Nichols v. Waukesha Canning Co.

Citations

• 195 F. 807

Syllabus

<p>Corporations (§ 474*)—Pijjdges—Effect op Transactions.</p> <p>Where bonds of a corporation now insolvent were pledged to a bank, and though agreement was made that part of the bonds should be exchanged at par for notes held by the bank, the corporation paying a difference by check, the check was not cashed and the notes were not returned, and the bank is uncertain whether such part of the bonds aro held as collateral or in absolute ownership, all the bonds must be regarded as pledged, on bill to wind up the corporation.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 1854; Dec. Dig. | 474.*]</p> <p>2. Corporations (§ 469*)—Bonbs—Vapidity—“Money, Labor, or Property.”</p> <p>Issuance of bonds by a corporation for antecedent debts not released is not issuance for “money, labor, or property,” etc., within St. Wis. 1898, § 1753, which prohibits issuance for other purposes.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent Dig. § 1832; Dec. Dig. § 469.*] ___</p> <p>3. Corporations (§ 469*)—Validity of Bonds—Statutes—Repeal.</p> <p>The Wisconsin Negotiable Instruments Law (Laws 1899, c. 356) does not repeal or amend St. Wis. 1898, § 1753, which limits the purposes for which corporate bonds may be issued.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 1832} Dee. Dig. § 469.*]</p> <p>4. Corporations (§ 568*)—Insolvency—Distribution.</p> <p>The maxim, “equality is equity,” is generally applicable on distribution of an insolvent corporation’s assets.</p> <p>LEd. Note.—For other eases, see Corporations, Cent. Dig. §§ 2288, 22S9; Dec. Dig. § 568.*]</p> <p>5. Corporations (§ 544*)—Insolvency—Equitable Liens.</p> <p>A mortgage given by a corporation now insolvent, under which bonds were issued for antecedent debts in violation of St. Wis. 1S98, § 1753, cannot stand as an equitable lien in favor of holders of the invalid bonds who took them in consideration of a definite extension of time on notes or accounts held by them.</p> <p>[Ed.