Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-06-13
From The Nashville It'hig. May y.
CASE N BANKRUPTCY.

The oforoilon Ct tie involuntary prov .siors Oft
Bankrupt La" have been illustrated by as, dmuch
Importance IN the District court oihe nied States for
Middle Tonnt ssee, Judge NJ. W. Brown PRESIDING
We commend it TO the attention Of the commercial and
trading community, especially. afording an insight
into the remedy provided by tins law o of partial
az fraudulent assignments and couyeyancts made N fail
ing circumstances
On Nj nday last the cause Of the Planters Bank and
John Mckcage Gabraiih. Cromwell s, Co was
sailed, and The parties appearing hy counsel the trial
and argument proceeded through four days, and
brought 10 an issue until Thursday afternoon As the
case was enc Of much novelty and interest," being the
first in this Court and involving large estate the II
sral Court frequently crowded by spectators,
10 hear the examination Of witnesses aud the argument
ofcounse The facts Of the case as they appeared in
evidence are briefly these
Gabrah Cromwell Co. were partners in trade a,
Slarkssc Ia this State, and (under the firm OF Galbath
1ogan X Coz at New Orleans, Louisiana In the
month Vi April, they failed in business and became nsol
vent About the time Of The failure Cromwell one of
the firm, and the active partner at GAINESVILLE, made
assignment OF the partnership effects 10 certain
creditors; leaving unpovided for large debt due 10 the
Planters Bank, 10 Mckeage and other creditors The
claims OF the preferred creditors amount 10 upwards OF
$4,000 and the claims ei out Of the deed Of trust 10
100000. Logan, one of the firm, pHyy and con
scented To the gnment made by Cromwell The Other
partners, Gabraith aud Greenfield, New Orleans
and knew nothing of 1t when made and dsoned 10 the
transfer Of effects as soon as they heard Of il.
The Court decided. That the preference given by
Cromwell in the deed Of assignment made for the tenc
I'll Of part Of creditors in violation of the Bankrup
Law, and account OF this preference the debtors be
Ing merchants 1t fraud the part of Logan VIII,
colisenied 10 the transfer 1t act Of Bankrupc,
en- their pari and brought them and their effects undo
the operation ol the Bankrupt Law. the petition o
tle creditors. 2. That the deed of transfer made by
Cromwell, being IN violation Of the Bankrupt Law VA
otlery Void. g. That Galbraith and Greenfield wh
Lad Wedge of the deed at the time exccui
eJ and disseEied from the transfer soon they hear
81 il, weie not. personally, affected Ly the of Crom
well, and that the same was no act Of Bankruptcy oil
their part. 4. That Galbraitb, Cromwell l. Co., ant
the partners composing the firm, being iasolre,a ant
partners III ade the whole Of the partners be de
raseJ Bankrups by Of their insolvency, under tn
IL. Section of the Act Of Congress relation to Bank
Japicies. And decree was entered accordingly.
This decision, if Substantially future decisions the Fed
efa Couriand there to be little doubt entertain
cd present. OF It's correctness-settles most impor
tan point In relation ~ mercantile partnerships viz Iha
if the partners become nsolvent, they be declaret
ankups under the 4h Section cfihe Act of Congress
ACCOUNT Of their iasorenev alo'n The other point