Burkhart v. Smith

Charles L. Burkart, trustee in bankruptcy of the Chesapeake Waste Paper Company, filed a bill in equity charging James E. Smith, owner of eighty per cent, of the stock, director and president of the company, with having fraudulently and negligently wasted its assets by deliveries made and indulgences granted to a Marley Paper Manufacturing Company, of which Smith was likewise the chief stockholder, owning ninety per cent, of the stock, a director and its presi dent.' And it was prayed that he might be required to repay the resulting losses, for the benefit of the creditors of the Chesapeake…