The New York herald., 1868-06-25
NEW YORK CITY.
UNITED STATES CIRCUIT csusI-x BANKRUPTCY on APPEAL.
Before Judge Nelson.

Before Judge Nelson.
Arguments In appeal having been heard in the
Oircut Court in the two subjoned cases, Judge Mel
Hon delivered judgment In each case as follows
Sonn Sedo,ctok Asstonee, DO, %. James x. Place
s y ss 4 az ~: Ss y tsiass sSs =
session certain properly and SssetS which aes
nd which have become vested In him under and bt
virtue Of the proceedngs IN bankruptcy. me case
" int d tSs asSs being
Jne soth November, 1851, and several suis
having been instituted gl against them ,sn,n Mitn
assets among ali the creditors made an assignment
0 an their properly, real and personal 70 the de.
sndaa Ia s 20 06 r s ts nd 5 short
OF paying all their debts It should be distributed
equally among all Of the creditors pro ,at0. the
virtue OF the statute of the State OF New York rea
tive general assignments by nsolvent debtors i0r
as benefit Of their cea sdo the ty aS
New York. and within the time prescribed the as
signors made and fled under oath full and COM
plete inventory OF all their estates real and personal
and OF all their debts and liabilities. The assets
were large and the assgnees were required 10 enter
into bonds with good and sufficient security for the
faithful discharge OF their trust TO the amount OF
$500 900. The assignees are engaged In the execu-
tion of their trust and have already In deposit IN
the United States Trust Company some $45,000
awaiting distribution among the creditors. At the
time OF this assignment the nsOlvent debtors had no
intention or expectation Of applying for the benefit
Ior the belief that any such intention existed All
intention to defraud reditors OF to prevent the pro-
perty OF the debtor coming to an assignee In bank
rupcy is denied by parties and there is proof in
the case to the contrary The insolvent debtors not
being able to make settlement with their creditors,
and apprehendngt the provisions OF the bankrupt act
might cease relative to voluntary applications, unless
by the assent of the creditors or the payment OF fifty
ing, by petitions, for the benefit of the act, and
were adjudged bankrupts as copartners on the
7th OF that month. The motion upon this
under the State law be set aside and the
asslgnees render an account to the complainant as
assignee IN bankruptcy and that they be restrained
from any further execution OF the trust. Assuming
the assignment in question to be untainted with
fraud either against creditors or against the Bank
rupt act which is the present position Of the case
we find nothing in the provision OF the law which
would authorize us to take this property out OF the
it over to the assignee in bankruptcy, and must
therefore, deny the motion for preliminary injunc-
ton. Motion denied.
John Sedg,otok, Assignee, ps WtuiaHs Mfnck ana
Charles B. Bostlrtck-The bill In this case is filed by
an assignee in bankruptcy to compel q receiver in
creditors credit, bills against the BANKRUPT appointed
liver up the property In his hands as receiver. The
case is ths:-On the 9th Of January 1857, Andrew
ham Minck, giving preferences among his creditors
Cred;tors Mr bills were ed against Beser the debtor
one Of the present defendants, was appointed re-
Ceiver; and on the 10th Of March, 1858, ne COM
menced q suit In the Common Pleas of the city and
county OF New York against the debtor and assignee
to recover possession Of the assets; and such pro-
ceedfngs were had that on the 9th Of December
following judgment was rendered In favor OF the
receiver, adjudgng the assignment fraudulent and
void against creditors. From this Judgment Minck,
where the case & sti pending. INT In January, isss,
Beiser the debtor was adjudged bankrupt, and
the complainant appointed the assignee, who now
seeks TO obtain possession Of the assets Of the estate
the right which had passed to Bostwick the receiver
these bills according to the law Of New York. gave
hen upon the assets Of the debtor in behalf OF the
Judgment creditors and the Receiver, representing
their interests, has, seems, been diligently engaged
In endeavoring to reduce them to possession and
apply them to the payment Of the Judgments. It Is
dcult to see what right exists in the assignee In
bankruptcy to this property thus devoted by the Law
to the payment Of the debts of these judgment
creditors some ten years before any right at
tached In bankruptcy. The Judgment creditors have
ready In the litigation and have succeeded In the
lower courts In setting aside the assignment raudu
lent, and thereby giving effect to their judgments
against the property. Whether they will derive any
on the decision OF the appellate court. II seems to
US that they entitled at least to this chance, and
that the bankrupts assignee neither entitled to t
hmself nor In q position to deprive them Of It. The
question involving the right to this property In the
State court where II belongs, and the decision Of
afirmance Of the Judgment OF the court below, the
property will be applied to the satisfaction OF the
judgments the creditors bills; II In favor Of the
validity OF the assignment will take the direction
The right TO this property attached long before the
assignee In bankruptcy appeared and before even
The passage OF this Bankrupt law. The motion t.
dissolve The Injunction granted.