Shaw v. Saranac Horse Nail Co.
New York Court of Appeals
Appeal from order of the General Term of the Supreme-Court in the third judicial department, made May 8, 1894, which affirmed an order of Special Term modifying an order of Special Term which modified the report of a referee and confirmed the same as modified.
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Appeal from order of the General Term of the Supreme-Court in the third judicial department, made May 8, 1894, which affirmed an order of Special Term modifying an order of Special Term which modified the report of a referee and confirmed the same as modified. In January, 1883, the Saranac Horse Nail Company owed a large amount of debts, and its board of directors duly resolved to issue coupon bonds of the company to the amount of $30,000, of the denomination of $500 each, secured by ° mortgage upon its real estate, “for the purpose of raising-money to pay the floating debts of the company,”…
1Opinion of the CourtEarl, J.
We are of opinion that the referee was right in holding that the bonds sold and delivered to Town, Farrell, Moffett and Ellis, and subsequently transferred to Vilas, or his administrators, were entitled to share pro rata in the proceeds of the sale of the real estate. Those bonds were issued in precise accordance with the authority conferred upon "Williams, and the company received the full amount thereof in cash. They have never been paid or discharged by the company, and in the hands of the administrators of Vilas, to the extent of their interest therein, they were valid obligations against…
2Cases cited2 opinions
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