In re Adamant Plaster Co.

Citations

• 137 F. 251
• 1905 U.S. Dist. LEXIS 224

Syllabus

<p>1. Corporations—Mortgages—Release—Construction.</p> <p>A manufacturing corporation owning plants at S. and H. executed a mortgage to secure bonds on its real and personal property in both places, describing it as all factories, structures, docks, appliances, and fixtures on each and all of the premises in any wise appertaining to and conneeted with the mixing chemical and calcining plant on such premises, and every interest, property, and thing necessary or convenient ior the use and enjoyment thereof. The bonds were not sold prior to the corporation’s bankruptcy, but were pledged as collateral security for demand notes given by the corporation; and after a sale of the corporation’s property at H., with the exception of certain personal property, consisting of furniture, etc., such personal property was removed and stored by the corporation, and the bonds were all stamped with a release of the property at H. Held, that such personal property could not be regarded as appliances or as property fairly appertaining to and connected with the plants on the. premises, or necessary for the use thereof, and was therefore not covered by the mortgage.</p> <p>2. Same—After-Acquired Property.</p> <p>Such mortgage did not cover furniture at S., nor. raw materials or manufactured products acquired after its execution, as against general creditors of the bankrupt corporation, in favor of bondholders purchasing the bonds with notice from the bankrupt’s trustee.</p>