In re John B. Rose Co.
Court of Appeals for the Second Circuit
Appeal from the District Court of the United States for the Southern District of New York. In the matter of the John B. Rose Company, bankrupt. On appeal by the Metropolitan Bank from an order of the District Court.
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Appeal from the District Court of the United States for the Southern District of New York. In the matter of the John B. Rose Company, bankrupt. On appeal by the Metropolitan Bank from an order of the District Court. The John B. Rose Company is a corporation organized under the laws of the state of New York, and was adjudicated a bankrupt on June 11, 1918. The Metropolitan Bank on September 24, 1918, filed proof of claim in the sum of $25,000. The proof of claim is based upon an alleged guaranty which may be found in the margin.1 The proof of claim invokes the guaranty in respect of 16…
1Opinion of the CourtRogers, Circuit Judge
(after stating the facts as above). [1] A corporation ordinarily is without power to enter into a contract of guaranty, as such a contract is foreign to the objects of its creation and hazards its funds in a manner unwarranted" by the contract "which *418exists between- it and the state, and between it and its stockholders. The existence of such a power is sometimes implied, however, when it is necessary to enable a corporation to accomplish the objects for which it is created, or when it'is reasonably necessary in the conduct of its business.
It appears that the bankrupt, the John B. Rose…
2Cases cited29 opinions
- Union Pacific Railway Co. v. Chicago, Rock Island & Pacific Railway Co.Supreme Court of the United States · 1896
- Louisville, New Albany & Chicago Railway Co. v. Louisville Trust Co.Supreme Court of the United States · 1899
- Monument National Bank v. Globe WorksMassachusetts Supreme Judicial Court · 1869
- Ward v. JoslinSupreme Court of the United States · 1902
- Green Bay & Minnesota Railroad v. Union Steamboat Co.Supreme Court of the United States · 1883
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3Cited by8 opinions
- Henderson Tire & Rubber Co. v. GregoryCourt of Appeals for the Eighth Circuit · 1926
- In re John B. Rose Co.Court of Appeals for the Second Circuit · 1921
- Williams v. Sawyer Bros.Court of Appeals for the Second Circuit · 1930
- Coal & Iron Nat. Bank of New York v. SuzukiCourt of Appeals for the Second Circuit · 1924
- Real Estate-Land Title & Trust Co. v. Commonwealth Bond Corp.Court of Appeals for the Second Circuit · 1933
3 more not listed; retrieve them via the Exa API.