A cattle company, authorized by its charter to deal only in live stock, was in possession of three tracts of land. Upon a decision of the stockholders and directors to dissolve, two of these tracts were sold outright. The third, being near a large city, was subdivided into city lots with streets, sidewalks, water, lights, etc., for the purpose of a more advantageous sale. This involved the expenditure of considerable sums of money, and at the end of four years some of the lots were still unsold. The corporation became insolvent and the receiver refused to pay the money borrowed to carry on this venture, insisting that the expenditure was ultra vires the corporation. Held, inasmuch as the corporation was entitled to acquire land for the purpose of carrying on its live stock business, it was entitled to dispose of it to the best possible advantage and therefore the debts were properly chargeable against the corporation. Austin v. Osborne (C. C. A. 5th, 1931) 46 F.(2d) 956.