New York Supreme Court January 15, 1900 (Standard National Bank v. National Silk Label Co.)

Russell, J.

When a corporation becomes insolvent or ceases to do business, its property is charged with a trust for the benefit of ■ its creditors in order that their claims may be equally or ratably satisfied before it passes to stockholders; and any preference to one creditor or deviation from the application of that property to the just payment of debts may be set aside. Bartlett v. Drew, 57 N.