Grommes v. Sullivan
Court of Appeals for the Seventh Circuit
Appeal from the Circuit Court of the United States for the Northern District of Illinois. This appeal is from a decree dismissing the intervening petition of the appellants, John B. Grommes and Michael Ullrich, in the case of Towle v. Investment Soc., 78 Fed. 688, wherein William K. Sullivan had been appointed receiver of the assets of the society. The case was submitted and hoard upon the petition, answer, and a stipulation of the parties.
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Appeal from the Circuit Court of the United States for the Northern District of Illinois. This appeal is from a decree dismissing the intervening petition of the appellants, John B. Grommes and Michael Ullrich, in the case of Towle v. Investment Soc., 78 Fed. 688, wherein William K. Sullivan had been appointed receiver of the assets of the society. The case was submitted and hoard upon the petition, answer, and a stipulation of the parties. The substance of the petition is that George F. Montgomery, being indebted to the appellants in the sum of 81,608.47, on October 5, 1893, executed to them…
1Opinion of the CourtWoods, Circuit Judge
We are of opinion that, under the law of its creation, the American Building, Loan & Investment Society had power to execute negotiable paper. The rule is well established that corporations authorized to. do a particular business, unless especially denied the power, have implied authority to contract debts in the legitimate transactions of the business authorized; and the right to contract debt, it is the equally well settled American rule, carries with it the power to give negotiable notes or bills in payment or security for the debts, unless that power is expressly denied. Rees, Ultra…
2Cases cited13 opinions
- Swift v. TysonSupreme Court of the United States · 1842
- Railway Co. v. McCarthySupreme Court of the United States · 1878
- Gelpcke v. DubuqueSupreme Court of the United States · 1864
- Railroad Co. v. National BankSupreme Court of the United States · 1880
- Bissell v. Michigan Southern & Northern Indiana Railroad CompaniesNew York Court of Appeals · 1860
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3Cited by7 opinions
- Helena National Bank v. Rocky Mountain Telegraph Co.Montana Supreme Court · 1898
- Taylor Feed Pen Co. v. Taylor Nat. BankCourt of Appeals of Texas · 1915
- Grant County State Bank v. Northwestern Land Co.North Dakota Supreme Court · 1914
- Bohn v. Boone Building & Loan Ass'nSupreme Court of Iowa · 1907
- Central Building, Loan & Savings Co. v. BowlandDistrict Court, S.D. Ohio · 1914
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