Amussen v. Quaker City Corp.

The Chancellor:

The important question in this case is presented by the general ground of demurrer assigned ore tenus. That question is—may the diréctors of an insolvent corporation which has either ceased to do business or contemplates a cessation of business, prefer certain of its unsecured creditors over others, the favored creditors not including among their number any of the officers, directors or stockholders?

The authorities which deal with the general subject which this question touches are far from harmonious in their views. The conflict among them arises out of the difference of…