The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-06-27
Decision I'm the Case or WaGgoner e.
Harvey, Rankrupts.

In the United States District Court yester.
terday Judge Hughes delivered IN opinion
in the matter Of Waggoner & Harvey, bank.
rupts, as follows:
After the partial hearing of this applica-
ton, on the 20th February, the barkrupts
relied upon obtaining the consent of ma.
jority of their creditors to their discharge,
That expectation having failed, and the
hearing having been continued until this
time, they now claim that they are entitled
to discharge under the act of July. 1868,
requiring that their assets surrendered shall
be equal to fifty per cent. of the claims
proved against them.
| shown BY the special report of the assignee
fled May 4th, 1874:
The claims proved amounted to........s42.107 20
inc nall this amount would be........ 81 ,053 SO
The assets surrendered were:
Stock of groceries sold at
auction or.............f6,490 90
Open accounts against
customers to amount off, 1855 44-s23 .045 IA
Taking these assets at their nominal value
| they were two thousand dollars more than
| fifty per cent. Of the debts proved. The
| fate of the application of the bankrupts fol
| discharge depends upon the question
| whether the open accounts surrendered by
them are to be taken at their face value
or ut the value at which they were sold by
the assignee. This was case of involuntary
| bankruptcy. Their assets were thrown upon
the market at Il time Of great financial de.
preston. II time had been had for collect
ing these open accounts; if the bankrupts
had not been forced into bankruptcy, and il
| they had been allowed TO manage their
assets in their own discretion and interest
and in pursuing the due course Of their bust
ness, they claim that they could have real
| lied from their assets within small per
centage of their full value. Is the conse
quence of the act OF creditors in throwing
them into bankruptcy and preventing then
| from realizing something like the full value
of their assets to be the denial to them of {
discharge in bankruptcy? think not.
| Ii this were case of voluntary bankrupt
cy, should feel at liberty to pursue diff
ferent course; but where merchants are
against their will, thrown into bankruptcy
and their assets are sacrificed by forced sale!
in time of financial pressure, think they
are entitled TO their discharge in Il case like
this one.
| Originally section 33d of The bankruptcy
act required the assets OF Il bankrupt TO pGs
SO per cent. of the proved debts. 1t wa:
altered by the amendment of 1868, so as tc
require only that the assets when surrender
ed shall be equal in value to 30 per cent. o
the debts. The amendment makes n Qstinc
ton between what the assets actually Sell tol
and pay, and their value when surrendered
upon a fair appraisement.
| These bankrupts claim that their open ac
counts, amounting to SlG,555 on their face
would have paid nearly that ifthey had beer
collected in the usual course Of their busi
ness. l think, being involuntary bankrupts
they have a right to the presumption thai
they would have done so. And, therefore
| hold that the written assent of majority il
| number and value of their creditors need no
be had. Let discharge be awarded them
| +NoTE-Since this opinion was prepared. ant
before 1t was filed. Congress has pissed the amend
ment act of 9Th June, 1874, giving discharge t
| Involuntary baukrupts.