Christianssand v. Federal Steamship Corp.

Complaint alleges consummation of a scheme by which all assets of Federal Steamship Corporation were illegally divided among the individual defendants, intent to continue the business and continuance without disclosure of such conduct to plaintiff, who has recovered judgment for breach of a contract *628thereafter made. This scheme gave a cause of action to creditors whose claims existed at the time of the depletion of the capital. Selson Engineering Co., Ltd., v. Federal Steamship Corp., N. Y. L. J. June 26, 1923.

The sole question raised by this motion to dismiss the complaint is whether a…