, 1873-08-12
GREAT WESTERN TELEGRAPH.
Judge Blodgetts Decision on; the
y: 80 Petition to Set Aside :.
:. Adjudication.
Tile DcCroo Upheld and Tho Company
Declared Insolvont.
The Case to Go Before the Circuit
a. Court on 1eeviow.


"a. Court on Ieeviow.
Yesterday Judge Blodgott delivered tho follow
lowing dooision OH tho petition to set aside tho
adjudication III bankruptcy Of tho Groat Western
Telegraph Company:
On tho 9Th Of February last, John Onrk Hilton fled
in this court his petition claiming to 10 creditor OF
:a ooo and alleging eostain scts 4 bs'KFpey which
h had boon oomm'tod ly asid Company. and PRAYING
sat sg Ssra 30 ss 5s s e: .s
Of April laat }ho Court found the respondent guilty,
charged, and adjudcaed 1t bankrupt. Subsequent
ieSew Of ao acon %ai % Of tho ps I Sl' pro
to 5 ~ s sSa oa e
hear bomo nowsy. discovered testimony IN tho caHc.
PIT tue learned oiFon Judge refused to hear tue I'd
gcation from him. the respondent apped to this Court
for rohcurng. Tho petition for thia rehoaring eot
adjudication the respondent had discovered certain
evidence showing tha. tho pctoninY creditor, Hilton
lis pon 1nns and o Pre- noes odene
ing snd indebtedness did not show an honorable debt
In tho hands Of tho original buyer, by renson Of certain
payco. That Hilton had takon these notes with
knowledge Of thoae cqucs, and wna not, therefore,
in any better position to ask ud3cst11n Of bank
ruptoy ngains tho respondont than 1oovo would hnyo
On tho hearing Of this potttion gavo tho reapond-
ont eAvO to Introduce the newly yscovered proof on
this point stating that would then ds.erinno whe-
or, with this sdons proof In tho csso the edjud1-
and tho petition dismissed. IN accordance with this
order, the additional proof hua boen heard, and The
eSsa sea H. ss sgs ns g 95 i. nsx ss,k Il o as M :s y
TO eatitnee On Tho former hearing?
IN his petition, Hilton ropresenta hinsoN to be u
dered In hta favor ogans the Company In tho Circuit
Court Of Cook County, upon thrco premtssory notea
e T. s resy sssd Il
nve el si1 months .fter date and inao.aed by noeys
to Hilton, and one note fos $500 dated Aug: l. ls1a
f's 81 s ast ~ seee
s saSs%sat 's's ssndsSsa " ssntsssion r.. Ssy Y
noo for and to so noe Ho Of Hug Iii
heao notes bc4r interest at tho ratio OF 10 por per
alnun from date sna being aisncd BY George l. Otis,
Il A waa esiod IL he he poon fo1 reheans % tbat re-
spondent had sneo The rat tss discovered evidence
lilo consideration for thcao notes; that tho noea
not in fact executed and delivered until aftor the pub
Msnoa Of the eeson w s ss n the Of Tor
coraln contract entered into boiween tho Company
between Reeve and tho Company; that satd notes
wore, IN fact conceded botween heovo and Hilton,
Il 5 W
edge On tho part Il Hilton that sho Company nad IN
equitable set-o against nee.e more tAa, nuicient te
authority to execute these notes.
From the oyidopco adduced upon tho fornor trial,
had concluded TINT II Reeve had sought to havs the
Company adjudged bankrupt aa creditor on these
noes aftor tito decision Of tho Tcrwger by tho
pr5vape eSt II bis hasds on s ground '~
IL which ho might. be shown to be Indebted to Tho
Company, instead of tho Company being indebted to
him. Tint his dealings with the Company woro adj
Judged by tho Supreme Court to DO far tainted with
creditor until tho accounting ordered had taken place.
md the true state Of tho indebtedness between him
and tie COMPANY determined.
Having now heard this newly-1iscovered evidence,
aay that do not think suatains tho position takcn
toatiaod that tho signature Of Otis, Tho TEcas-
urcr Of the Company, and tho seal OF tno
tion after tic decision in tue TorwiIger case, but
what was Of these witnesses. and which perhaps
unexplained justaed the charge: is s.rlainea by
the notes woro a Htgned as they now appear at tho
time they nado ii July last but that he warrant
sigued or the seal Affixed until about the time tho
four months noto bocamc duo. circumstance Gu
entosed by virtue Of tho warrant 4 atorney On either
Of those notea but suit WIN brought on them. process
dqy 1s S aassa s9 e. Il, sy as n BY
ton for the notes It Becms from tho ovt-
asaco that Hilton qo:a and asgo were psrsneels in
packing house in tis city, their respective intorests
therein having beon about $780, ,00U.
tween o members ass efd ths M s and ase and Hilton
proposed to withdraw their capital thersfrom; that
thoFe was such state Of feeling between Hilton aud
Reid & Sherwin that negotiations for settlement
were unpleasant, If not Impracicabe, between them
and that Hilton assigned 70 Gage his interest in tho
an Of I deangs Ss@een On i hmssf
and Hilton and tho firm. sett1enont arrived ut
"a n hn1I
It eomothina ovor 100000 and tho snount thus de-
property Of tho as paysbio ID instalnonss 81 $oD
each di,e eycry, four nonshs until all wero paid,
upwards. Included In this 100000 $15,o0o found
duo to- Hilton for his copartnetshlp nterest IN tho
firm. aago had boeomo tho owner and holor Of these
notes In question, except tho $500 by transfer from
10 ~ doubt but Gage had patd full yaino ;',e
ohieago to IN M a aser put q and
sfs I 5 s I'D I o i s
mud obtained from Gage tho money with which to
meet thess ongsS,ns osg2 ass sayspee ths
tin notes Of tho Company therefor.
Tho notes III question had been delivered to Reeve,
TIM time this tnis i;cid / sherwin busnes. VA Cons consun- m
natcd, which waa not until aono ttmo ia July, NJ
sso sns Ss ing e na 4 no q
uilton in satisfaction OF 1lilton's interest III
tho md J. + serwn TN hps an and
Joforsonvillo 1ailroad Company Of Indiana Of $1,000
each. Thus exchanging t1eHo threo notes of tho COM
pany Of 90 10 each amounting In the aggregate to
nearly {20000 without Con,psny's notes for SIS 900 duo
Hilton on tho Reid shcrwln paper, md $4,000 4n
railroad bonds.
Isce nothing in tho evidence pertaining to this pnrt
OF tho case teuling to show II WIS not 6 bona hde
transaction botwoen Gage and Hilton. Gage In doa-
Ing with Rela l. 8horwiu had claimed to own Hiltons
interest IN tho business, and had included that ors
est In this long mortgage taken 10 himself,
As between hinsef and Hilton, ho was bound to
pay Hilton what that interest WAS WORTH aud pro-
posed to gvo him these notea for tona interest III tho
toil sberwin mattor, and the railroad bonds, and
tho balance IN A1mohinR else.
It is true that both Gags aud Hilton stale that no
writings ever executed between them, at tho time
nasslgned his nnuqudatcd interest in tie Arm to
Qage for adjustmant; but caunot deem that cir
custanee Of sufficient import say that Hilton really
had no intoreat la tho firm. lilo and dhgo wero part
nors, aud Intimate friends; and do not think tile
fact that vouchers were not exchanged, writings
executed, shows that Hilton had bona fde claim
against tho firm to bo adjusted. II he had tu fact
aucl Interest 1t would have beon easy to haye proven
calling parties Intimate with ita aIars, upither Of
Which was done.
It nay bo and probably Ia true TINT neither Of tho