Stout v. Yaeger Milling Co.
U.S. Circuit Court for the District of Eastern Missouri
In Equity. Creditors’ bill. The Yaeger Milling Company, of St. Louis, was on the seventeenth day of August, 1880, and for several years prior to that date had been, a corporation engaged in the manufacture of flour, and owned a large mill and wheat warehouse, with elevator machinery, for the prosecution of its business. Both building and the machinery therein were unincumbered. On August 11, 1880, the company’s mill and warehouse were both destroyed by fire.
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In Equity. Creditors’ bill. The Yaeger Milling Company, of St. Louis, was on the seventeenth day of August, 1880, and for several years prior to that date had been, a corporation engaged in the manufacture of flour, and owned a large mill and wheat warehouse, with elevator machinery, for the prosecution of its business. Both building and the machinery therein were unincumbered. On August 11, 1880, the company’s mill and warehouse were both destroyed by fire. Several years prior to the fire, and while the company was solvent, it had placed a number of policies of insurance upon its mill,…
1Opinion of the Court
Treat, D. J.
The theory of the bill, as stated by plaintiffs’ solicitors, is correct, viz.: That the assets of an insolvent corporation are a trust fund for the benefit of all the creditors, to the extent, at'least, that the directors, while it is under their management, cannot appropriate the assets thereof to the payment of demands due to themselves individually, to the exclusion of other creditors and by way of preference to themselves. Starting with that proposition, the next inquiry is concerning securities pledged prior to insolvency to secure the individual demands of directors and…
2Cases cited1 opinion
- Casey v. CavarocSupreme Court of the United States · 1878
3Cited by7 opinions
- Sutton Manuf'g Co. v. HutchinsonCourt of Appeals for the Seventh Circuit · 1894
- M. M. Landy, Inc. v. John Nicholas, as Receiver of Continental Charterers, Inc., BankruptCourt of Appeals for the Fifth Circuit · 1955
- Live Stock State Bank v. DoyleCourt of Appeals for the Eighth Circuit · 1923
- W. P. Noble Mercantile Co. v. Mount Pleasant Equitable Co-operative InstitutionUtah Supreme Court · 1895
- Lippincott v. Shaw Carriage Co.U.S. Circuit Court for the District of Indiana · 1885
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