Larrabee v. Franklin Bank
Supreme Court of Missouri
Appeal from St. Louis City Circuit Court.—Hon. J. E. Withrow, Judge. (1) It is a well settled rule in this state that a preference of a bona fide creditor by an insolvent debtor is lawful and valid, and a corporation debtor has hitherto not been excepted from this rule.
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Appeal from St. Louis City Circuit Court.—Hon. J. E. Withrow, Judge. (1) It is a well settled rule in this state that a preference of a bona fide creditor by an insolvent debtor is lawful and valid, and a corporation debtor has hitherto not been excepted from this rule. Foster v. Planing Mill, 93 Mo. 79; Shelly v. Boothe, 73 Mo. 74; Dougherty v. Cooper, 77 Mo. 528. (2) The recent theory that an insolvent corporation which contemplates an abandonment of its business cannot lawfully prefer a bona fide creditor is not based upon sound reasoning and should, if at all deemed an advisable…
1Opinion of the Court
Buegess J.
This is a suit in equity in the nature of a creditor’s bill by three creditors of the Kendail-*596Boyce Cracker Company, joined as plaintiffs, against tho Franklin bank, the Kendall-Bayle Cracker Company, its officers and directors-, and P. R. Flitcraft, as assignee of the Kendall-Bayle Cracker Company, for the benefit of its creditors. The defense consists mainly in a denial of the allegations and charges of the bill.
The Kendall-Bayle Cracker Company was a corporation engaged in the manufacture and sale of crackers in the city of St. Louis. The stock of the company was full paid, and…
2Cases cited15 opinions
- Union Bank of Chicago v. Kansas City BankSupreme Court of the United States · 1890
- Preston v. SpauldingIllinois Supreme Court · 1887
- Wakeman v. GroverNew York Court of Chancery · 1832
- White v. CotzhausenSupreme Court of the United States · 1889
- Shelley v. BootheSupreme Court of Missouri · 1880
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3Cited by6 opinions
- Waggoner-Gates Milling Co. v. Ziegler-Zaiss Commission Co.Supreme Court of Missouri · 1895
- Jaffrey v. MathewsSupreme Court of Missouri · 1894
- Meyer v. American Folding Chair Co.Supreme Court of Missouri · 1895
- Calihan v. PowersSupreme Court of Missouri · 1896
- Splint v. SullivanMissouri Court of Appeals · 1894
1 more not listed; retrieve them via the Exa API.