Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1869-05-13
United stasss Court.
LANGLEY VS.. PERRY-N CIRCUIT coURr-BEFoR
Mr.. JUsTICE swAYNE.

AR. JuSftCE SWAYNE-
This was q bill in equity, filed by Langley
against Perry. to revise and reverse an adjudica-
tion OF bankruptcy. by the District Court, on the
petition Of Perry against Langley The bill set
out the proceedings in the District Court. The
Defendant, Perry, demurred.
Langley was resident of Gallia County, Ohio.
Among other creditors he owed Perry who
brought suit against him, and recovered a judg-
ment at term of the Court commencing on May
81 1861
On the s5th of May, 1857, Langley, being in
solvent. made general assignment of all his
property, II trust for all his creditors The as
signees accepted the trust. and. on the 18th Of
May. 1861, died the deed in the Probate Court of
Gaiiia County. under the Statutes OF Ohio, and
proceeded to administer the trust.
ON the Ilth or July lsS. Perry fled petition
forth the assignment. and claiming that it was
made with intent to hinder and delay him in the
collection OF his debt; and also with intent, by
such disposition, to defeat and delay the opera
tion of the bankrupt Acc, and was, therefore an
act of bankruptcy. Langley answered, denying
the intent charged. The District Court held the
assignment an act OF bankruptcy, and declared
Langley bankrupt. The opinion of the Judge
is reported in the Seventh American Law Regis
ter, n. s.. 7. 429.
The case having been argued at former term,
was now decided by Judge Swayne, in a very
able opinion, in which ne held:
l. That the Circuit Court, under the second
section of the Bankrupt Act, had jurisdiction in
this manner to revise and correct and reverse the
rulings and Judgment OF the Di5trict Court IN
proceedings in bankruptcy.
Q That where creditor is about to recover
Judgment against his debtor, in Ohio, and the
debtor makes a general assignment of all his
property for the benefit of all his creditors be-
fore the Judgment is rendered, such conveyance
is not necessarily a conveyance with intent to
delay. defraud or hinder creditors.
g. And where such an assignment Is made nn-
der ike circumstan with intent TO secure an
equal distribution of all the debtors property
among all his creditors, it is not necessarily
tpfa faat or
delay the operation of the Bankrupt Act
g. To make such an assignment an act of bank
ruptcy, it must be made with intent to delay, de-
fraud or hinder creditors within the meaning OF
the Statute of 13 Elizabeth, or with intent to de-
feat or delay the operation of the Bankrupt Act.
IL becomes a question of fact The innocence or
guilt of the act depends on the mind of him who
did it. and it is not fraud within the meaning of
the bankrupt law. unless iswas meant 70 DC so-
Here the proof submitted in the case is clear that
the assignment was az honest act, and was not
intended either to defraud creditors or defeat or
delay the operation of the Bankrupt Act.
The demurrer is overruled; Judgment Of the
District Court reversed, and the cause remanded
to the District Court
O. d. Coffin, for Langley, Nash & Lincoln Tor
Perry.
Swayne. Crawford fled petition against Far
rim in the District Court, setting forth that Far
rim, being insOlvent, had committed an act OF
all his property TO John X Green. in trust for all
his creditors. Farrin admitted the assignment,
but denied all fraud. The District Court de-
clared him a bankrupt, holding that the assign
ment though honestly made, was in law frauGu-
lent Farrin 1led this bill TO revise and reverse
that judgment, and obtained an injunction en-
Joining all proceedings in the District Court
Crawford now moved to dissolve the injunction.
Judge Swayne Oyerruled the motion. holding
that assignment by an insolveEt debtor. made
since the Bankrupt Act went into operation, to
trustee in trust for all his creditors, was not,
necessarily, an act of bankruptcy.
Bradstreet Il French for the motion; Coffin for
Farriu