Stephen Johnson Field

“ In that case there is still a debt due to the corporation, which, if it become insolvent, may be sequestered in equity by the creditors as a trust fund liable to the payment of their debts. But where full-paid stock is issued for property received, there must be actual fraud in the transaction to enable creditors of the corporation to call the stockholders to account.' Under this authority no foundation is laid for calling upon the estate of the deceased to pay anything more for the stock issued to him than was paid. ”

“ The parties who became stockholders had, pursuant to a previous agreement, conveyed their lands to a trustee, in trust for the corporation formed, upon an understanding that stock should be issued to them in proportion to their individual interests in the property. ”

“ A chattel mortgage was thereupon executed to the bank by the lumber company upon all its logs and lumber, to secure such advances, as well as other debts of the company. The bank immediately took possession of the property, and made further advances to the amount of $20,000. On the 8th of April following, the two Ketchums filed a bill in a state court of Wisconsin to set aside this chattel mortgage, making the bank, the company, and all its stockholders, except Waterman, parties, and alleging that the mortgage was a fraud upon the company ”