B. F. Goodrich Co. v. Wisconsin Auto Sales, Inc.

Wisconsin Auto Sales, Inc., a corporation of Milwaukee, Wisconsin, was insolvent. In the course of bankruptcy proceedings a “plan of arrangement” was agreed upon and put into operation whereby the creditors received defendant’s promissory notes, without interest, in evidence of their respective claims. Five voting trustees were selected by the creditors and were given a majority of defendant corporation’s capital stock, indorsed in blank, so that they controlled the corporation. They were charged with liquidating the company and distributing the proceeds among the creditors. The trustees…