In re Cullen

ROSE, District Judge.

The question in this case is how far a serviceable nag may be ridden, or, less metaphorically, may the so-called “trust receipt,” highly useful in certain kinds of commercial transactions, and which the courts have in consequence struggled to sustain, in spite of its apparent conflict with recording laws, be upheld when the principal, if not the sole, reason for resorting to it, is to escape from those very statutes.

The Commercial Credit Company entered into an elaborate agreement with the Hupp Motor Car Corporation, which, though chartered in Virginia, has its principal…