C. R. Remington & Son v. Central Press Ass'n
Court of Common Pleas of Ohio, Franklin County, Civil Division
Statement. July 14th, 1894, The Central Press Association Company, a corporation, executed a cognovit note to the Remington Paper Company for 817,168.92, and at the same time, to secure its payment, executed a chattel mortgage, the mortgage covering substantialiy all the property owned by it. It was then a “going concern.” Its debts were then equal to, or greater than, its assets.
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Statement. July 14th, 1894, The Central Press Association Company, a corporation, executed a cognovit note to the Remington Paper Company for 817,168.92, and at the same time, to secure its payment, executed a chattel mortgage, the mortgage covering substantialiy all the property owned by it. It was then a “going concern.” Its debts were then equal to, or greater than, its assets. Weeks, the agent of the Remington Paper Company, who procured the cognovit and mortgage, then knew the financial condition of the Press Association. He also knew that Parsons & Co., creditors of the Press…
1Opinion of the Court
5 Thompson Corporation Sec. 5 497.
In the Bouse case (46 Ohio St., 493,) the Supreme Court did not apply this doctrine in full,but limited its application to a case, where the corporation had become insolvent, and had ceased to prosecute the objects for which it had been created,having, by mortgage', preferred some of its creditors whose antecedent debts were secured by mortgages.
The expression of an opinion on the question, whether a corporation, which was a “going concern,” and was, in good faith, prosecuting its business, could “borrow money, or contract, or procure an extension of other…
2Cases cited5 opinions
- Tiemeyer v. . TurnquistNew York Court of Appeals · 1881
- In re GeorgeDistrict Court, D. Massachusetts · 1869
- Suydam v. Columbus InsuranceOhio Supreme Court · 1849
- Whipple v. BondMassachusetts Supreme Judicial Court · 1895
- Warner v. LakeNew York Supreme Court · 1891
3Cited by1 opinion
- Delia v. CommissionerUnited States Tax Court · 1964