The Portland daily press., 1869-07-28
DAILY PRESS.
3 PORTLAND. = "a
Wednesday Morning, July 28, 1869.
Z Republican Nominations.
b. g-.ss FOR GOyERsORi bsfn4ee
JOSHUA u. CHAMBERLAIN,
A Deci..en in Rankrnp,cy.
OF BRUNSWICK. (

Decisson in Bankruptcy.
District Court June Term 1862 John Q.
: iScannaon Assignee or Chadbourne C NoaceH
y ss. Thos. II. Cole & Edoard H G Hooper. 81
Fox J-rhisis bill in equity, b ought by
the ass gnee of the baakrupts, 10 SIT aside a
mortgage OF heir s ock in trade, hxtnre>,
tools, baggage wagon and pnng, made by them
to the res pondents on the II b OF June 1868,
to secure the payment OF their notes OF thai
date, one given to Cole tor $1272 90 and one
with interest. ~ r.
: Chadbonrne & NOVEL; were furniture dealers
at Biddetord, and were adjudged baukrupts
onl the petition of one of their creditors, filed
onl the 11th OF July 1868. THIS mortgage COW
cred all the firm estate excepting one hoi &c.
Which was not subject to attachment by the
laws OF this s ate, aud as q part of the same
transaction, Chadbanrne at the same time
mortgaged to the Respondents all his real es-
tate, to secure the payment of these notes.
NOVEL; is not shown to havs had any seper-
ate estate. The yalue OF the property in q1es-
ton does not definitely appear. All the evi-
dence on this point is from Chadbourne, who
states, that a few days after the execution OF
the mortgage they took an account OF stock,
and that their assets, including all demands
due the finn, were $6687. A44easA s-
Itiis claimed that this mortgage OF the part
nership estate was in fraud of the 35th Sec OF,
the examinations Of Chadbourne and Of the
respondents have been read in evidence by
the com plaiuantng Mifsi 4Hf IL .44er 4 t.f = n
Chad bourne testifes: "The firm commenc-
ed business in 1854, each pa tner contributing
$1,000 as capital. June 16 h I informed Cole
that the tirm had some paper IN the bank that
was overdue, and they wanted to raise money
to pay it, and asked his advice what to do.
Cole inquired what we wanted to do, and
told him we thought of mortga ing our $ ock
tolraise some mohey. Cole said, he would see
Hooper and Thought he could arrange it. iAi-
ter thai I went with Cole to Hooper. Cole
said, IT you will give as mortgage on your
stock OF gouds and on your real estate, we Will
ASSIST you The y asked how much i wanted
to raise. I told them about $4,000. They asked
for what we wanted it; told them TO pay ST.
$50 10 1st Nationaf bank Of BIddeford, part %
which was uverdae and had HooPer's nafne on
it-about $3.50 then overdue, aud $500 was
falling due; that there was $300, with Hoopsr,s
name on it, at the 1st NitionalG Bank of Sacp;
that we wanted $500 Of it to pay my note TO
Gardner Libby, ,oawhich Cole and A Jones
were sureties, and which was overdne; that
there was note at the savings bank, given by
NOVEL;, on which Cole and 1 were suretles,
and that we owed Cole $3.50 tor borrowed
money. think we told CUie we were liable
to be called upon for these liabilities at any
time, and that as we were goin1 to mortgage
our stock to raise some money, we might as
well get enough to pay this, so that we might
go along in our business. Cole said. if We
would give mortgage of the stock and real
estate, as we had proposed, they would furnish
US with money TO pay our liabilities. Ihere
was some conversation at the interview wnen'
the papers were made. in rotation 10 our other
liabilities. They iDqu red how much we owe d
il Boston. replied that my partner told me
that we owed about $500. l may have sara
$500 or 81 ,O0O.i I think they asked me if
knew how much we owed and that told them
4 did not know but would ascertain. Hooper
gave up the notes to me that were in the bank
$3.50, and $500 in money. Cole paid noteto
Ct. Libby and interest, $522 and now holds iE,
and also the mole, in the savings bank, for $500
against NOVEL; as principal aud Cole and my-
sS Sr s5o 81 sSd to cosg gxs ss 5ot
which were secured by both mortgages. That
note to Cole was to pay the two notes ABOVE
mentioned, and our indebtedness OF $3.50 for
borrowed money. The defendants did mol
know, to my knowledge, that we were unable
to pay our liabilities as tney became due, but
they did know the notes in the, bank were
overdue and unpaid. The firm did not know
that they were unable to meet their, LA
bilities as they, fell due. We made the mor!-
were due, and about coming due; did not give
\ them this mortgage to SECURE y iprrtereaere
The firm was then insolyent. & On cross exam
eihation he testifies: "We did not know and
had no reason to believe we were insolventl al
this time. We did not contemplats bank
rnptcy or insolvency, or expect to stop our
BUSINESS; did not know our condition untilwe
took aeceun ut Of s.VcK aitegwards. Ne .hae
two extensions from T. NJ Ii Holm-s; 20 Go. o.
