The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-06

OF mortgage on personal property in the A&he-
neum Theatre, No. 5s3 Broadway. aud OF q mortgage
on lease OF that theatre. The mortgages were
given on the 2ist OF January 1874. to one Traphs.
gen. In trust for the bankrupt. by son OF the
bankrupt on q conveyance OF the personal prop
erty and the assignment OF the lease by the bank
rupI to his son. Some days subsequent to the ap-
pointment OF the assignee Traphagen assigned the
mortgages 70 him. they we're given to secure
300 OOO on which the sum OF about 81 300 had been
paid. II Ia alleged that The conveyance and as
Segment 10 the bankrupt's son were made with
out consideration and ior the purpose OF putting
that after the appointment OF the assignee
the bankrupt's son abandoned the theatre !;
that the assignee took possession OF the building
ana forecosed the mortgages on the property
alluded to; that under the foreclosure 1t was sold
in July. 1879 ana hidden IN by the assignee, such
for the sum Of $4,000, there being no other bid.
ders at the sale; that the agent OF the owner OF
The property agreed 20 recognize him as properly
in possession OF the same. ana main tain MIN in It
n he would pay S2i2 20 as weekly rent; that ne
nss since psd ms 10 order 70 protect the
sonal property is made up o. articles adapted only
for theatrical uses; that Il shis personal prop
would be entirely sacrificed; that the lease
will not expire until May l, 1875; that the mort.
gage on the lease was given to secure $4,000, and
that the assignee Ia now making ARRANGEMENTS
with persons who are anxious to lease the theatre
at rent nearly equal to the sum required by the
sured that II he Is empowered to lease the theatre
he can do 80 without any delay and relieve the
The petition prays Tor an order empOw ering the
assignee to lease the premises until he can gain
title to and sell the lease specified and authoriz.
he can let them. In August, 1873, Charles Deviin
creditor OF the bankrupt, presented to the
Court petition stating that the purchase on the
foreclosure OF the premises in question by the as.
signee was made In tie interest OF the bankrupt;
that the sale was managed for the purpose OF pre-
venting fair competition; that the notice OF the
sale gave no Information as to who owned the
property or the mortgage; that while a material
valuable part OF the lease consisted OF the right OF
Broadway. no reference was made to this fact in
the notice; that the notice did not state that the
unexpired term OF the lease; that since the
sale, :he bankrupt has assumed possess
s Sic ana the OF r the thar
property, which has been placed by the bankrupt
in the care OF the assignee; that the bankrupt has
dOngs In relation to the natter that the assignee
mas got an oner to rent the premises from one
Malcost theatrical agent and instead Of answer
who boasts that he has control OF the same
Mr. Devln's petition Is to the effect that the as
all interested parties, including the bankrupt's
creditors and that the order OF July 16, 1873, may
be EN- made , IN conformity for with his prayer
only owns mortgage on the premises in question,
he cannot sell 1t except by foreclosing such mort
once and the lease be sold. Tue letting of the
premises and OF the movable property not having
been autf OriZed by the Court, those who are in
possession under such letting can claim rights
as against such order IN the premises as the Court
may now make" An order win be entered in ac-
the assignee; ID. G. Calvin for the creditor.
Suit in Bankruptcy.
Before Judge Bla.chord and Jury.
Yesterday the case OF Francis w. Holbrook as
sgnee, vs.. William J. Enrich was tried in this
Court. The circumstances, briefly stated, are
these I'm March, 1872, one Gertrude Fuchs
opened business at No. 15S Eighth avenue. on the
10th OF July following the Sheriff of this city
LEVIED on her property and stock In trade under an
execution amounting to about $780, The SherifY's
sale OF this property took place on the ed of July
when the whole stock, claimed to lie worth at
least g. $780, was sold in bulk to William j. Enrich
the defendant. 1t IS alleged that Enrich dealt
with the property for three or lour weeks, and
then, on or about the 18th OF August by a bill OF
sale. made 1t over to Frederick d. Fuchs the hus-
a petition was filed in bankruptcy against Ger
trude by her creditors, and Francis w. HOlbrOOk
the plaintiff, was elected assignee. HOlbr00k now
brings this action against the defendant to
the value OF the property sold under the execution
setting forth that the defendant gained no title to
the property by virtue OF the Sherifrs sale. 1t
was further alleged by the plaintiff that the sale
was made in fraud OF the Bankruptcy act. The de-
fendant claims that he acted in perfect good faith
In the whole transaction and that the property be-
sale. The Court held, upon the whole case, that no
evidence had been given to impeach the bona
tdes OF the purchase in question and directed
verdict Tor the defendant. which the jury accord
TN and Messrs Kurtzman and Yeaman for the de-
leudapt