Democratic Sentinel, Volume 2, Number 12, Rensselaer, Jasper County, 3 May 1878 — Important Supreme Court Decisions. [ARTICLE]

Important Supreme Court Decisions.

The following decisions have been given in the United States Supreme Court: Pullman vs. Upton, Assignee; error to the Circuit Court for the Northern District of Illinois. In this case the chief question decided is that an assignee of corporate stock, who has caused it to be transferred to himself on the books of the company and holds it ns collateral security for a debt due from his assignee, is liable for unpaid balances thereon to the company after it has become bankrupt. The principle of the decision is that the creditors of a bankrupt company are entitled to the whole capital of the bankrupt as a fund for the payment of debts due them, and this they could not do if the transferee of the shares is not responsible for whatever remains unpaid upon his shares, for by the transfer on the books of the corporation the former owner is discharged. The bankrupt in this case is the Great Western Insurance Company, of Chicago. Affirmed. Garfield et aL vs, Paris et al.; error to the Circuit Court for the Eastern District of Michigan. In this case the question was whether a contract was controlled by the laws of New York or Michigan. The defendants in error, liquor dealers in New York, sold liquor to appellants, citizens of Michigan. The prohibitory liquor law of the latter State rendered the sale void if the contract was controlled by it. The decision is that, as the sale was made in New York, and as part of the delivery was made, it was a New York contract, and one hot affected by the statute of frauds of the State. Affirmed.