United States Rubber Co. v. American Oak Leather Co.

Syllabus

<p>The right of an insolvent debtor to prefer one creditor to another, exists in the State of Illinois to its fullest extent, and the giving of judgment notes is recognized as a legitimate method of preference.</p> <p>In the absence of national bankrupt laws, if a remedy is sought in a court of equity against fraudulent preferences, it must be on allegation and proof of a design to defraud and to delay the complaining creditor.</p> <p>While the policy of the law permits preferences, and such preferences as . are necessarily unknown to others than those concerned, it does not permit any device which prevents the debtor from giving a like advantage to his other creditors, if he so wishes, unless such device is put in the form of a mortgage, or other instrument, perpetually open to public inspection upon the public record.</p> <p>The present case is one in which the fundamental rule that equality is equity, may properly be applied.</p>