Recent Important Decisions

Bankruptcy – Appointment of Receiver as Act of Bankruptcy – An insolvent corporation, against which a creditors’ suit was brought in the state court, procured the appointment of a receiver therein by an answer and cross bill in the name of its president, who was a defendant, and who with one other stockholder owned the majority of the stock and controlled the corporation. Held, that the corporation applied for the appointment of a receiver within the meaning of §3a(4) of the BANKRUPTcY AcT, making such application, while insolvent, an act of bankruptcy; it being unnecessary that the application be by a bill or cross bill filed in the name of the corporation. Graham Mfg. Co. v. Davy-Pocahontas Coal Co., 238 Fed. 488.