Nathan v. Whitlock
New York Court of Chancery
This case came before the chancellor upon an appeal by the defendant from a decree of the vice chancellor of the first circuit.
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This case came before the chancellor upon an appeal by the defendant from a decree of the vice chancellor of the first circuit. The proceedings and proof showed it to be one of the innumerable cases of frauds upon creditors, and many innocent and unsuspecting stockholders of incorporated companies, in the city of New-York, committed by those who obtained the control of a great number of those institutions in 1825 and 1828. The facts in the case were substantially as follows: The Mohawk Insurance Company was incorporated on the 3d of April, 1824, with a capital of $500,000 divided into shares…
1Opinion of the Court
The Chancellor.
I entirely concur in the conclusion at which the vice chancellor arrived in this case, that the giving up of the note, and the transfer to Browm of the stock which had been hypothecated for its security, wras *159illegal and a fraud upon the creditors of the corporation. Whitlock, as a director of the corporation, who had from the beginning taken an active part in the transactions of the company, must be presumed to have known its situation ¡ and that neither Brown nor even the directors of the company7 had the right to make such an arrangement with him. It was in fact an…
2Cited by36 opinions
- Curran v. ArkansasSupreme Court of the United States · 1853
- Pauly v. State Loan & Trust Co.Supreme Court of the United States · 1897
- Stuart v. HaydenCourt of Appeals for the Eighth Circuit · 1895
- Hightower v. ThorntonSupreme Court of Georgia · 1850
- Foster v. RowMichigan Supreme Court · 1899
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