The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-11-11
Interesting Decision in Bankruptcy.

interesting DcCSlOu III ooAhA ol>'SJ'
Judge BLArcHroRD, Of New York. rem
dered an interesting decision in bankruptcy
last Friday. In the case Of GEORGE BIRD
GR1ssELL & Co., voluntary bankrupts, BLAKE
BRoruERs g. Co. filed a petition setting forth
that they had lent to said GRlNSELL large
amount of money payable on demand upon
col!aterals deposited with them by GEISSELL
& Co., and asking permission of the bank
rupt court to sell said collatcrals so hypothe-
oted and pay themselves out of the pro-
ceeds. or SO many of said collateralS as 1t
would be necessary to sell in order to sat
isfy the debt due them. Indeed, they set
forth that they hid already sold some OF
the shares. And inasmuch as tho bankrupt
law sets aside all conycyanoes, &c, IN bad
faith or 10 defra,id creditors, made not more
than four months before the party files his
petition in bankruptcy, Messrs. BLAKE Bro
ruRns d Co. also set forth in their petition
that they did not at the time of the lending OF
any orthis money know, or suspect. or believe,
and had not been informed, that the borrow
ing firm. or either Of its members, Wero or
was insolvcnt. or in contemplation OF lnsoi-
vency, or that bankruptcy proceedings were
contemplated, or could properly be had by
or against them; that they, during all OF
said times, and especially when the loans
were negotiated, were in good standing and
credit; that the petitioners supposed, ana
had good reason to suppose, that GRINNKLL
8 Co. were entirely solvent and free from
embarrassment; that the first meeting OF the
creditors will not be held until the l4th of
November, 1878; that the petitioners have
duly proved the said Indebtedness as debt
with security, az above described, against
the estate of the bankrupts. Messrs. BLAKE
BRorurns g. Co. also claimed that if the Sc.
curities pledged as collaterals should fail to
satisfy the debt due them they would have
a right to participate with the other credi-
tors OF Messrs. GR1SNELL & Co. in the pro-
ceeds of the sale of the assets Of the bank
rupts.
To the great satisfaction Of the petitioners,
as we'll as of the mercantile and business
community generally, Judge BLAroHFoRD
directed an order to be entered that the
petitioners may, notwithstanding the PEN
dency Of proceedings in his court, "sell in
any manner authorized by the terms of their
contracts with the bankrupts and by the laws
Of the State of New York all the stocks and
bonds remaining in their hands mentioned
In their petition, and may use and dispose
of the proceeds of the stocks and bonds so
sold as If they were their own, subject, how
ever, TO and reserving the right of his court
to ascertain and liquidate the liens and spe-
ciflc claims of the petitioners on said securi-
ties or the proceeds thereof, and to marshal
and dispose of such proceeds; but the order
must provide that it is not to be construed
as direction or as affecting any Of the rights
of any assignee in bankruptcy herein, and
that it is made on condition that the petit
TONERS file in this court, within two days
after the future sale of any of said securi-
ties, sworn statement Of the particulars of
such SALE"
A wise decision.