Cotton Mills v. . Cotton Mills
Supreme Court of North Carolina
Civil action, tried before Battle, J., at Spring Term, 1894, of Randolph Superior Court, upon exceptions to the report of P. D. Walker, referee. From the judgment of his Honor upon divers exceptions to the report, both the plaintiff and defendants appealed. The facts necessary to an understanding of the opinion, in each appeal, are sufficiently stated therein.
1Opinion of the Court
PLAINTIFF'S APPEAL. There is abundant authority, both in reason and decisions, for the proposition stated by the late Chief Justice Merrimon in Clayton v. OreKnob Co., 109 N.C. 385: "Very certainly the capital stock, paid or unpaid, of the defendant constitutes a trust fund for the benefit of its creditors, and whatever may be the rights of the stockholders as among themselves, the creditors have the right to have such fund collected and applied to the discharge of their debts. If the capital stock has not been paid for, it is the plain duty of the court to require it to be collected, or so…
2Cases cited4 opinions
- Sawyer v. HoagSupreme Court of the United States · 1873
- Curran v. ArkansasSupreme Court of the United States · 1853
- Hodges & Wilson v. Silver Hill Mining Co.Oregon Supreme Court · 1881
- Hauser v. . TateSupreme Court of North Carolina · 1881
3Cited by12 opinions
- Belvin v. Raleigh Paper Co.Supreme Court of North Carolina · 1898
- Smathers v. Bank.Supreme Court of North Carolina · 1904
- National Surety Corp. v. SharpeSupreme Court of North Carolina · 1952
- Dunavant v. Caldwell & Northern RailroadSupreme Court of North Carolina · 1898
- Williamson v. . BittingSupreme Court of North Carolina · 1912
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