Schaffer v. Federal Trust Co.

Defendant moves to strike the first count of the bill of complaint on the ground that it discloses no cause of action.

Complainant is receiver of Southland Distillers Distributing Company, an insolvent corporation. The Southland Company, from the time of its organization about the end of 1933, until it was adjudged insolvent in January, 1940, was engaged in the business of buying and selling warehouse receipts covering whiskey. The purchases it financed through the defendant Trust Company which took and held the receipts as collateral for the money advanced by it. Southland, in turn,…