Modern Dust Bag Co. v. Commercial Trust Co.

Bramhall, Vice Chancellor:

Plaintiff had been purchasing from Franklin Mills, Inc. (hereinafter designated as “Franklin”), a certain kind of paper used by plaintiff and manufactured exclusively by defendant. In making deliveries it was a practice for Franklin to deliver the paper purchased by plaintiff to the Wilmington Marine Terminal and draw invoices against plaintiff in favor of Franklin for the purchase of the paper. Franklin borrowed from defendant from time to time certain moneys, assigning its open accounts to defendant as collateral security therefor. When Franklin became financially…