Merchants National Bank of Richmond v. Newton Cotton Mills
Supreme Court of North Carolina
This was a civil ACTION in the nature of a general creditor’s bill brought by the plaintiffs, The Merchants National Bank of Richmond and others, against the Newton Cotton Mills, alleging the insolvency of the defendant corporation, and asking for the appointment of a receiver and the distribution of its assets among its creditors.
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This was a civil ACTION in the nature of a general creditor’s bill brought by the plaintiffs, The Merchants National Bank of Richmond and others, against the Newton Cotton Mills, alleging the insolvency of the defendant corporation, and asking for the appointment of a receiver and the distribution of its assets among its creditors. The action was commenced in October, 1893, and was brought to the February Term, 1894, at which time, no answer being filed by the defendant, M. L. McCorkle was appointed receiver to collect the choses in action of the corporation, and to sell the real and personal…
1Opinion of the Court
MacRae, J.:
Let us examine first the case presented by the appeal as to the right of an insolvent corporation to make a preference. It is contended, with great learning and research by the counsel for the appellees that when a corpo ration becomes insolvent, it is thenceforward unlawful for its directors to make any preference in the payment of its debts, but that all its property must be kept and administered for the common benefit of all its creditors, in the same manner as if the receiver had taken charge thereof under section 379 and 668 of The Code.
The late cases of Hill v. Lumber Co.,…
2Cases cited10 opinions
- Hollins v. Brierfield Coal & Iron Co.Supreme Court of the United States · 1893
- Curran v. ArkansasSupreme Court of the United States · 1853
- Marshall Foundry Co. v. . KillianSupreme Court of North Carolina · 1888
- Blalock v. Kernersville Manufacturing Co.Supreme Court of North Carolina · 1892
- Hill v. Pioneer Lumber Co.Supreme Court of North Carolina · 1893
5 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- McIver v. Young Hardware Co.Supreme Court of North Carolina · 1907
- Johnson v. PhillipsCourt of Appeals of Maryland · 1923
- Smathers v. Bank.Supreme Court of North Carolina · 1904
- Holshouser v. . Copper Co.Supreme Court of North Carolina · 1905
- Powell Bros. v. McMullan Lumber Co.Supreme Court of North Carolina · 1910
18 more not listed; retrieve them via the Exa API.