Guaranty Trust Co. v. Salt's Textile Mfg. Co.

L. HAND, Circuit Judge.

This is an appeal from a decree passing the accounts of William T. Smith, as receiver of the defendant, over the objections of two creditors, the Commercial Factors Corporation and the Veeanday Corporation. The defendant was a very large manufacturer of “pile fabrics”, and had been in business since 1890; it had been losing money for several years before 1926 and on April twenty-second of that year with the consent of all its creditors, though against the advice of the judge, Smith was appointed its receiver under the familiar sequestration bill in equity. He has…