The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-07-29
u. y. Dlstsict Court.
Before Judge Belts.
foIlowin0 hiohlv tnportant

JuLr 4s--Dxc,sioss.-The following highly important
decisions rendered this forenoon:--
John ". Hall and .4braham H. Smith.-This was up
plca.ion for compulsory bankruptcy Objections were
raised to the right of creditors in declaring them such.
he petition states that Hull and smith merchants
and copartncis In the four months from August to No
vcmber last they purchased from petitioners and Others
OF selling such again in New York instead of which it
has been asceItained that they shipped them of with
view Of dsirauding their creditors In the early part Of
December they failed not having paid any part OF said
$4,000 and declared themselves nsolvent Hull abscon.
dcd from the city, and is still away and Smith sold the
remnant of property that had been left The Court. after
Civ ing its views in relation to involuntary bankruptcy
concluded as (oiIows:" Considering these debtors
continuing indebted and partners up to the time the petit
ton filed shall hold that their mere Insolvency
without evidence Of fraudulent acts would not be u
Glen, to sustain the preceding but they arc liable to be
declared bankrupts upon the acts Of fraud committed by
their partnership anterior to the passing of the bankrupt
act as set forth in tho petition The parties may there
fore beproceeded against to bankruptcy"
John Bsiicy-Objections has been male to petitioner
on the ground Of fraud In receiving at various times
large sums OF money during the Of his business
and not paying his creditors. A commission had been
allowed and bis affairs gone into for the last years
lie went to Goshen in 1920 and commenced business
e SoPs, Of 1000 and essns about $500 worth Of house
been keeper Of the county Jail, butcher clerk, &c.
Every thing was subsequently, swept from him, and he
reo' cd to Middleown His sons-inaw bought In some
OF his property and ii isconended that the sale was not
bona hde. Of money have also been In his
sion, Sc The Court held that man being seen With
thousand dollars In January could not matter CON
sequence, be declared 10 have been possessed of it IN
March. Although caressness in keeping his books
eynced, his insolvency readily be accounted for by
his ungainu adventures land speculsons, sc. II
shown he hal possessed claim TO the real estate
since his son-inaw bought II, had he Cor year pre-
viousto his petition to the personal Objections dsallow
ed, and petitioner permitted to proceed TO decree.
Bro~n Ring-This had been referred TO com.
missioner objections having been raised by Plat Rogers
Execution taken by the petitioner the ground that
the creditor had not proved his debt This sustained
by the commissioner, and the question referred to this
Court One OF the charges is for making false assign
menalso that he has not made full list OF his ere.
dtors The Court, during its remarks In alluding TO a
petitioner In bankruptcy, holds the following emphatic
language After he has in and given up all his e
fecs new relationship betw cen him and his
cIedtorone in which the Interior hazards all his
and the advantages any exist fall to the side of his
creditors The decree can never be revoked and his pro-
perry cannot be rcstorcdtha, allotted absolutely
70 his creditors and he WILL further be deprived Of the
benefit OF discharge he expectation of which his
nducemcnt for seeking decree OF bankruptcy under
certain circumstances pointed out by the act The Court
decided as follows My opinion is that the creditor can
not ghtfuiv file objections and make opposition to the
discharge ofthe bankrupt for want Of having properly
proved his debt