The New York herald., 1871-02-09
vNTFD STATES DISTRICT COUNTY, BAHNsUrTCY.

Important Quession--ActiOus "a F0reclose
MortrnEs ON Bankrupt Propery-An
Assignee Leaniss tho Funds of a Bunk
rapt's Estate Unsecured Notes Without
the Authority Of the Court eeisser's Ger
tificate and Judge BlatchforC's Decision.
In the Natter OF George SANFORD Price, Bdnk-
r,tpt--7his case Is undergoing examina ion before
Register Little, who has submitted to Judge Batch
ford certificate setting forth the following facts,
and asking his Honor's decision thereon:--
On The sth OF November. 1859, Stewart Young was
appointed assignee OF Prices estate and an assign
nent % the bankrupts estate was made To him. The
estate consisted both OF real AMI personal property
unercunbered by mortgages. soon after the as
sold ali the assets Of the estate for about STA UO0
without any order from the Court, but has mol yet
delivered any deed Of CONVEYANCE TO the purchaser
oi the real estate. Tne assignee has received con-
Siderable portion oil the price, and suli retains
IL IN his possession. contrary 10 the rules OF the
court since me proceedings Of the sale reached the
hands Of the assignee lie allowed action 10 be
commenced IN The Supreme Court OF the stare OF
New York 10 foreclo mortgage past due on the
real estate OF the bankrupt which, at he time OF the
sal ne agreed TO pay out OF the proceeds thereof.
Judgment Was taken by detaut, and the property
was advertised for sale. The person who holds this
mortgage, before the action was brought and be-
lore the Judgment mad been obtained, onered
than the principal secured ihereoy but this CON-
promise was refused. The assignee also suffered
hun IN The same court TO recover the amount OF a
debt due nom the bankrupt, secured by chattel
mortgage on MS personal property, which had
been sold by the assignee part oil the Of the
estate. Before tins action was brought lnd before
judgment was Obtained, the holder OF this mortgage
also made All orer TO compromise for a sum less
than that secured by the mortgage. This ofer
however. was refused. The assignee has also
loaned the funds o; tue estate ndv dual notes.
without security and without authority from the
Court AT Six per cent per amman and paid interest,
out OF the estate at the rate Of per cent per
annuM.
The Registers certificate further states that the
assignee refuses 10 file or make any account what.
ever, as required by the rules OF the court.
A SLAP AT THE AssIGNEE--TIE JUDGE ISSUES AN
INJUNCTION.
Judge Blatchford, rendering his decision upon rne
above facts, says
The Register VIII forthwith have issued out of
this court and served on the proper parries
junction restraining the sale before named, adver.
tlsed for February IL, 1871. lie Will also cause to be
served on the assignee a copy OF the foregoing
paper, with notice requiring SAID assignee TO show
cause before this court, Oh Saturday, February IL
instant. at eleven O'clock A. NJ, why nc should not
be removed from his trust The Register Will en-
pl0y on behalf OF the estate proper nse to
represent the estate and The creditors in the MATER
In the case or Flatman d co. vs. Theodore IL
Vetter!eln ana Bernard Vetterlein, as reported In
the HERALD OF Yesterday, the latter deteudanrs
name should have been written Bernard Theodore
Vetterein, ana not Bernard yetsereln.