The New York herald., 1875-10-22
BANKRUPTCY DECISION.

Judge Batchford, in the United States District Court
yesterday rendered decision in the OF Stephen b.
French assignee, &C. Of the estate of William Adams,
deceased Of Sag Harbor L. L. against the First Ma
tionaI Bank of New York. 1t is as follows-
The evidence shows that at the close of business
Che 5th OF January, 1871 the bankrupt had a debit
balance against him in the books of the defendants Of
81, 1858 35 On the 9th OF January the defendants paid
drafts drawn on them by the bankrupt to the amount
him such books OF 1888 at the close
OF business the 9th of January. The
defendants then wrote to him the letter OF the 9th of
January, which sent to him by the special messen-
par, saying 'Your account with is overdrawn about
$4,000, and we have refused payment Of about $4,000
more OF your drafts IL requires full 900 to make
you good II you are short OF money that you
cannot send that amount by the bearer you
by him some bonds, notes, &c, that make you
y loan on and save you from further discreditn
The special messenger, with this letter left New
York on the 9th and arrived at Sag Harbor the same
evening. Meantime on the nth after the messenger
had left, remittance of 81, lis ai which had been
sent by the bankrupt TO the defendants tho 5th ar
rived and was credited by the defendants the bank
Iupt account the 7th. They also credited him on
the day with $3.50 So the proceeds of S533 SO
gold On the same day they paid drafts drawn them by
him the amount Of $15l 32 This left debit balance
against him their books at the close Of business on
the 7th OF $433 So But the testimony of the cashier
of the defendants shows that they had their custody
on the 7h the item Of $140 coupons aerward credited
IN account the 1lth, and the item OF $533 A. Hunt
afterward credited In account on the l4th. The bank
1upt was therefore, not really indebted TO them all
at the close Of business the 7th As the result of
Harbor the 7th, tho package containing the items
which he delivered to the defendants on the
11th and which they credited In account on that day
at ST. 527 80. Whatever might have been the proper
conclusion as TO this 527 49, II the bankrupt had
xemited the ST. 15 "a which he did remit on the 9th
in the regular Of business and which on the ev
dence must be regarded having TO the hands Of
she defendants before the 81 b27 30 was placed in the
hands Of the messenger IL apparent that the 52I 80
came TO the hands Of the messenger al time when the
bankrupt not indebted 70 the defendants but when
they liable TO respond TO him for the sum Of
$3.50 55 They subsequently responded to him for the
81 527 80 and the $239 SO and further item OF $35,
collected for his account the 1sth being total Of
31,S0l "a
sec therefore, nothing in the transaction as 10 the
81 527 80 which the plaintiff can mpeach as in viola.
tion OF the provisions Of the Bankruptcy act All the
remittanccs made by the bankrupt to the defendants
appear TO have been made In the ordinary course OF
business dealings between the parties, and there no
evidence OF any intent the part Of the bankrupt IN
respect them to give any preference 70 the defend
ants though at times mis- account may have been
0verdrawn because he constantly drawing on them
and they constantly paying drafts Of his and re-
cevng remittances from him. and they paid ten drafts
OF hts after the 9TH Of January-namely Eve on the
eth, two the 14th, two the nth and one on the
1sth
The bill must be dismissed but, under the circum-
ntances, without costs
8. l. Gardner Tor tho plaintiff and Peabody Barker
OR the dafandanta.