The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-21
TIL E COU r T S.
a Decision in Bankruptcy Of Snug
gling-A "Reminiscences Of the Late war-Ths
viele Divorce suit-Application for
Writ of Error-Decisions- Bust
ness in the General Sessions.
UNITED STATES DISTRICT c6UaI-M BANKRUPTCY.
A Decision in Eauiiy-AneRed Fraud Of
Creditors,

Creditors.
Ed,ooYd Benjd,afn Us. Benjamin. A. Sfraonson and
O,hers-In this case Judge Blatchford has rendered
the following decision" Independently OF the ALE
cations in the bill as to conspiracy between
Simonson, o'Connor and Marsh, IN regard to the
notes for sso,ooo there are sufficient allegations In
the bill that the bankrupts suffered their property
10 be taken on the Judgment recovered
by Simonscn and OConnor respectively,
with view 10 prefer them and to pre-
vent such property from coming to the assignee
IN bankruptcy, and nom being Distributed under the
Bankruptcy act and 10 defeat the object OF said act,
and to impair. hinder, impede and delay It's opera.
The bank1upts we're nsolvent aud acting In contenl-
platoon OF insolvency al the time, and that Smonson
believe AT TIE time that the bankrupis were insol-
vent and acting in contemplation OF insolvency,
and were suffering the secures and sales oil the
property 70 be made with such view. Such allega-
lions are adequate, II sustained by the proof,
obtain II the renef asked in this suit under the
thirty 9th and trtyninrh sections OF the act The
proof fully sustans such allegations The inso-
vency OF the banKrupts and their intent TO prefer
SlmC nson and . Conner are not seriously ques-
toned. As TO o'Connor, the proof brings nome 10
him personally knowledge OF such facts prior to the
18th OF April 1862 in regard to the pecuniary and
business condition OF the bankrupts as TO lead 10
the conclusion that he had on that day, wnicn was
the day OF the levy under each execution reasOna-
bic cause to believe That the oankrupts were insol-
vent ana shat fraud TIE act was intended by
them in sunernG him to procure \ preference by
MS levy. The same conclusion Is proved as 81
monson personally. In addition to that, Simonson
is charged with the knowledge possessed by his at
torney, which was ample as To all the particulars
masking up the fraudulent preference
Inc bill Is not open 10 the objection OF mulfifari
business Bills OF TINS kind are constantly sustained
multiplicity OF suits and suppress litigation.
There Is single fund, the proceeds or the bank
rupts' property IN the hands OF the Sheriff, seized
under liens which were simultaneous, and the AS
Bgnee In bankruptcy claims the entire fund. The
tact that the alleged fraudulent liens which the bill
seeks to remove are held by different parties does
The firm exhibits introduced TO show what the at
torney tor Simonson had stated on previous Occa
sions were, | think, competent evidence,
such attorney being Afforded at the time an
desired In regard TO his former statements. The
object was to make Simonson responsible for the
knowledge possessed by his agent and attorney,
and IN that view IL was as competent-the agency
and a,torneyship having been first establlsned-tO
show by the attorneys declarations what knowledge
he possessed as Ii was To show by Slmonsons de-
claratlons what knowledge he tSimunson) possessed.
The line OF testimony Is not governed by the rules
the fact that attorney had been examined this
case as witness for the palntn before the exhibits
were introduced is OF no consequence, except so far
as such testimony OF the attorney Is to be consd-
cred IN explanation of any discrepancy that may be
Insisted on between his present testimony and his
former statements.
The plaintiff is entitled to a decree setting aside
the laws and liens under the executions as void as
against him. and directing the Sheriff to account
TO him for the proceeds OF the property less his fees
and directing Simonson and O'Connor to account to
him for the proceeds OF the property including such
iee-, with Interest from the commencement OF the
suit, any sum which the Sherln shall pay under the
decree to be credited on the liability or Smonson
The plainn IL also entitled 10 costs against simon
son ana O'Connor.