The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1842-06-23
From ahe Petersburg Iniellieeneer.
IMPORTANT DECISION IN BANK
RUPTcY,


IMPORTANT DECISION IN BANK.
RUPTcY.
The operation Of The involuntary pro
visions &c The BankruPt Law have been
illustrated BY case Of much inporisnee
in Inc Dis,rici Court Of the United States
for middle Tennessee. Judge NJ. w. Brown
presiding. We commend II 70 The s,len
ZION of The commercial and trading CON
munily especially. IS slfording an insight
into The remedy provided by this bsn.fi-
Glen, law forcsses of partial or fraudulent
assignments and cenveysncss, male IN
failing circumstances.
The Iacls oil the case. as we find them
stated in Nashville Wig. sae briefly
these:
Galbraiih. Cromwell a. Co. were part
ners in trade 81 cIarksslllr. in this Stale,
and (under the firm Of Galbrallh, Lngsn
a. Co.. a; New Orleans. Louisiana. In
the month Of April they tailed 10 bu'i-
ness and became insolseni. About die
lime Of the failure, Cromwell. one oil
the firm, snd the active partner ., Clafks
vile, made an assignment Of The partner
ship eject. 10 secure certain creditors.
leaving unplovided for large debt due
10 the Planters Bank. McKeage and 9TH
er creditors. The claims Of the prefer
red creditors amount to upwards 81 $50.
600, and the claims left out Of The deed
81 tusi TO 100000. Logan. one Of tie
firm, vas prlvy. and conserved 70 the SIS
sipnmeni made by Cromwell. The 9th.
er partners. G,lbra,th and Greenfield.
were al New Orl,sns and knew nothing
OF il when m.de, aud dissentrd to The
transfer Of sifecis as suon as they heard
fil.
The Court decii'ed-l. That the pre-
ference given Cromwell in the DEED Il
assignment made fnr The benz O. Of part
Of the creditors. was in siula,ion Of the
Bankrup, Law. and on sccouU. Of this
preference. the debtors being merchants.
/, was fraud on The parI Of Cromwell,
and also on the part oil Logan. who con
scented TO the transfer. IL was IN scI
Of Bankruptcy on their part, and brought
them end their effects under The operation
Of The Bankrup, Law on the ps,ilion Of
their creditors.
2. That The deed OF transfer made by
Cron veil, being in violsiion Of the Bsnk'
rupl I.sw. was utterly void. 3. That Gal.
brai,h and Greenfield. uho had no kn"w'
ledge of the deed al The time il was exc
cuied. and dissrnied from the transfer as
soou as they heard Of il, we're not. person
ally, affected By the act 81 Cromwell. and
lhs, the same was noi an act oI Bankruptcy
on their part. 4. Tha, Gslbrsiih. Cr"m'
well g., and partners composing the firm,
being insOiveni and parinsrs IN trade, the
whole Of the partners must be declared
Bankrupts by reason Of ,helr Insolvency,
under The 18th section Of The Act Of Con
gress 10 relation of Bankruptcies. And |
decree was On cred accordingly. "
This decision settles most imporian
point in relation TO mercantile partner
ships, viz; That il the parthers becoms
insolvent, they can be declared Banknpi'
under The l4'h Secnnn nf the Actol Con
gress, on account of their Insolvency a.
lone.
The effect Of the foregoing decision up
on the partners acquitted Of fraud, but de
clsred Banktnpts By reason Of their in
solvency, is The same as IN cases Of 70
lunisry Bankruptcy. The commissioner
and assignee having rep 'ned full and
satisfactory surrender Of all the efTscIs
individual as well as partnership. under
The cnntr Il of Messrs. G 'lbrsilh ant
Greenfield. they are entitled To fual dis.
charge and certificate upon 'heir own re'
ttion. unless other cause If denial than
the acts OF their partners should N the
mean time tran'pirc The Clak'vlll'
partners occupy different position. ant
can only be discharged by The cOnsent o.
a maturity, in in'ercs', Of the n-prefer.
red crednors. @"..r.: