Stewart v. Johnston

In 1933, the Washington Brick, Lime and Sewer Pipe Company had fallen upon evil days. In the depths of the depression there were no orders for bricks or terra cotta and the company was insolvent within the purview of Rem. Rev. Stat., § 741 (now Rem. Rev. Stat. (Sup.), § 741 [P.P.C. § 91-3]), and a receiver was about to be appointed in an action then pending. To forestall the receivership, a trust deed to Eric A. Johnston, for the benefit of its creditors, was executed by the corporation on July 20, 1933, which trust deed covered all of its property, real, personal, and mixed. This trust deed…