smith Manufacturing Company was incorporated in 1896. Over the years the company has contributed regularly to the local community chest and on occasions to Upsala college in East Orange and Newark University, now part of Rutgers, the State University. On July 24, 1951, the board of directors adopted a resolution which set forth that it was in the corporation’s best interests to join with others in the 1951 Annual Giving to Princeton University, and appropriated the sum of $1,500 to be transferred by the corporation’s treasurer to the university as a contribution towards its maintenance. When this action was questioned by stockholders, the corporation instituted a declaratory judgment action. Mr. Hubert F. O’Brien, the president of the company, testified that he considered the contribution to a sound investment, that the public expects corporations to aid philanthropic and benevolent institutions. Mr. Irving S. Olds, former chairman of the board of the United States Steel Corporation, pointed out that corporations have a self-interest in the maintenance of liberal education as the bulwark of good government.
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2m 27s