Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1843-11-10
UNITED STATES DISTRICT COURT, YER.

man, ana was tlled August l2h lS4S. The PEE
tlon, after setting forth an Indebtedness TO the
petoning creditors ia sum exceeding five hun
dred dollars, nlledged that Morse and Chapman,
being partners in trade owing more than two
thousand dollars, and insovent, on the 18th day
OF May, 1912, made and executed to one Orange
Smith, fraudulent conveyance, assignment aud
transfer of all their lands and tenements, goods
and chattes, and credits aud evidences OF debt
and prayed that they might be declared bankrupts.
1t appeared that, on the 9th day OF May, 1912,
Amplius Blake, to whom Morse and Chapman
were indebted in the sum of $4,000, attached all
the goods in their store to the debt that on
the day following Orange Smith, who was then
holden as surety for Morse ard Chapman n
note to the bank Of Montpelier for $500, and on u
note to Guarantor Hastings for $3.50, at the re
quest of Morse and Chapman, and III considera-
tlOh OF their making the assignment hereafter men
toned, executed houd to BukG guaranteeing the
payment of his debit who thcreupon discharged
his attachment. On the same day, Morse and
Chapman accordingly executed to Smith al as-
sigument of oil their notes, amounting to $500;
all the demnuds due them on book, amounting TO
$500 aud all the goods and effects belonging 10
them in their store, amounting TO S3OO0;
To have and 10 hold the same for the bet
ter security and payment of the following credit
ors, III the following order: First, 10 the Bank
OF Montpelier $780, Guaranior Hastings $780,
Charles Chandler $500 Lucy Carpenter Sal
Jenl-on Jones S67, Pau Royce &:Sj, f. o JUS
lin S67 aud George W. Barker SD. Second, to
pay Amphus Il AXE SIX pronissory uotes, dated
May 24th 1910 Tor $}l0U, and the interest thereon.
Third, to pay an other dehis due fro u Worse aud
Chapman Il the goods and eiIsrls should meet
and pay the same, Or in propUrton the said
property and demands should lie to the amount
due lrcm them.
There was also further assignment al the saur
time hy Morse and Chnpnlh To S.ulth, of their
leGSe OF the store tor un uncXpircd term uf three
years. Smith touk possession of the properly unl
der the assignments aud II appeared HAT one OBJ
lecl OF the assignments was, 10 secure him for his
liabilities rs surety on the notes TO the bank OF
Montpelier and Guaianor Hastings, and for his
liability oil the bond given by hun Ia Bake. Il
also appeared thai Alurse aud Chapman -sln ned
their debts At $500 but there was no other evi-
deuce rs to the amount.
PRENTiss J. Al the hearing Of this case, had
very strong opinion upon it, mud ordinarily
should have pronounced nm immediate decision !;
but as the case was of good deal of magni-
tude, aud of great interest, especially to one OF the
individuals concerned in the transaction, thought
il my duty on that aCroun more than on account
OF any real tliruy in the case, To examine fully.
| ha,e taken pains to 20 through all the cases hay
ing any hearing upon the subject, have read them
auentvely aud thoroughly, aud the result has been
full confirmation of The opinion al first enter
tanned.
The general question is, whether an act OF bank
ruptcy has been committed? What is an act OF
bankruptcy, is to be ascertaiuei from the first
uon OF the bankrupt law. That section enacts, that
i'if, - L,n, t,,,,7 J.; ill.,. c,I,a,,;,.,,, wi,
ba sL,u Jnn,r, 'r.n, ,L. SIT, ~ ,yl;,h no /; an
ibnIi,,n, ,.;,h in ,n, ., In,rn,,h IL .rel,,or.
. WI, ho shoii coconl Lin,..lr ,o ,,,,ni h;,,,,
nrr.s,ad 2 When Lr Shall wiIl;nsv mr. trnn,lu,
ent!y procure himself to he arrested, or his goods
disrrniued. St mustered or taken IN exerut.on. A
When he slail remove iis goods. chn,Isls .Sd ef
i.cts or courrl then, to ureyen, their H. inn levi
ed upon or taken in execu ION. or ly oher pro
rcss Nh.n l.. shnIl max, nm, trouduIeut
co,vevnure nssgun,put sale u,n or ,ihnr trans
fer of his lands ,enemcuis goods and cbntels
creli,s mr. cv,dpncps ri d,ld
For ,uv of The cnusc. inns enu,ner,,oJ md
sprcitird, a trader NAV he proceeded against and
dpcreed a huukrupt But he last cause m entibne,I
ia rim ouIv one nuulicabe 10 This case becausc il
is the onlv one assigned or aedreJ in The petition:
mud The partculnr question is was the assipn-
menL which is relied upon as an mel of
bnnkruptcy fraudulent assignment with
in The intent and meaning of the act? A
couyeyance or assignment which is fraudulent at
common law is undoubtedly within The meaning
of the act and so is every conveyance or assign.
ment which con,ravenes the provisions at.d objects
of the act though good at common law The net
for instance, prohibits ali preferences, and, with
The execution of certain speci6ed uriorties liens
and securities. declares That the property Of the
bankrupt shall be distributed pro rata, among his
creditors. Any conveyance or assignment, there
fore, which is intended and operates To defeat This
provision, though ever 50 fair ms between the par
lies to it, and entirely unimpeachubIc on gene
raj principles of law is IA Fraudulent CONVEYANCE
and consequently an act OF bankruptcy.
The clause, declaring what conveyances shall
constitute acts of bankruptcy, is very broad aud
general in its terms, the Language used being as
we have SEEM "any fraudulent conveyance, as
sgnmeur, sale, gilt or other transfer" OF property
The proysion is substantially the same a, The pro-
vision on the same subject in the English bank
rupt act of JAG L., now contained in the console
dated act OF Geo. A aud it is evident enough
rha, in framing and passing the act of Congress
reference was had to the English statutes and the
English decisions upon them. and that it was
meant that the act OF Congress should be subject
10 The same construction