Page:Federal Reporter, 1st Series, Volume 1.djvu/287

 MBGUIAR V. GROVBS. 279 �the stock, or indebtedness, of the corporation, if such policy is regarded necessary for the interests of the company. See Minn. Eev. St. 396, § 121; LawB Minn, 18Î5, p, 63. �A court of equity will not interfere with the internai policy of a corporation unless it is manifest that the proposed act i» ultra vires. I am not satisfied, from the affidavits read at the hearing, that an inerease of stock will cripple the corporation a,nd make it insolvent, or that an inerease of indebtedness may not be proper. There is no fraud or conspiracy on the part of the defendants, -who are stockholders, to injure the complainants. I have not considered the question whether the complainants are entitled to any equitable relief, but, for the purposes of this motion, concede it. �Ail injunction is refused, and the restraining order is dissolved. ���Meguiar, Trustee, etc., v. GrovEs and others. �(District Court, D. Eentucky. March 4, 1880.) �Surettes— Chattel Mobtgagb — Extension of Timb of Patmbnt — Evidence. — A chattel mortgage, partly given to secure a pre-existing debt, will not discharge the sureties of the debtor, unless such mortgage purports upon its face to extend the time of the payment of the debt for a definite period. �TF. 0. <& J. L. Dodd, for plaintiff. �D. W. Armstrong, for defendants. �Brown, J. This is a biU in equity to foreclose a mortgage given by Meriah L. Mayes and John B. Mayes, her hnsband, to F. S. J. Eonald, of whom the complainant is trustee in bankruptcy. This mortgage was given by Mayes and wife, upon the property of the wife, to secure a note for $2,000, dated January 26, 1875, payable to Eonald, and made by Groves as principal and Mayes and wife as sureties. Mayes and wife have answered, and pleaded in defence (1) the cov- erture of Meriah L. Mayes at the date of the note and mort- gage ; (2) that the mortgage was without consideration as to the said Meriah L. Mayes and John B. Mayes, but was given ��� �