The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-11-12
U. s. District Court.

In Bankruptcy-Beore Judge bstts
DEcIsIoSs-Wiiiiam L. Boofh.-The Bank of st. Adams
opposes decree barge and certificate TO the bank
ru on the ground that deo $ls272 - cents, due the
bank debt created by the bankrupt hie acting in
fiucary cap acty in respect this creditor he bank
Iup acted until 1876, agent oil the Bank in redeeming
IFS oils circulating the cty OF NV York and transm
n Inc @ oe one III
only that trust contemplated IN
the act of Congress. The Court, giving opinion
stated that the oil iuciary debt her disa
bles the from obtaining his cericate and IS
charge (uness the trust funds been ap lied TO h
use s,nco the passing Of the acp nor requires IRON to-
Court any qualification limitation TO the terms II
which the dschsrgeis granted 1t has been decided ~
the Circuit Coort oil his district Ceases OF Gsorg Brewn
and Samuel Brooks) hat debtor not disabled
from taking decree OF bankruptcy aud dis barge as
voluntary bankrupt, because of owing fducia nebs
he at the time debts clear OF sucn trur IA
racter.
The 4h section othe provides that every ba upt
(who shall observe certain prerequisites and under Ger
tsn exceptions not in question in this cae shall be enti
tied full discharge from ali his debts to tie decreed and
ao ed BY the Court which IS declared him bankrupt,
and certificate thereof granted to him by such court
cordingy, upon his petition hed for such purpose-ad
such discharge and certificate when duly granted shall
In all courts OF justice be deemeL full and complete dis.
charge OF all debs contracts and other engagements OF
uch bankrupt which are proreabie under this act"
The discharge made subject ~ impeachment and avoi
dance for fraud wilfnl concea,ment OF property or
rights Of property by the bankrupt in his proceedings
Alter EXTENDED remarks Judge B. in relation to the law
and the powers OF the Court decided that the discharge
must be granted.
ther the should be absolute and full be qua
lifted by exceptions from its operation the trust and du-
ciary deb SIC. The Court cited decision Of Judge Sto
ry Of Mass which conceded with its opinion. The
empow the Cuur TO give no oner than full dis
charge, under the provisions which IT has pointed out
Decree of discharge ordered.
abraham NJ ,chell-Obections had been filed by Lsu.
renee, Ny Co gainst the petitioner obtaining de-
cree on the round that he had clearly set forth
debt due TO them II also objects the omission in the
schedule of silver set obtane. by the petitioner
rahe-of his household furniture pu chased by his SON
MN n lnap in r nj
its the proceeds OF other property sent to Gin
cinnat and OF lot of land in the state OF Arkansas Also
that he had not kept pr. per set OF books.
The Court rendering its decision, stated that the tes-
mony showed Ny 10 be unfriendly terms with the
petitioner and said he thinks he refused to come to set
Element with him when applied to- as he hoped to prevent
Mchells discharge under the bankrupt act As regards
the OF debt therefore, the Court does
slider the petitioner blame There appears to be doubt
on the other point but not sufficient
though they might be brought up on the application Tor
final discharge Decree allowed.
John NJ OBSERVATION-DISCLOSURES Is one OF the most mpor
tant decisions that has yet been rendered Objections
presented the part Of several creditors, chag
First That the bankrupt in contemplation of bank
rupt law some during the year ls40 by assignment
Otherwise gave secured preference to one or more
of his creditors others.
second That he has done since the LIST day Of June
Isll.
In plation Of bankruptcy has given preferences,
&C. bringing the case by oper allegations within the
terms Of the two first clauses OF the second section OF the
act
Fourth That the petitioner gave preferences, &C.. to
creditors since the LIST day Of January 1sil without
sverrng that done in contemplation Of bankrupt
Fifth, That he Mad wilfuy concealed property in his
possession OF the time he iled his pets,ionsl Az
Tho bankrupt, in his examination, testified that his
house Briggs, QuackeDboss Day failed IN Novcm or,
l940 then owing about Sl00O0 and that preferences
given secure their endorsers to the amount of 100000
They also conveyed to of their largest creditors
house and lot in Buffalo, and secured some further pre-
ferenoes prior the LIST OF January Sil To question
asked the bankrupt whether he made these preferences
In contemplation OF the passage OF bankrupt law he
ans wered that he did The question and
discuss decide the exceptions because is
tablished by proof that the bankrupt knew efforts
making to obtain the passage OF bankrupt law and he
declared In December ls4O to Mr. Saonstall that his
house would proceed to arrange their affairs sell their
stock Of goods at auction to protect confidential
debts then make assignment and ait the passage of
general bankrupt law Similar language was used in
November December $780, to Mr. Bogardus clerk of
Of his creditors who pressing the house with
suits, that winter Congress would doubtless pass
ankrupt law, and they Qhe FIRM could go in for that
In opposition this, evidence offered o. repeated
declarations by the bankrupt lin the fall Of $40 that he
did not believe Bank rupt Bill would be passed by Con-
gress oil his having signed remoDstrance against 1t at
tha time and generally that he opposed TO the mea
sure-that the fall previous to his failure, when pre-
vailed upop by Mr. Jewett to contribute $40 TO aid the
passage of the law he declared his opposition TO the bill
then proposed, because II was not compulsory mus cha
racter
The competency ofthese declarat ons the Court stated
need not be debated now because they cannot weigh
agn his more deliberate assertions 10 his creditors
construction Of the statute before indicated by the CourO
preferences made with q general knowledge that bank
upt law was in progress through Congress- and the pro-
liability possibility Of is being law being In view of