Boyce v. Continental Wire Co.
Court of Appeals for the Seventh Circuit
Appeals from the Circuit Court of the United States for the Southern District of Illinois. In 1896 the Continental Wire Company made a trust deed of its manufacturing plant to Boyce, trustee, to secure the payment of 125 bonds, of $1,000 each. The trust deed did not specifically pledge the rents and profits, but it did provide that on default the trustee might take possession.
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Appeals from the Circuit Court of the United States for the Southern District of Illinois. In 1896 the Continental Wire Company made a trust deed of its manufacturing plant to Boyce, trustee, to secure the payment of 125 bonds, of $1,000 each. The trust deed did not specifically pledge the rents and profits, but it did provide that on default the trustee might take possession. The indebtedness having become due and remaining unpaid, the trustee in October, 1898, filed his bill to foreclose, making the Continental Wire Company sole defendant. The bill showed the insolvency of the defendant,…
1Opinion of the CourtBaker, Circuit Judge
The bill was against the mortgagor corporation alone. It appeared and consented to the appointment of a receiver. It thus virtually confessed at the beginning, as it did explicitly in the foreclosure decree, its insolvency, the lack of other property, and the insufficiency of the mortgaged estate to pay appellant’s bonds. By this action, and by voluntarily turning over the plant to the receiver, the mortgagor impregnably established, as against itself, that at the time the bill was filed its right of possession had ceased. And the facts respecting insolvency, inadequacy of the security, and…
2Cases cited5 opinions
- Miltenberger v. Logansport Railway Co.Supreme Court of the United States · 1882
- Kountze v. Omaha Hotel Co.Supreme Court of the United States · 1883
- First National Bank v. Illinois Steel Co.Illinois Supreme Court · 1898
- Grant v. Phœnix Life InsuranceSupreme Court of the United States · 1887
- Cross v. Will County National BankIllinois Supreme Court · 1898
3Cited by2 opinions
- Cone-Otwell-Wilson Corp. v. Commodore's Point Terminal Co.Supreme Court of Florida · 1927
- Boyce v. Continental Wire Co.Court of Appeals for the Seventh Circuit · 1903