Consolidated Tank Line Co. v. Kansas City Varnish Co.
U.S. Circuit Court for the District of Western Missouri
In Equity. This is a creditors’ bill on tho part of the complainants and other creditors who may come in to sot aside a deed of trust made by the Kansas City Varnish Company, a business corporation, preferring as creditors the German National Bank for $16,255, Harkuoss, Wyman & Russell, bankers, for 85,500, and tho Kaw Valley Paint & Lead Company for $974.50. Tho deed of trust was executed August 25,1890. The caso, on preliminary hearing for writ of injunction and tho…
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In Equity. This is a creditors’ bill on tho part of the complainants and other creditors who may come in to sot aside a deed of trust made by the Kansas City Varnish Company, a business corporation, preferring as creditors the German National Bank for $16,255, Harkuoss, Wyman & Russell, bankers, for 85,500, and tho Kaw Valley Paint & Lead Company for $974.50. Tho deed of trust was executed August 25,1890. The caso, on preliminary hearing for writ of injunction and tho appointment of a receiver, is reported in 48 Fed. Rep. 204. It has now been hoard on the pleadings and full evidence. Tho…
1Opinion of the CourtPhilips, J.
Tho question to be decided is as to the right, of an insolvent business corporation to make a deed of trust for the benefit of certain of its creditors, to which debts the directors sustain the relation of indorsers, and especially whether tho directors may thus prefer them*8selves when they know, or should know, that the corporation is insolvent, and the effect of the deed is to suspend the functions of the directors in the management of the entire assets, by turning them over to a trustee to dispose of summarily, when the fact is that the assets are barely sufficient to pay off the preferred…
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- Sawyer v. HoagSupreme Court of the United States · 1873
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- Hatch v. DanaSupreme Court of the United States · 1880
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