Widrig & Co. v. Newport Street Ry. Co.
Court of Appeals of Kentucky
Case 81 — CORPORATION, TRUSTS APPEAL PROM CAMPBELL CHANCERY COURT. 1. Carriole and other appellees were directors of the street railway company when they bought the bonds of the corporation at sixty cents and sold them at from seventy-five cents to a dollar. 2. Whatever of profits they made, they must in equity account for. ,3. They are held as trustees and fiduciaries of the company, and neither the creditors nor the other directors will be permitted to suffer from the…
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Case 81 — CORPORATION, TRUSTS APPEAL PROM CAMPBELL CHANCERY COURT. 1. Carriole and other appellees were directors of the street railway company when they bought the bonds of the corporation at sixty cents and sold them at from seventy-five cents to a dollar. 2. Whatever of profits they made, they must in equity account for. ,3. They are held as trustees and fiduciaries of the company, and neither the creditors nor the other directors will be permitted to suffer from the attempted speculation. (Potter Corporations, volume 2, sections 686, 832, 704, 714; Perry on Trusts, volume 1, section 207;…
1Opinion of the Court
JUDGE PRYOR
delivered the opinion op the court.
There seems to be no controversy in this case as to the liability of the corporation, as first created, to the appellants; in fact they are in court with a judgment and a return of no property, seeking, as the appelleesinsist, to make their debt out of a subsequent and distinct corporation.
The Newport Street Railway Company was chartered in the year 1864, and a majority of the stock was owned by one Robbins, who was also a director in the corporation. The corporate funds were insufficient to complete the contemplated railway, and it became…
2Cited by2 opinions
- Ecker v. Kentucky Refining Co.Court of Appeals of Kentucky · 1911
- Blake v. RayCourt of Appeals of Kentucky · 1901