The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-03-27

many or them core s0M tnis .44MSo, :
until he couldEga hold Of them he couid DO
lexplain.all these entries.A 80. - 8,
Counsel here asked for o snort: Time ~
consideration, and it being nearly z.ociocS
the court took recess until oaoch'
Afternoon Session. ia I
The defence introduced witnesses to prove
ltbot A. Camel & Co. approved the nets O
the creditors so far as related to the oeea u
trust. a =
renlv TO interrogatores said that be ATTENDED
ali fhes meetings Of the creditors-the nrs'
on the 9Th or 9th Of January-aud was ap'
nointed one of the committee to act IN con
junction with the trustees in such manner
as the committee might think proper Iney
| took to q subsequent meeting OF tnc c,eus
tors a COPY of the deed of trust, at Wnicn
time an expert was employed 10 settle up
the books of the bank. This appointment
was subsequently ratified oy the trus,e -.
The committee, acting as they supposed W..
all the creditors, advised the acceptanco VI
the deed, which was done. -. ,,,o1v
| For the prosecution: 10 not h nDo
how many creditors there are 80
badly one-fourth of them were p., ,hat
at the first meeting. Mr.. Verne was a' s sl'a'
L
NJ anv other. Do not know whether the
trustees have paid out or received any
money since they have had charge OF Tue
honk Does not know of bis own knoWi-
odoe of any preference having been gwen 10
r r. August attended several OF the
,oet;nos of the creditors. The meetings
msre Called TO protect the interests oil the
orod;tors of the bank by acting In connec-
t;on With the trustees. Was appointed on
tno commiltee mentioned by MIR. Smith.
The Committee. following the advice Of Mr..
George d. Wise who had been employed BY
them advised the creditors to accept the
terms of the deed. Knew Of no prefer
ments having been made to any creditors.
His first knowledge of that fact was obtained
since this trial commenced. ...
Mr.. Howard admitted-First. That this
deed was not fraudulent. but in its opera
tons in delaying and hindering speedy set
tiement, was an act of bankruptcy. Second
Is. At the same time be contended that Cap
pei & Co.. by acquiescing in the deed, bad
eStopDed their own mouths in this cause.
Thirdly. That after the suspension Of the
bank, they having drawn money from it, are
nstopped from further proceedings in this
cause.
During the trial, the Judge said, partly in
instructions to the jury, and partly in reply
to counsel, substantially as follows: -.
Under the common law and statutes OF
England relating to fraudulent acts, and uader
the Virginia acts embodied in chapter ia of
the Code, debtors can make assignments OF
their property giving preference to one cre-
diter or class Of creditors over others in a
large class Of cases. The laws on this sub
jcct vary in the several States; but it is pro-
pably true that under the State laws relating
to fraudulent conveyances, preferences can
be given in all the States.
The bankrupt act of Congress is founded
upon different policy. 1t is directed against
such preferences; and wherever it can do go,
it enforces an equal pro rata distribution of
debtors property among all creditors. Black
stone thus defines the rule of distribution in
England, D. 4S7, book I'd !; and such is the
policy of our law. In pursuance of this!
policy of the bankrupt law it declares maIy
deeds OF assignment to be null and void. or
10 be acts of bankruptcy, which would be
valid under State laws. Acts of bankruptcy
under the bankrupt law, therefore, differ
from acts which are fraudulent under the
Common Law, and the statute laws OF the
States. -:s;.a -
The present question is whether the deed
of assignment made by the Dollar Savings
Bank on the Sth January, 1874, was an act #
bankruptcy, not whether it was fraudulent
conveyance under the law of Virginia.
The Sth clause of section 80 OF the gen.
eral bankrupt act provides: That if any per-
son, being insolvent or bankrupt, shall make
any transfer Of property with intent, by
such disposition of his property, to defeat
or delay the operation OF the bankrupt act
he shall be deemed to have co mmitted au
act of bankruptcy. Section 30 OF the act de-
fines a transfer 10 delay or defeat the opera
ton of the bankrupt law to be one that IS
made with a view 10 prevent the debtors
property from coming to his assignee IN
bankruptcy, or to prevent the same from be-
ing distributed under this act. or 10
evade any Of the provisions of this act"
The clause in section SO, thus interpreted
by the second clause of section 10, appled
TO the deed of assignment executed on the
9Th January, 1874, by this bank, leaves no
possible doubt that this assignment was an
act of bankruptcy.
The 39th section Of the bankrupt act,
clause 10th, declares that the person who has
maze such transfer of property shall De
adiudged bankrupt, and this court has no
III lBC ludllCls Spoli DSibS So az
Judged his affairs are required to be put into
4 course of administration by the officers of
the bankrupt court, under its direction, one
of whom is the assignee in bankruptcy,
elected as such by the creditors of the bank
rupt. -.,'"
But instead of choosing an assignee, the
creditors may, under the Add section Of the
bankrupt act, require the assets of the bank
rupt 10 be managed and distributed by one
or more TRUSTEES nominated by them,
who shall take, hold, and distribute
the assets under the inspection and
direction of committee of the credi-
tors: all the acts Of the said trns-
tees and committee TO be proceedings ID
bankruptcy, under the control and superTi-
sion of the Bankrupt Court.
Section 43 is as follows:
.Tbat II at the first meeting Of creditors, or
ut any meeting OF creditors to be specially
called for that purpose, and of which pre-
yious notice shall have been given for such
length of time and in such manner as the
court may direct, three-tourths in value OF
pthe creditors whose claims have been proved,
shall determine and resolue that it IS for the
interest of the general body Of the creditors
that the estate Of the bankrupt should De
ro,lnd up and settled and distribution made
among the creditors by TRUSTEES, under the
inspection and direction Of committee Of
the creditors. it shall be lawful for the cred
ltors to certify and report such resolution to
the court, and to nominate one or more
trustees to take, and hold, and distribute
the estate, under the direction Of sucn CON-
mittee." ...-.
1t was therefore quite unnecessary for the
purposes sought to be subserved by the as
Segment which was made BY this bank to
make the ASSIGNMENT which it did to the