Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-12-26
Important decisions Of the United States
supreme COurt-AnBOyances OF the
Commissioner Of Agriculture.
Interesting Correspondence between
Senators Hitchcock and EdmOnds
on the Bankrupt Law In
Congress.
The Bonds Of Is58-AmOunt OF Gold in
the Treasury-The Postal Tele-
graph Scheme.
Important Decisions by the Supreme


]
| 10y the bank, and thus, as alleged, fraud
uleptly preferred the bank over their
! other creditors, against the provisions of
/ the bankrupt act, aud the assignee
sought to have the proceeds OF
| the sale on execution applied
I on the claims of all the creditors.
| On these facts the following question
| arose, on which the court divided, and
! these were certified to this court for an
swer: First, whether or not, on intent
! on the part of the firm to suffer their
property to be taken on execution, with
| intent on the part of the firm to suffer
| their property to be taken on execution,
with intent to defeat or delay the opera
| ton of the bankrupt act, can be inferred
I from the facts stated? Second, whether,
under the facts, the bank, in their pro-
! ceeJiDgs, had reasonable cause to be-
! lieve that a fraud on the bankrupt law
was intended by the firm; and, third,
whether, under the circumstances, the
bank obtained, by the execution, Il valid
| lien on the goods, as against the as
signee ia bankruptcy. In their opinion
I the court say that something more than
! the passive non-resistsnce of an insolv-
ent debtor to regular judicial proceed
| ings in which a judgment and
! execution are had when the debt is
due and he is without just defense to the
action, it is necessary to show prefer
ment Of creditor or a defeat or delay
Of the operation of the bankrupt act.
| That the fact that this debtor, under
such circumstances, does not file Pc
titiOn in bankruptcy, is not sufficient
/ evidence Of such preference or desire 70
| defeat the operation of the act. That
! though the judgment creditor in such a
| case may know the insOlvent condition
of the debtor, his levy and seizure are
not void under the circumstances nor
any violation OF the bankrupt law.
/ That a lien thus obtained by him will
not be displeased by subsequent proceed
/ ings in bankruptcy against the debtor,
| though within four months of the filing
of the bill. These propositions require
! the question certified to be answered,
/ the first two in the negative and the
third in the affirmative. This decision
! overrules or largely qualities what was
said of Mr.. Justice Clifford in deliver
/ ing the opinion of the court in Buchan-
an as. Smith at toe last term.
Opinions were read in the Chicago
/ bankrupt insurance cases by Mr.. Justice
! Miller. The principal opinion was in
/ SAWYER rs. HOage, assignee of the Lum-
/ berman's insurance company. Sawyer
had subscribed for 5000 u the original
stock aud given his check for the full
amount. He then gave his note at seven
per cent, Interest for $500 and took
| back the money as so much Ofthe check
and as between the parties this was no
doubt slOan, but as to the public the
court held it was a credit for SO much on
| the stock, as a stock note, so that saw
Yer could not set up bona tide claim
against the company as a set of against
the note, but must pay the full amount
of the note to the assignee, and then
take his dividend for his debt against
the company with the other creditors.
In the same way were decided the
cases of Jaeger rs. Woke, and Murger
as. Woke, assignee of the Gernania in-
sursnce company Of Chicago, both in
| vOlving the same principles. Several
other cases involving the same ques-
/ tions, including Isabella Y. ScanDOn
| US. the assignee OF the Mutual Security
| insurance company, are still undecided,
| but of course will be controlled by these
! decisions when reached; all finding their
origin in the great Chicago fire of OctO-
/ Der, 1871.
-
The commissioner of agriculture is
much annoyed by persons sending
money to pay postage on seeds, reports,
etc, and therefore gives notice that
money should never be sent to his de-
| partment for any purpose.
| AbOHt Congregational Action on the
! Bankrupt Law.
Senator Hitchcock has addressed the
Il T1Nk -, ~ j..
chairman of the committee on the judi
ciary:
/ UNITED STATES SESATE CHAMBER,
WASHINGTON, December %, 1873.
DEAR SIR-Regretting the failure oil
| the senate to act, prior to the holiday
recess, upon the bill repeating the bank
rupt law, so far, at least, as to wipe out
the present oppressive feature of invol-
untary bankruptcy, and fearing that
such failure will aggraVate financial suf-
| fering, and add others 10 the already
| long list of victims, I desire TO obtain
your opinion of the feasibility OF SO
amendiug the bankrupt law as to make
! the repeal of the oppressive features re-
! trOSctive, end also your opinion of the
probability of the early passage of such
| amendments. Your reputation as a law
yer and your position as chairman OF
| the senate judiciary committee will give
weight to your opinion; and such opin-
ion, if affirmatively given, upon each
| of the propositions above named, will,
/ think, go far to relieve public anxiety
and prevent useless and oppressive lit.
CATION. Faithfully yours,
P. W. HITCHCOCK.
To Honorable George F. Edmunds, Chairman
] Senate Judiciary Committee
3 Eg.aoA,- l., ro,,Is,.l ~. -
UNITED STATES SENATE CHAMBER
/ WAsHINGTON, December p, 1873. I
DEAR SIR have received your nOts
of the twentieth instant, and l say in
reply, that do not profess TO speak fol
any person but myself, Of course, but So
| speaking, l have no hesitation in SAYING
that any provision that may be made
respecting the forcing Of a debtor into
involuntary bankruptcy, and the pro
ceedings thereupOn, will, so far as my
voice goes, be made retroactive in suci
a way that no person will gain anything
by any oppressive steps toward debtors
Pending the consideration of the ques
ton, rs all such matters relate to rene
dies which congress may take away
altogether if it pleases, there will be nC
improperly in making any wise provi
sion, which regulates the proceedings tC
just ends, apply to pending cases; and
/ feel great confidence that such will b,
the opinion of the senate. Very truly
/ yours, GEO. F. EDWARDS.
| 10 Honorable p. W. Hitchcock, United State,
senate.
Miscellaneous.
/ From the Special to the st. Louis Timesl
! WASHINGTON, d. c., December 22.-
! The secretary of the treasury is sanguine
| that at least niue-tenths of the amount
of the bonds of 1858 will be redeemed by
exchanging them for the new five pei
cents, and that very little coin will be
used FOR that purpose. There is slight
advantage in exchanging for the five
! per cents as the market now stands. The
| old bonds were considered good invest
ments, and very few holders desired to
part with them on any terms until il
was proposed to exchange the five
per cents for them. The secreta-
/ ~ of the treasury has received
dispatches from London, and banking
houses in New York doing business in
/ foreign parts, to the effect that the hold
! ers of these bonds abroad are willing to
accept the exchange. He also received
advices from 3 resident of New York who
holds these bonds TO the value of two
Z hundred thousand dollars, indicating q
desire for exchange, besides Others in
I various parts Of the country, and feels
confident that the small demand for
coin redemption cannot prove embar-
/ rassing in the least to the treasury de-
pGrtment.
THE AMOUNT OF GOLD
in the treasury is put at fifty-six mil
lion dollars, 0f which twenty-six mill
lou dollars will be required TO pay the
quarterly interest on the public debt OH
the first prOXimo. Two weekslwill be