Magruder v. Hattiesburg Trust & Banking Co.

Citations

• 108 Miss. 857
• 67 So. 485

Syllabus

<p>1. Equity. Pleading. Cross-hill. Bankruptcy. Trustees. Powers. Corporations. Deeds of trust. Construction. Franchise.</p> <p>Where stockholders, of a trust company filed a bill to set aside an agreement, whereby the trust company guaranteed the payment of bonds issued by a foundry company, and also sought to have the trust company relieved of all obligations connected, with and growing out of the arrangement and the trust company filed a cross-bill to foreclose a trust deed 'given to secure payment of the bonds, and sought subrogation to the rights of the bondholders as to those bonds which it had taken up-under an agreement. Under Code 1906, section 587, providing that a defendant in a chancery suit may make his answer a cross-bill, and may introduce any new matter therein material to his defense, a cross-bill by the trustee in bankruptcy of the foundry company, whereby he sought to set aside a deed of trust securing the bonds, and to recover, as preferences, certain named payments made to- the trust company, was not subject to demurrer, as introducing new matter not germane to-the original bill, for such matters did not violate the rule that a cross-bill must be ancillary to the original bill, so as to complete the determination of the matters in litigation. .</p> <p>2. Bankruptcy. Trustees. Powers.</p> <p>In such case the trustee in bankruptcy of the foundry company, one of the defendants to the original bill, was a proper party to the suit, and the court was right in permitting him to appear as a party defendant and interpose defense by filing his answer and making it a cross-bill.</p> <p>3. Corporations. Deed of trust. Construction. Franchise.</p> <p>Code 1906, section 904, declaring that a-mortgage or deed of trust conveying the franchise or income or future earnings of any corporation, shall not be valid, it not violated, where a deed of trust described the property as “all of the following real estate, plants, factories, grounds, charters, machinery right