, 1873-01-30
Tho Blalkes, Of Winnetl1a, In Court
Again.

lowed our. great calamity OF 1oH
SO long ns Stho parties struggled on IN the
common law, aud we're doclnrod to hnvo nc
r;ch,o rot,oIr, corea M 1ong an Tho n.rt;os ms
~. ~. rS,s,o",.ea ryo .s,,, 1,7..onasre1 T., H.
ID tho Anlcke1nooker CASEY aisappeAieo Al .ne
1aby1inths Of bankruptoy' nobody cared, but
making head,ray In ono Court, boipg delayed III
+h;ra ] a@,nneasaa nu % to oaritv to pivo tlom tnoI,
sghss tno saseot began ea' to attract attention
wero Justly the creditors Of oompa.
nios tint had 'tasaots sufficiently largo ia
Pay tnem orceoainl'4y hanasone alvluenusi l, Sos,
that tho laws OF tn's' state "oro insun'clons 70
=, -.acoure them = cent. Thus tho Importance Of
the attempt Of thcH., conplainauta to obtain the
= annont,nent NJ Roc, ,iyors to their oompan,cs-
~ ~ -, it ,.ia,cb +nsv oou1d r..ci tho a..
'ne on4J E7oeo " "" w sA's ooA'u 4o".'' .uo "'
sota fairly bolongin9 10 tno"-nas Decomo'
matter Of sedne Importance; and tho Htops tahcn
In the difrorept Courts havo been carefully re-
rordea IN thaGaw co]ur, OF this journal.
soau.u ~ .ue ~" e..o ,,nt;on snr t,o nv,
Tho matter came W. AN a motion for the ~ ap-
bill. in Denio min Y. Paes and VIM, spraeuoy Y,
a.. 1Tx,o,.ar,,, ,,,,or T,snr,rca comnnnv ora
o -ma 49, s,,ao,.t.aaat r.. =
Roco;poT n o10ni T. 9s,.e 'D0 ooatas tho ct stoos
i Mutual IuH1 lrnuce Company, and Chamber Of
Commerce '. lie National insurance Company
ali of which fero refused by the Court.
In the argu mont on tho motion in tho Knicker-
booker case, .Mr. shufoidt, for tho complainant,
went fully In: 10 tho history Of the Company, and
the transacti,ns leading up to the preaont suits,
NIL Of which has boon reported fully in this
column. The. following is brief Btatemont Of
tho facts as clal1uod By the complainantB: Tho
liabilities of tho Compary wero etatod by tho de-
PENDANTS to amount t. 91,4O0,00O whereas
they had been shown bv>tbe complanants to
DO only s5oo.ooo. Tho assets, which had
been In tho possession Of tho Company,
would have been equal ~ tho payment
Of all legitimate debts, but einco the fro
the ,stock,notoe, nortgagop, anil othor asaets
the late President Of tho Company, and, in con-
sequence Of hislmapagemeut. they g., ,ugod, Buch
funds had diminished. They furtholS charged
purpose Of paying 'sho debts Of the Company.
After the fire, procoolings IN bankruptcy were
instituted, and an adjudication was had Then:tho
parties appealed 10 the Supreme Court of the
than mere Prot ext for further delay, and thus
the affairs OF tho Company wcro hopeleaaly
tied up, awaiting tho exceedingly tedious
notton Of tho Supreme Court. Aftor those
Lad Ho ssGsi 6ns e. 5ss til ss fsR% S e. %
,Clreqlt Court, aiod this cause was commenced esa
sor sne purpose u. reaGnng III the aano.a ~ INC
plication Of tho ;oroperty Of the Company to the
payment Of tust,dobta. !. .,,. ,,,, 49,.
The demurrer 1'ow lntorpoaed to this Dill waB
on the ground tha the bill cannot DO maintained
without 1udgmeilt ns LAW, aso as 70 tne up.
Or equity u the b1l, ana a.s2 tnas tae United
States Bankruptcy Court having hrBt had 11r1a-
uietlop, this Courtihad none. I o.o.
In his opinion az 10 the motion N the hrat
PLACE, and the demurrer after"ard, Judge
Nihame spoks i,, at,cons1a9saple length, quoting
numerous authorlti Is. N enect, no was Or
up'o1 aa III y Wh t not o5 N 5thet hs 70
tFast EH''hi fnn,i he!a y the oiSeeFs et sho
corporation for, tho 9onens ,,;. o, tue eEemsors,
Judge Story, ho, IL treating Of implied trusts,
Enys ''Tlnt tot lis he:1d may bo referred that
class where the toek and other property OF pri-
yato corporationa'.is deemed trust fund for the
payments Of tho dobts 9f the corporation; 80
that the creditors have Len or right OF priority
Of payment on in preference to any Of the
stockholders. G. n>tracts OF tho corporation sur
:, riye its assolutio D. and creditors may enforce
re HER ean aa ust property belonging TO
hands of q bona f y pur., .,bsser, for such prop
orty VII be held al 1pcted '7tn tGe tsaas pt,ms
hodcps r Upon t1e rs eaa epa stock
1or tic payment of al the dobta OF .'e' corpora
''I.f. Ia ,,,rovoa ...o ,-,,,- ". eamo
foctenp 10 approves I other caaen holding ~ ansliv
JiPsom IN smo' "a oy Marahall 51s one Of
t muu 6o eoasldered IN Whit
raad ~ fa ~ opahson of ohancellor kent YES
ceaa cea m o. w. T1o fgumert and where he cites the
ro,'y,cto, ~ Wy nsmmer anu declares II as hia
rornoraton nre ~ aaU HsPltal s1oca anu asaeta ot
tta ohss 'tias s9 ssalae Iuna 1or enc payment OF
1,ncd 6T az - atso 10 eayh that tho doctrine was fully
satea IN y Mn Inc supp gme court OF tho United
ss1 1'e1 y ~ nualnaS " potomno company, peters
fho fo,,os;,, ueas consaae1od ana approved
n;ttnd b1 cas',, Wncn nRa peeh SUI,
thot ,tSS uS tno 1omplanantg' VINO claimed
iaan fnii1 ,n1 ~ gaesnon tTea!ea tharen had
premo Goprt ~ III ano qeoidga ,d IN + tno su
inrieJ;nta -; ~, ous,osa tho court aay Ihe
fha eorn" VI tn9 oourt s 9ueaaoneu because
nrea;tar uo IN NAM DaVloeon 1s not Judgment
aw TR nat coa aos = he 81 tneay tn yoa
+o,, ~ vf's s1. c'iou ~ auppor9 OF tn1s posi-
wv, 5W,,s-o "o tn1nK. nave oeen mlsapprehenoeo