Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1844-11-22
DISTRICT COURT OF THE UNITED STATES
VERMONT DISTRICT,
TCpM Iett TN n NEpJrprry

This was petition filed by Ephraim Chase, who
had been duly declared bankrupt, for discharge.
The material facts are stated in the opinion deliv-
cred by the court.
PRENTIss, J. This case, without going into un-
necessary details, is shortly this. The bankrupt,
OH the LIST of February 1912, as appears from his
schedule, was deeply insolvent, being indebted TO
various creditors to the amount Of four thousand
dollars or more. Among the creditors was the
firm Of a. r. Vail a. Co., to whom the bankrupt
was indebted in large sum. In the afternoon of
the LIST of February, the bankrupt confessed a
judgment to A. r. Vail & Co. for the sum of
1924 n, embracing the amount of certain notes
given originally to them and two or three notes eX-
ecuted to other persons andindorsel TO them. EX-
ecution was Immediately taken out on the iudg-
ment, and in the evening of the same day levied
on all the rty of the bankrupt liable to at
tachment or execution The property was sold on
the execution, and brought $ll24,7l, besides the
costs of levy and sale.
1t is to be borne in mind that the confession of
judgment by the bankrupt without any previ-
GUS attachment, and for sum sufficient to cover
all his property, with the power to issue immediate
execution. Execution was Immediately issued,
and all his property, except household furniture and
other property exempt from attachment, immedT
ately taken upon it. From the manner OF the
transaction, the suddenness and haste with which
the proceedings were begun and carried through,
the transaction, from the very statement Of it. con-
nected with the fact of the utter insolvency of the
bankrupt, is liable to very strong suspicion.
But let us see how the stands on the testi
mony; for it is proof and not suspicion without
proof, that is to decide it. There is reason to
doubt, that the debt Of A. r. Vail g. Co. was a
bona fde debt; and it is true that Aaron X. Vail,
one of the company, says he called on the bank
rupt for security, and that the judgment was con-
fessed on his request means OF saving COST
This testimony might be material, if the judgment
had been for an amount covering only part
OF the bankrupts property but the Judgment
being for an amount sufficient to absorb the
whole of his property, and he being necessarily
conscious that it must take the whole to satisfy it,
it is ihmaterial whether it given on the request
and at the instance Of the creditors or not. But
admitting it to be material, and that the request
was accompanied with such degree of urgency
and importantly on the part OF the creditors, as
would, under ordinary circumstances, rcpel the
presumption of the confession being voluntary, YET
the question is, whether it really made in con-
sequence Of that importantly, or with view, en-
tertained and acted upon altogether independent
OF it, of defeating the rights OF other creditors
This is question Of intention, and the intention
to be collected from all the circumstances OF the
case. if they clearly indicate all intention on the
part of the bankrupt to give preference, or t.
have all his property put beyond the reach of hi:
other creditors by means of the Judgment, the re-
quest or importantly of the creditors can avail
nothing.
We have already stated the manner Of the trans
action now let us look to some other crcumstan
ces which attended it. Besides there appearing t
be no unwngness to make the confession, but {
very ready acquiescence and compliance on the
part of the bankrupt, it is evident that he knew a
the time of the confession that the execution would
be levied the same evening. He told Harrison
Ballard, in the evening, before the officer came
that he wanted to pay him. as he expected hi
creditors would break upon, him; and he accord
ingly forthwith turned out to Ballard cow, and a
tie same time tnrned out TO his brother forty bush
els of corn in the ear After the officer had pr
rived, he tcld Marcus Bartlett tina. he had expected
him, and had tried to give Bartlett hint OF it be
fore. And Aaron r. Vail, one Of the creditors
says he thinks the bankrupt might have understoo
that the execution was to be levied the same eve
ming after the confession of the judgment.
But further The bankrupt told, William ID. Has
kins who went to see that the officer did not taxi
some grain the bankrupt had turned out to him
that the creditors would not take anything he d
not wish they should take. lie also told Baar
at the time he turned out the COW to him, that tn
creditors would not take any property which wa
turned out TO him or his BROTHER though it rename
there.
The testimony, thus far, gives the transaction tn
appearance, at least, Of being very amicable one
for il shews that the bankrupt supposed, and acte
under the belief, that there was very good under