The New York herald., 1871-10-28
He CO u r T S.
Bankruptcy cases-Bailing an Alleged Counter
Seissr-Imprsooed Debtors-Lawyers' Fees
aMIEB SHAFTS sypaeM: sousT.

WASHINGTON. Oct. n, 1871.
No. lrI. Hanssibai aud 81. Joseph Railroad Com
panv rs Eben SsoiI-Error to the Circuit Court for
the District Of N,ssouTi.-Tne defendant here
brought suit against the ral road company to re-
cover the value OF certain baggage and personal
property, lost by burning while being carried
their road In December 1890. The plaintifr was an
army surgeon, aud had been stationed, with
his wiie and family, previous to the war.
at Fort Randall. Dakota Territory A
part u the garrison OF the fort, together
with the plaintiff navinx been ordered report for
duty at Ciacinnau arrived to az y, joseph IN the
the cars The plaindn Was accompanied by his
wife aud family. and they had wih them iteir
wearing apparel and household lunture. On Their
arrival ~ H. Joselh the commanding officer noCI-
he'd the railroad company that he required trans
portation Tor tue oiicers ami men. with
tier arms. equipments, baggage aud other
cbaticis. The railroad company reused to make
a a sS ~ S ronns from soe on "a accoamt
along the route; but after the command arrived ut
HannIba the amount Of conpens alton PAYABLE Tor
the Transportation Iurntsh.d ii was asreed III on and
on their arrival a. Cincinnati the amount was paid
by the Unlted stafes The Court below held. upon
an q reed statement OF fac 3 substantially as set
forth above. that tue company liable as COM
mon carrier for the INJURY s stained by the plain
Tin below. II IS inslstei here that there never
was any undertaking 10 carry as alleged. TINT IN
any the property suea ior " ,s private property,
ana therefore not within any obligation 0 the rod
In transporting government stores troops &C.. tnae
the company Is not Eaoe Tor the burning un-
less there was negligence On its part aud ne agreed
statement OF lacs asserts the contrary IL turther
alutained that the remedy oil the defendant mere
was against the government.
No. ~. "a Rogs,s & . Ru,a Error 30 the circnlt
uoh O electment 10 recover possession OF Il lot OF
land situated ~ the CITY Of san Francisco. he
questions are O fact. and the record presents as
error the rulings OF the Court below IN the adElis-
sion oil evidence.
UNITED STATES esTRcT coBaT-N BANKRUPTCY.
Trnder Mny Lawfully DO in the Course OF
lis Bnsincss.
Yesterday Judge Diatchtord rendered decision
In the case Of Charles N. Judson Assignee of the
Eagle Gas Stove Manufacturing Company, bank
rupts, VS.. Gibbons L. Kelly aud others. We give
below tue main portion OF the decision, follows.
The Judge says:-This Is q bill filed under the SIX
months clause OF the thirty-nflh section of the
Bankruptcy act The bankrupts were put into IN
Voluntary bankruptcy by petition filed February
6, 1869. The bill alleges that the 14sh Of Janu
uary, 1869, and within six months before The
hing OF such petition, 'he bankrupts. being then in-
solveat, made an assignment and transfer to the
defendants OF two mortgages on real estate on sta
ten Island. with the bonds accompanying the same
given TO secure $4,000. with interest, the same be-
Ing then the property OF the hankrupts with
10 prevent the same oeing 0istrtuuted under The
bankruptcy act, and to defeat the OOect ol and to
impair, nshder, impede and delay Inc operation and
elect o. SAID ac and that at the Time oi making
sucn assignment aud transfer the dcienlants nal
reasonable cause To believe The banSrnpis 10 ne in-
solvent and that the assignment and transfer was SO
made lrevunt s;,ld pro- erty neng distributed
under the act and 10 cat. &c., the on cct opera
ton and .cct of the act. Tie prayer OF the Oil
and % VOID ana ,1as Iae pasnti may Se deoarea to
be eniicd 10 the pOsscssipn Of the property as as
from the defendants; and thai, necessary. the de-
entlans may be 0ruercd to account Tor property
under oatn 10 the palntln and that II the roperty
u
ictidanis me plaiitn may recover from them the
value 0. SO much rs has been disposed OF.
The TRANSFER Of the mortgages made under
the authority OF aresoiuion passed bS the Boaro OF
Trustees OF the bankrupts. VINO were corporation
authorized Henry d. Blake, wn0 was then the Vice
effect a loan on the mortgages on the best terms
posslDc lOr the interest oil the company. He en-
could obtain Offer ior them large that winch
tue defendants made. He finally sold them TO tho
dclendants Tor $1,000. Tue evidence IS satisfactory
that that was as large cash price as they would
bring. They were payable u eighteen months from
The 18Th OF December lsts one being for 5000 and
tins purchase Sl.0o, the 4th of January. 6D.
The written assignment; Of he bonds and mort
cages was execnteu ana detveret on the 18TH Of
January, 1859. Evea Il be assumed that tile bank
rupts we're tns0ivent, aud tnat the defendants had
on the ath OF January as on Inc 18th OF January,
oo9, yet see no state o facts which would warrant
me ~ the concusion thai on either OF those dates,
the defendants han reasonable cause 10 believe tnat
the transfer was made with u view TO prevent the
pro- erty from being distributed under the Bank
ruptcy act, or 10 defeat It's OUJect impair, &C.,
It's operation ana cnect. or even In the conclusion
taat the transfer was made with sucn view en- the
part the corporation. A.Ler rcierring 10 the
SOUS which induced MIN to come To this conclusion,
the Judge SAYS s..4 s...
..in lnis the corporation had sold the stock,
fixtures and lease oil store IN the SIKH avenue. III
New YORK, atd rccc we'd the mortgages IN payment
therefor. II cannot be said 10 be out OF The usual
aud ordinary course " BUS ness Tor corporation
who's: general business IS the making and setting oil
gas stoves, and winch owns mortgages yet 70 pc
come due and desires 10 realize money thereon Tor
In It's regular Dusincs, TO sell snch mortgages
for their h.ncst cash value 1t results Lnat the Dill
must DC dismissed with c0sfs.h