, 1873-05-20
Elaborate Opinion by Judge Drum
nlond Of tho United States
Circuit Court.
llr. Perkins Shown to Have Suppressed
Material Information from
tho Creditors.
He is Adjudged to Be Not an Impartial
and Disjnterested Assignee.
The District Court Ordered to Remove
Perkins and Appoint His
Successor.


.oue-expected opinion in reference to the petl~
tiou Of tho creditors Of tho state insurance Com
pany for the removal Ut Norman 9. Perkins,
Assgueo Of tho bankrupt. The opinion con-
tains nll tho points lii controversy, sud no
fnrthor introduction Is required. It Ia aB fol-
Iowa: ..
q, nel"ber, iS7, In ii this City, to sato INSURANCE
Company sastaaed such losaea that Il nocs1'o insot-
@ 'ng I'd nPes e
Wien u u tIoy ~ woro usn5e to psy thor de5ts. Atr:
ason spRo1n'sd eseiyss ,,,o Of nn,. Tue sao 5
iasisees es Ssee aSa Wits ss psaps
in tho stato co.t aprl!cat!on was made ma to tue
District Of Illinois by sons Of tho creditors Of tho H.
srauco Company to have 1t declared banktMpt Mnues
He a # ths uas t saes: az on II tho M of n
iBT3: Norman d Perkins was elected Assignee Of tho
X s suss Ii Us o 5 o9 x
SANE year. and be cnto-e upon tho duties Of 1i!s trp:
On thS i2th q July, 1879, petton was aed III tlo
ruE REMOVAL MIR rEnK1SS
Aasgnee aud subsequently, yaso1s rsiion1 qa "e5e ere
removal. s Upon tho rettsio1s thus presented to tho
District Court md The answers Of tho Assignee, IN Or
der made by that Court relsrrin .ho ans"e rotas
ported to lilo District Court and that cours ref9Ss. to
unon 1etition was nled in Tho Circuit Cour under
te second secl,on Of thu Bankrupt ]nw for the review
,ner this rils s orer or Of o District Court in rosng to
rtmoye Mr.. Perkins was correct.
thu rn1sc1RA1 cAusEs OF coMr1A1Sr
rnae aCsi1st AIR. Perkins in the District Court, 1nd
that arc ranewcd hore arc tlat sioo VA" paid to hn
which amounted TO preference for sersces that m"
lecn rendered, and which 1t waa claimed was MI Il ..
proper preference nuaor tie bankrupt aw also, that
fc 1.usn settlement IN relation TO claim which tue
ueny Of ohio for reinsurance for icss sim than ho
should have settled tho claim for; that Ill ms con,
ust o. c Asass pares 10 who cs Sn
communicated to them III reation to tho aFnira Of tho
which havo been the anbicet Of review IN this court.
THE p1sTRrcr corRra EnRoH.
There la only one ground upon which, think Tho
District Court errrd-holtng THAI It Was Nntenahle,
ws 4 roat Is tsn1e "a ;hgt asn a %6a 'at "a' e.
creditors Of tio Company from. time to time to the
hays been apparent, vas to nsccrai the condition Of
The Company, that hc auppresaed faeta which wero
n ut @ a' Is 70 ose aaf eaan gs
District Court el TINT he m not sarpres; , his Infer
s'se ~. snh es :ssi 10 a. ~ ss f.
formation was suppressed. md why y wa
s1s %'fs o a sy ond %s Il hes rs
duty to communicate.
We hare to etart With the assumption that thoso par
against toso assets and inquirirg IN relation to
uncommon thing ior M Assignee to 10 annoyed from
time to time by numerous applications and Inquiries
qsS4t % Wa % f e ,so sn& III or due e4Rs sowsnees
for the natural impaticnco which might bo crea:ed by
these repeated applications aud questions 1nade Or ps
could he made against tba Assignee, tic Court would
o Interfere viii tho ruling Of lie district Court.
hut Tu1s WAa NOT ALL.
