dividends upon said stock $ 21,000 or $ 19,740 upon the 94 shares which belonged to her deceased husband and $ 1,260 upon the 6 shares belonging to the Foundation.
47. On May 3, 1950, Abe Lincoln Mahony filed in this court Civil Action No. 1979-50 against the Foundation, Longfellow, Mt. Vernon, Mr. Highfield, Mr. Sothoron, George Morris Fay, United States Attorney, and others. The action was dismissed by the court. The defendants herein assert that the subject matter of this action is res judicata by reason of Civil Action No. 1979-50.
48. The evidence does not sustain the defendants' claim of estoppel or laches.
Conclusions of Law.
1. The court has jurisdiction of this action.
2. The National Home Library Foundation is a charitable corporation, presently existing in the District of Columbia, and the United States as parens patriae has authority to bring this action on behalf of the unknown beneficiaries of the Foundation.
3. The parties, issues, and disposition of the action in Mahony v. National Home Library Foundation, Civil Action 1979-50, were not such as to warrant application of the doctrine of res judicata to this action.
4. This action is not barred by estoppel, laches or any statute of limitations.
5. There was no breach of trust in the transfer by the Foundation in April, 1940, of 667 shares of the common stock of the Longfellow Building Corporation to Mt. Vernon Mortgage Corporation, the consideration for said transfer being adequate.
6. The trustees of the Foundation occupied a fiduciary relationship to it and its unknown beneficiaries. In negotiating the sale of 833 shares of the Longfellow stock in January, 1943, to Mt. Vernon Mortgage Corporation, said trustees failed to inform themselves of the value of the stock and failed to exercise the caution, care and skill which a man of ordinary prudence would exercise in dealing with his property. Due to their failure to perform their duties, the trustees transferred said 833 shares of stock for a shockingly inadequate consideration, and they thereby breached their trust.
7. The purchaser of the 833 shares of stock, Mt. Vernon Mortgage Corporation, had notice of the breach of trust, and took the stock with such notice.
8. The sale of 833 shares of the Longfellow stock by the Foundation to Mt. Vernon Mortgage Corporation must be set aside and said shares returned to the Foundation.
9. Mt. Vernon Mortgage Corporation must pay to the Foundation a sum equal to the amount of the dividends received by the corporation on the 833 shares less the amount paid by the corporation for the purchase of said shares.
10. Of the 100 shares of Longfellow stock transferred by the trustees of the Foundation to Mrs. Mittell, 94 shares belonged to Mr. Mittell. The remaining 6 shares belonged to the Foundation and no consideration was given for them by Mrs. Mittell.
11. The transfer of 6 shares of the Longfellow stock by the Foundation to Mrs. Mittell must be set aside and said shares returned to the Foundation.
12. Mrs. Mittell must pay to the Foundation a sum equal to the amount of the dividends received by her on the 6 shares.
13. The trustees of the Foundation have impliedly renounced their offices. It is necessary for the court to appoint successor trustees, and the court will retain jurisdiction of this action for that purpose.
Counsel for plaintiff will submit a proposed judgment in accordance herewith.