In re Olzendam Co.

Citations

• 117 F. 179
• 1902 U.S. App. LEXIS 5087

Syllabus

<p>1. Liens—Enforcement in Equity—Title of Receivers.</p> <p>Petitioners entered into an agreement with a manufacturing company-in New Hampshire, by which they agreed to make advances to the company, in consideration of which they were to have the sale of all its product at an agreed commission, and also to have a lien for thfeir advances on all goods of which invoices were sent them, whether actually shipped or remaining in the hands of the company. Invoices of certain goods were sent petitioners, showing their shipment for sale on account as per contract. The ■ goods were not in fact shipped, hut were packed in cases, and set apart in the company’s warehouse, to be forwarded on petitioners’ order. While so remaining, receivers were appointed for the company, which was insolvent. Petitioners had previously made advances beyond the value of the goods in their possession, after the company became insolvent, but without knowledge or reason to know such fact. Held that, there being no rule of law in New Hampshire making possession of the goods retained by the company a conclusive badge of fraud, petitioners had an equitable lien thereon for their advances, which they were entitled to enforce against the company or its receivers.</p> <p>2. Same—Construction of Contract.</p> <p>A manufacturing company contracted to make and furnish to a contractor certain goods which he had contracted to supply to the government. Petitioners made advances to the company under an agreement that it should make the bills for the goods furnished under the contract payable to petitioners, who were to receive all the proceeds, to be applied in payment of such advances. The company was insolvent at the time, but petitioners believed, and had reason to believe, that it was solvent. After a portion of the goods had been furnished under the contract, and petitioners had received the proceeds thereof, receivers were appointed for the company, who came into possession of certain cases of goods which