Joseph v. L. Levi & Co.
Joseph v. L. Levi & Co.
Opinion of the Court
delivered the opinion of the court.
• Because of their susceptibility of abuse, by reason of the ease with which they may be employed for wrong purposes, to the injury of creditors, many courts have condemned, as fraudulent and void, mortgages and deeds of trust on stocks of merchandise which provide for the retention of possession by the maker of the instrument, with power to sell and replenish the goods in the usual course of such business.
This court has committed itself to this view. Harman v. Hoskins, 56 Miss. 142.
The instrument under consideration shows an effort to avoid objection to it, by stipulating for monthly accounts of the business to be rendered to the trustee, and for payment to him of the money received, to be applied under his direction to the maintenance of the business, by payment of current expenses
The deed of trust being fraudulent per se, its execution was ground for an attachment. Roach v. Brannon, 57 Miss. 490.
The fair interpretation of the judgment is that it is for the value of the several articles, as shown by the schedule of them, aggregating the total of $3,500. The defendant is entitled to discharge himself pro tanto, by surrendering any of the articles embraced in the schedule, at the, value therein attached to such article.
Affirmed.
Reference
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- E. Joseph v. L. Levi & Co.
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- 1. Sbaudui/ent Conveyance. Deed of trust on stock of goods.- A deed of trust on a stock of goods, which provides for the retention of possession by the grantor, with power to sell and replenish the goods in the usual course of his business, is upon its face fraudulent and void as to his creditors ; and such effect cannot be avoided by a stipulation in the deed for monthly accounts to be rendered to the trustee, and for payment to him of the money received, to be applied, under his direction, to the payment of the curren t expenses of the business and in making purchases to replenish the slock. 2. Attachment. Gh-ound therefor. Fraudulent conveyance. The execution by a debtor of a deed of trust upon his property, which is per se fraudulent as to his creditors, is a good ground for attachment.