The looEs Of ho Company came Into his possession.
according to Ills statement, early in May: l87a
~ one s5sss Etc., he S a 81 SF 81 saa of ane
The Court Mi VIII prsauae tsst ths Assignee Il the tho
knew certain facts, some q which wero these: Thu
the principal u,anagera Of tho State Insurance Gem
the Company and tho Prcsdent Of tho bank; that o.
a' dss s 9t w t. a T
e." =; J., Il r.: Il
wlon these books came into tho possession Of tlo Az
sIgnce an le became acquainted with their contenta
or less extent, both Of the insurance company mud III
1ant, had been concerned in ;:
THE puEouAsfaa or CLAIMS
against tho Insurance company with View OF 6ettln
tho TIC Ny Sst!oaai sD 1esn s aea Truss sank: Haa.
una Under A eicunstsnce! wlish sheS that ths pariis
were ondeavorlng to dcpreciate tile valuo Of thes
s them Il ts eao.p p pato Thoss ase iasa wsh wer
known to tho Assigneeor ought to lase been known
him. very shortly h1teT 1b booEB came 1nt0 &1t pGH6ea
non Ono grsat laading tact to which havo adyerte.
Company The aum Of over sjoo 900. Alother fact tia
tho appointment Of tho slato Court, did not 81
up any clam 70 70 :, this 1s'rgo deposit Of,
upon tho assumption tint theso wcro facts within til
knowledge OF tho Assignee. or ought to have bccs
e ef M @ n Ssss's e ass xsw e2
go into tho market and purchase clains against III
Corporation Tor tho prposa o. selng Of against n
Wit s. ,asaess ,,, & ~ tSo ,s;S Sssisssise 4,
coaF has already 1sen ezpressca Spoa that question
and tho Court, on the 9Th Of June last, cclled tha
sn1 neF q sac atato Ct aes 4eto eou1 nG. 20
nn TINT question: there ean he no doubt III opnos
tns qaS n X. S Esaa an an s WITH na hH
purchase Of tie claims against this insurance colnpan,
Mha view to set them oil agast this deposit accom-
WOULD SsyEn ALLOW ypcu srr.osr
esn sr sush n BY
baE aasoy s ss noes 'as S 20 e
parties possessed. What mean to aay is tlat, in
.ortnor, no court Of equity would ever tolerate Sc
OIL obtaiued nntler anch circumstances.
Now this Assignee knew these facts; that is to sa
nhateyer might 10 hia opinion as to tho sc~oif,
lie inadc. Thus posacskinK kuowlelge, lot us sre VII
hs 1Id aaa vhst he a'4 not, , Mhoa applssaion Y Y
sss tst to s:~ sSa' & '1';s IT,. 's
calGQ oil blr. ttrkina. week or tell days hel0rn Il
Isst petition was Uled, that would bo about thu Int
1uly 1879, Ho called upon linn III relation to tho pl
ehasa Of clalm which ha llsd or which lie represet
ed. atr. Perkins referrod htcl to h1r. Truman, wi
rus In the same office, nul told him that T1tm
would kuQ,y, that ~, who would heconla purchase
The witness aakal II Truman was buying up poltc
Truman said that 1'o waa buying them. and WY pa
ing ~ cents for them. Now tl1s WAS gtntlcnl
ano was In hr. Perlins Office to whom b
teEtin4 referred hip1 and rho .,ga
him this auswcr in relation t0 tho value Of the polle
or, at any rate. the price that h0 was paying. Ate
s*arIA ho ca!lul upon lin and llo said le wou
pay II censs. Now bore person who cal!
upon tho Assignee; tho very object Of wlloso call
must hAvo leen known to tho Aaatgneo to asct
tasn something nbout tho yaluu nf tbs claim which
had against tic Company. And lbs was tho lst
July, 1872.
Mi. Thomas aa5s also that an application was na
Ay htm 70 tho tatna effect as that 1nada by \
aliller. "Tho Axsi0ucn told ma TINT 10 co,
uo} purchase tho claH himself that Ia knew PAL
4llat waa purchasing. The Assignee asked how iuu
had bccn offered for lfio claim. Told him 1ak I
cent. The ARsfBnto gave tic Impression that Il
worth, lp thought. something more than that, L
do not think lo mentioned any nRurus
Truman ". Draphy called on nlr Hbbard no sa
about Tho 18th Of May, and about thu same tluso il
an interview with hir. Perkins ln reference to
cailn, Mr. Perkins said ho did not know what
Company could pay-that many policies could
bought --
I1E