Smith Middlings Purifier Co. v. McGroarty

Citations

• 136 U.S. 237
• 10 S. Ct. 1017
• 34 L. Ed. 346
• 1890 U.S. LEXIS 2209

Syllabus

<p>An appeal from a decree of the Circuit Court of the United States, dismissing a bill filed by creditors to set aside a mortgage by their debtor, is within, the jurisdiction of this court as to those creditors only whose debts severally exceed $5000.</p> <p>The filing of a voluntary assignment for the benefit of creditors, and of the assignee’s bond, in a probate court, under the statutes of Ohio, does not prevent a, creditor, who is a citizen of another State, and has not become a party to the proceedings in the state court, from suing in equity in the Circuit Court of the United States to set aside a mortgage made by the debtor contemporaneously with the .assignment.</p> <p>In Ohio, a mortgage by an insolvent trading corporation to prefer some of its creditors, having.been held by the Supreme Court of the State to be invalid, under its constitution and laws, against general creditors such a mortgage must be held invalid in the courts of the United States.</p>