International Shoe Co. v. Smith-Cole, Inc.

MeDERMOTT, Circuit Judge.

In December, 1931, Smith-Cole, Ine., was engaged in the mercantile business in the City of Ada, Oklahoma. It was indebted on open account or unsecured notes, to 30 creditors, totaling approximately $16,000. In an action in the state court, brought by one of the creditors, the court found that by reason of the business depression, the company had been unable to provide for payment of its obligations as they matured, and that there was imminent danger that the sound value of its assets would be sacrificed in a race for priorities, to the injury of the company and its…