In re Golden Malt Cream Co.

• Decision Date: 22 July 1908
• Docket Number: 1,418.
• Citation: 164 F. 326
• Parties: In re GOLDEN MALT CREAM CO. v. GOLDEN MALT CREAM CO. NATIONAL CHEMICAL CO. et al.
• Court: U.S. Court of Appeals — Seventh Circuit

164 F. 326

In re GOLDEN MALT CREAM CO.

NATIONAL CHEMICAL CO. et al. v. GOLDEN MALT CREAM CO.

No. 1,418.

United States Court of Appeals, Seventh Circuit.

July 22, 1908

The respondent, the Golden Malt Cream Company, is an Indiana corporation, engaged in manufacturing and trading in drugs and chemical compounds. October 4th, 1906, one Charles A Loring, a stockholder and the secretary of petitioner appearing by one John A. Hibbard, also a stockholder and the president of the company, in a bill in the St. Joseph County Circuit Court of Indiana, praying for the appointment of a receiver to take charge of the property of respondent, and make distribution thereof, alleged:

'That the total assets of said corporation are of the probable value of $35,000.00. This plaintiff alleges that he is a stockholder of said defendant corporation and that said defendant corporation is insolvent and has not now moneys means, property or assets with and out of which to pay its existing indebtedness; that it is indebted to numerous and divers persons in the aggregate amount of $25,000.00; that a large portion of such indebtedness is past due and said defendant corporation has not now the money and assets to meet its obligations or to pay its overdue indebtedness, and that certain of the creditors of said corporation are threatening to bring suits against the corporation to recover judgment on the debts due them, thereby creating a preference in their favor as against the other creditors of said corporation to the prejudice of their rights and to the rights of the stockholders.

'Petitioner further alleges that the business of said corporation as now conducted is being conducted at a loss and that if continued the said defendant corporation will become and be wholly insolvent and the assets thereof will be wholly insufficient to pay its indebtedness and nothing whatever will be left for the stockholders of said corporation.'

On the same day, by unverified answer, the respondent admitted that the indebtedness was nearly twenty-four thousand dollars that a large portion of the same was past due; and that it had no available means at hand with which to meet the same; and upon the complaint and answer thus filed, and upon the same day, also, the following order was entered:

'That this defendant admits the allegations of said petition to be true except as to the allegations of insolvency and as to the amounts owing by this defendant to the plaintiff and other parties as set forth in said petition.

'That the business of this defendant has been and is now being conducted at a loss and if continued as it is now conducted the indebtedness incident thereto, which will be incurred by this corporation, will be greatly in excess of its means with which to pay and in excess of its property and assets.

'That this defendant corporation is indebted to various persons and firms, amounting in the aggregate to nearly $24,000.00; that a large portion of such indebtedness is past due and defendant has no available means at hand with which to meet the same and certain of its creditors are threatening to institute suits and recover judgment against the corporation, to issue and levy executions upon its property thereby creating a preference in their favor and preventing this defendant from filling certain orders now on hand for finished product and preventing this defendant from converting certain raw material on hand into finished product and disposing of same at a profit.'

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