, 1873-03-27

a4oo, 900 Of Tho money Of citfzens scattered
throngh tho interior e|atcu, TO- their r, own 1ae'
without giving one dollar in return. The Court
Of communicating 80 gront nh outrage.
Mn. oAMrnE11,
for tito petitioner, ea tlo material allegations OF
this petition .wero-a provablo doht, and aots of
showed tint two Judgments woro obtained in
favor Of Hilton; they wore rendered by court Of
general Jurisdiction, aftor duo aoryco Of pro-
cess, md could mob be impoaohed oollnterallY.
proof also showed conol,layoly taat tho
Commoroial National Dnnk discounted for
tho Telegraph Company three notes:
ono for 90, 100, another for $4,000, and
another for s1 900. Tho bank actually Furnished
noteB and warrants attnclled being executed by
tho TreaBuror, wloso action Was expressly rnH
fled by the Executive Committee. on tho 9Th Of
June, 1872: The first noto fell duo Aug. II,
1 VIII M Sg warrant IT" ntoroey 10 en fsn for he
note became duo; e1,250 was paid, md o ronow-
nl noto with warrant OF attorney WIS gtyon for
tS a 81 o2 An a1 tho rq Int note fs
d moro continuation Of tho original warrants Of
attorney, aud woro givon bocauso thoro waa no
money in the treasury to pay them. They
for Mr. aRgo had testified that thoy
thought 1t extremely doubtful whetl,or
tho Company ,conld Pay itB debts, and tho
event had fully Justified Lis [Gagoal foarg.
for Gage testified " Tlloy wore removed bocnuso
tho Company could not pny them. Tho Company
got the money Oh the originals from tho bank,
mud intelidoa to mako tho bunk preference
rants Of attorney, IN August, 1874 were, thoro-
lore, clearly acts of bankruptcy within tho thirty
ninth section OF tho oct. Il theto could bo my
donnt that those WARRANTS OF attorney wore glyon
III contemplation Of lnnolyonoy, none could exist
as to tho second act OF bankruptcy chargod-that
tho Company, being inHolVent, suffered its prop
perty to bo taken On legal process with intant to
gyo preference. On tho l2th Of Decombor
Judgment WAS rendered BY confession tn favor
the bank on tho notos, for IN aggregate Of
in tho hands Of the shoriff OF Cook County two
days aftorTnrds: Whore . person permit;
tod what, what h ho =, could prevent, ho suffered
owed tho ang t. gS h1 aoGs % s
property on loyal process BY going into Volu1-
tary bankruptcy, and II ho did not do so he suf-
fercd tho taking and preference wnH. obtained
when the Judgment was confosaed. Tho Com,
process, and thereby gave a preference to tho
Commercial National bank. It intended this
| preference, for where tho probable Or necessary
consequence OF an act WAS to give preference,
! have intended tho preference. There could be
| no serious controversy as to tho fact Of tho in
| aolyency Of the company on Doc. IA, 1879. On
TINT day thero Was outstanding indebtedness Of
from $4,000 to a50, 600, aside from tho claims Of
Reeve OF oyor e200, 900, and there was not a dol
lar in tho troasury to pay It with. Tho corporate
| property and franchises did not yield an income
| sufficient to pay expenses, and tho stockholders
refused to pay up their subscriptions, 30 that
tho Company tllen WAS, and still ie, unable to pay
| itB debtB in tho ordinary cOurHo of business,
| This wa8 Insolvency within tho moaning Of the
was useless to say that tho Company owned
telegraph lines some 1000 miles in length and to
OFFER SPECULATIVE OPINIONS
Us to their yaluo; tho admitted fact WAS that
| they yielded no income. It vas uaolesB to say
thai fhero we're owing to fhn Gomnapv S2D0 =