,oeo ~ rem crs,rt
hooo' ,''iu e'oiai e o'''o''s ~
From schedule, annexed to Chadbourue's
d.,au sIn 900 ~. u, ~. o.1fnd d, his LIST tI,
yse. %IVooo, ~ -, w .n nos - ~ srinrs, h.ns
These were, 10 be sIire, Individual liabilities
which, if added to this amount, would make
their JOINT and several llabiisles oyer $l1 900
ssthat ;fsnv narson heing ,ns6lysnt or Il, cor-
,.s,iat;J as ,s.,vs az, trisb ta,, ,o,,Ihs
be,orr the a, NO sof, the petitloa. by or
agalnst nln; with view & 70 give up prelersncs
M, f' ~ is.n mar s,,,v l;ab;;, - in
fsa'uss n's " @ raaEss Is,,v nav ,neor
niadca assianmant transisr or co1veva1ee q,
sny nart q, his nronertv. either directI; or in
.yadt,.. par' ansoint.p orconaitiona1Iv tbe her
sn evt = ! oh mo N or co,,vavance
Sc = having reasonable !. callse to believe
sne, nerson is iusolyept aud ihat such con-
seya Il made n frard of fhe act the
same snail be void and the assigueei NAV re-
cover the property or the value ofit, from the
and if sneh sale &c. Is not ! ads il
tha us.,a1 and ordinary course Of business OF
the del,or. that fact shall be prina fdcie evil
deuoe of, fraud.'', ,lstsye,,3 asa sH basistal
To ,invalidate the transfer. it must appear
IN n~contemplatioD Of insolvericy,.I and that he
intended 10 give a ,preferuncaI foa creditor, or
narson having a claim AGAINST him. or 10 one
who is under q liability for him
Tn this case Cbadbotlrne admits the firm wa :
been,v iusolyept at the siue the mort tgage was
eiyep. but he AYERS that they were not aware
That such was their condition until Afterwards
wIan & I, Examination was made al to their as
sa1s and liabilities md 1t appeared that they
ronia not nav more than 20 or % per, cent
fhadhourne did not kee the books and may,
II ~ thareiore ~ have been So conyersant will.
Thar real Condition, as his copartner, whose
fastimanv is MOI bafore b1eg bbt who. Ifannos
bnt belieye. was well aware of The Insolvency,
~ .hs Arm = y N
rn tba r;nation If tnestibns in bank
,untcv IL mnst he remembered that "insol1
gapc1 has nsed, in the gbaukrnpt ACT. does NOT
mean an Absolute inability to paw one's ). debts
=, t;,s,a rsn ssttIorsn and wsnd
,,S as iii = s,sasrs coy,ca rns i,nt a trass+
nav R ba said to he in ,insoIyeut circu instances
mn IL he ;s moi in condition 10 nav his debts,
y. AZ ard;norv c,.nrse as narsons CARVING IN
tnaSa7 s,,sn aiiv AZ ssfhis daffnitinn hSs 6een
s,hslss iv adonted Inv every si1is,ricf 4;u1o q
IN tI'e con nfrv. hefore whom the onestion has
ar;san sn
Wbat xvas the situation Of this firm on the
" nss w.s The;r ~ sats s,f sverv Wind I'M
nira;yr ~ an Sahts dne to them. was s.litlIe nm
Jar -ee 7on and Chadbonrne was also tbe ow a.
~ ~ r. ~ Scr,astaad and 4 small lot adio;ning
m,,o ~ =; 'iS ~ hS;,;as IN d;v5raiir anS as A.
wave erl in aTrasS If sii C1' Xuote. in the Bid
Ssford hanI of S6oo Rad heen ovr rdne for more
1, =. otor vi, r..ta 81 e5s1 in tha 80
eL "S ha,an oVardre sone d. dsvs and bofb
we're re,ewals Of former no q ami were indorssd
hv Hoonsr one Of the respondeots. The same
bank had two other and similar notes, each for
$3.50, and the Saco bank similar note for
$500, all of which would soon fall due, and
which Chad bourne admits they could not pay,
excepting by p mortgage Of their stock. Chad