O'Bannon v. Moerschel

Plaintiff is trustee in bankruptcy of the estate of the corporation known as The Schultz Dry Goods, Carpet and Ready-to-Wear Company. Prank J. Linholf was president of that corporation and owed Jacob- P. Moerschel, in the latter’s lifetime, a sum amounting to near $50,000 in interest-bearing -notes given for borrowed money. Linholf paid the interest regularly by checks of the corporation signed by him as president and Moerschel cashed these checks. The corporation was declared a bankrupt on the petition of Jacob W. Moerschel as one of its creditors, the corporation, through Linholf, admitting…