The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-14
BROOKLYN COUE 10.
UNITED STATES DISTRICT COURT osracI

UNITED STATES DISTRICT C0uRI-SA aSIhCI.
Important Deci-ion In BaHk,r ttst Alleged
Fraudulent Jndgrnfgfs
Before judge Beneacl
babe Mater o. fronets Scan.g, Bu This wrs
motion in behalf OF judgment G. rns ~ a 6nk-
rup' 20 dssoIve iuunctoo heretofore sod by tAs
court restraining hin from pTocecdina su u2der an
execution certain personal properly e, prior 10
the alng Of the petition in barkraps lae motion
was opposed by the bankrupt upon sNaai that Inc
judgment unaer which the Judgment seeks 10
proceed was obhinea m fraud Of t4e l4Nt &c. and
by the assignee in bankruptcy, upon lDe 81. tnat lie
title OF the property in question hal ~ him AZ
an officer OF the cour and person cae permitted
10 lsposs of or Interfere wnh III ex,ep Fe inc order
OF the Bankrupt Court, TO which tns ree lad been
transferred by operation OF lar. ia u.sts Ia judge
Benedict says
The facts attending this Judgment atr 4,.y spread
out In the papers before me- anc ara 'srs IN their
character, that can without inJust use OF the
question to the validity oil tho lsNt on the
affdayits alone Upon that question a sadiy
hold IN favor OF the bankrupt II Co. ?, as ~
no means approve OF tho ma0ner n ra Judgment
oha,ncd, but do not see how "a n can 10
held fraudulent upon the facts. II wEs ''h q n Inc
regular course 0f Judicial proceedings ~ adverse
~ TO the debtor aud without cOlasoe a rNi entered
for an amoaut admitted TO be jus ana inis
entry was mads not WITH the assent - prolor nu.
in spite OF him. II " in law valid lt i obtained
without fraud or COLLISION, ana can ~ Yfvpsf aense
BIO said TO have been preferred b. "a aaNspt WIN
view to give preference This bon- lucSmens
creditor, by his levy, made PRIOR 70 lliig OF tis
bankrupt petition acquired a security deot IN tbe
propcr.y levied 90. The next auesii wneti.cr
such security Is nvalidated By the lFt Nh ns OF toe
Bankrupt act; aud upon this qGssfisa use hereso-
fore had occasion TO express an oplaia te see no
reason modify. II seems TO me ths ! security
Is preserved and entitled TO DO rrosc son general
principles OF law, aud tina general
scope OF the Bankrupt act ms csl ti,at such
the Intention OF the fenHT of the
act. Parker Muggrdge. Story, ts The re-
naming question, then. Is as 20 the ~ In winch
this right OF the judgment creditor Hbg PROJECTED
Two methods are open, ny either OF " ia debl VIII
he secured one 10 10 allow HIM 10 ptgiEi Q sell tne
property at sberifr's sale, in which aiidav is
show, there will be little snfld4ft4g tue DINER
creditors: the other 10 direct the ASST bankrupt
cy 10 take possession OF ami sell lie eriy al Iri-
waite sale, in which case as appears the aii,a
yits, be realized not only spacra 10 pay he
Judgment but to leave considerable cuD pr the other
creditors. As between these two Helhois upon
IL 10 The duty OF the Bankrupt O. ~ charged
as IL with the interest OF all the pre- ont
the sacrifice Of this property by sner sa and d
sale by the assignee. provided The ~ or SO TO do
has been conferred BY the act. a dsci Oh on this
question OF the power Of the court the premises 70
rendered necessary in this case. in hc power
Is conceded TO exist by the Judgment cssaor and no
objection is made q disposal or property by the
assignee inst cad OF the sheriff nrsta therefore,,
the discussion OF that point until at rise where
IL Is urged, with The remark tha gch g or seems
necessary to a proper admius-Ia. ~ ene Ennk-
ruptcv Law. and that IL would saegn e. no fairy
the assets Of the bankrupt TO ascer and adate AL
liens other specific claims thereon 10 adjust priori
and marshal and dispose OF the different funds aud
assets the rights of all persons and the
The 10 dissolve the injunction VIII therefore 10
denied, and entered directing tho assignee 10
possession the property lc 81 upon and sell the
without delay. and 10 the be adyan Win ND
eriy 10 tho Judgment creditors Immediately upon such
sale 10 apply Tor order dir.ctipg the mayhem: OF
their judg nent out Of the proceeds Of such sale.