, 1873-02-07
CINCINNATI,
The Firm OF Morton d Fremont De.
c1aTed Bankrupt.


Special Despatch to tbs Chicago Tribune.
Csc1SNAr1, Feb. Ga decision Of great in
terest was made By Judge Swing in the United
States Court to-day, in case involving the re-
sponsiaility Of members OF a firm for the acts
OF partner performed IN their absence, without
their knowledge, but while in the capacity Of an
agent delegated to control the business What
adds to the interest is that Gsneral
John G.. Fremont Was one Of the mera-
berH of this firm to-day aajndged bankrupt.
Three years ago the firm originated end took 3
contract to e1cavate railway tunnel two 1nilcs
in length under Walnut Hill, to mako q short
route from Cincinnati north Though no real
work was done, quite an amount Of preparation
vas made: 02e item of expense was lumber,
for which Morton as agent of the firm
gave q note, which has not yet been paid,
though due severnl mouths ago. On this
delinquency a Judgment OF bankruptcy WAS OBJ
tanned Carts, horses, wagons and tools, the
agent Of the firm in the absence OF General Fre-
mont, for $500. The petition to adjudge this
an net Of bankruptcy involved other litigation,
that Morton. as agent, had absented himself
from Cincinnati to dodge the Law,
by Judge Swing that Morton delegated as agent
OF the firm did not bind the other member, Ere
mont, to this transaction, which was not IN the
line of legitimate business OF tho firm, aud that
AAOI H+A
to Morton alone.
Judge Swing held that in order to sus-
tain joint adjudication against two or
more persons it is necessary that some
one that assignment bT one OF the parties Of
partuership with fraudulent intent to hinder
aud delay their creditors, or for the purpose Of
erading the provisions Of the Bankrupt law, and
concea1ment Of himself to prevent the
Thn e fho usa BUSINESS Of nGi tho s
and could not in law he regarded as the act Of
tho partners not consenting thereto. But that
Of giving commercial paper for the purpose OF
carrying on business by one partner MAS bind
tho suspension OF the payment thereof, and the
non-resumption for fourteen days, as per allega-
ton, Was in law the net OF all Of the partners.
CEc1HsATI, Feb. 6.-ln the United States
Court OF tho First District ct Ohio (CmcinnatD
the Hon; ?. B. Swing, Judge, decision was
rendered to-day granting the petition Of James
T. Williamson to have the firm STYLED s. ".
Alorton d Co. adjudged bankrupt, on dec1ara- |
tion Of petitioner that they had stopped
p payne@nt EW @ Of thelI commercial paper for fourteen
ment for lumber, and neglected to pay the sarns |
when due. The members OF the arm arc s. ".
Morton and John c. Fremont. Its business was |
to excavata tunnel under the Walnut Hills at |
demurrer to the petition by defence.
Four counts of acts OF bankruptcy |
we're alleged. The firm Was adjudged bankrupt |
on tho first count aboTe rcoitcd, while the peti-
lion on the remaining three counts was dismiss
I'd, Oh the ground that the ac-s alleged, though
by member Of the firm, were not ia
.he line proper OF the firm, and that s. y. Nor
on, who committed these acts, and not tho firm
u which he Was member, was responsible. The
allegations were dismissed as the acts of Morton
lone we're that tho firm sold and conveyed per-
'onal property to an individual when inso1vert,
md in contemplation OF insolvency, and that
hey made this sale with intent to hinder. de-
~, aud defraud creditors, and that, to avoid
egal process, they absented themselves Six
months from the First District OF Ohio. The /
aso viii probably be taken to higher tribunal
s. Y. Morton as agent Of the firm transacted
he business here, while John G. Fremont, the
!. The judg g1oent is against the firm as firm,
nd not against its members es individuals.