Johnston v. Ms. Pac. R.R. Co., Thompson, Trustee

Two questions are presented: (1) Is the bond of a'corporation engaged in manufacturing wood products void for want of consideration, such bond having been executed to guarantee the railroad company against loss by reason of the corporation’s failure to ■fully perform under a contract whereby the shipper was billed at reduced rates on inbound rough materials upon its agreement to utilize the carrier in transporting finished products ! (2) Did bankruptcy of the corporation and its consequent inability to ship in refined form relieve sureties on the bond!

The carrier’s suit was hoard on an agreed…