The New York herald., 1876-08-17
THE COURTS.
The Metropolitan Hotel
Bankruptcy.
Prospects of Another Dividend
for the Creditors.
MORE MATRIMONIAL MISERIES.
MAT RlMCNlAL MISERIES.
A Pedler the Victim OF Golden"
Opportunity.

Judge Ward Hunt, Associate Justice OF the United
Btates Supreme Court yesterday, Gled decision in
tho Circuit Court for this the suit Of John
d Platt, assignee in bankruptcy OF Simeon Leland
Co.. against Alexander T. Stewart The suit was
brought 10 set aside OF real estate and
shattcl mortgages the furniture OF The Metropolitan
Hotel made by the Lelands TO secure Mr Stewart Tor
of On the 24th OF March 1871, petition
In bankruptcy presented by George +. Bellows,
creditor, for an adjudication Of bankruptcy against
Leland l. Co, and the adjudication made tho
lst Of April following. The Le.ands kept the Metro
poltan Hotel under lease from Alexander 7. Stewart
Al the time OF the bankruptcy they we're holding
under lease which expire tho lsl OF May,
1871, at hn annual rental OF s'9lS6 The lease
provided for first mortgage and lien on the
furniture ana chattes OF the hotel Tor security for
the rent, the lien and the mortgage TO be renewed
yearly. ihirty days prior 10 3oth April with an
additional first lien additional furniture. On the
hrst day OF July, 1870, the lessees failed pay tho
ren. due, and from that time until the bankruptcy
they wore 10 arrcar, On the 24th day Of January,
1871 two houses aea lots Crosby and Jersey streets
this city, and ihe 18Th OF February Nos 1877 and
139 Prince street; conveyed ny Charles Leland TO
Aiexandec 7. stewart on the 4th February 1871
the Thomas Farm, in WesIchesier county WAS con-
vcycd bv ruen Leland TO Alexander T. stewart Tho
arrears 'sA al this time were $6l. .00l 43; and the
vne'- lie estate e43, 900 and above tho
arrrar- The validity OF these convcyances and the
rhatIci mortgage was mprached by the assignee who
msised that these pieces OF property conveyed
by the bankrupts within four months preceding the
large Indebtedness and IN fraud OF the provisions
OF the Bankrupt act The decision says that the
questions to be determined are the Lclands an
insolvent condition when the convcyahces were taken,
aud II mr. Stewart and his agent, Mr. Hilton, had
reasonable cause TO believe them 10 be thus nsolvcpL
MIR. Stewart and Mr.. Hilton testify that they had no
doubt oil the responsibility OF the lciauds a, this
Justice Hunt says that II requires some confidence
suppose that Mr.. Stewart willing TO take from a
solvent debtor property he did want payment OF
good debt and for the purpose of accommodating his
debtor. Business who act upon this principle
10 suppose that Mr Hilton gave this advice, that
Nr. stewart acceded to As to the sovency of the
Leiands, Justice Hunt says that 10 thinks that IN
January February, 1874, the firm irretrievably
inso!vent and that Mr. stewart and Mr.. Hilton
hal reasonable 10 believe the Lelapds in
solvent, required by law, and that Mr.. Stewart
chargeabe witn such knowledge In March, 1871.
large number OF execution. and judgments been
obtained against the Leiands, the Uniei states Mar
shaI was directed to sell tho hoel furniture public
auction to avoid the injury which would result from
Tue action OF the conniciing claimants The ret pro-
cecds OF the sale S26, s67 90 which now In
Cot Mr. stewart claimed thus by virtue OF his chat
tel mortgage aud the renewal thereof Miller and
Concsr and the other Judgment creditors claim by
virtue OF their execution levy. The assignee claims
that all the hens and claims mentioned are invalid
der the Bankrupt acl and that each Of them sus-
pended and oyerridden by the title OF the assignee
bankruptcy With regard the validity Of the judg.
mcnts and executions the decision holds
them to be valid; that they for Just
debts and that the judgments were obtained moi
only without the aid and the debtors
generally in spite OF their opposition. With regard
The chatci mortgage the law hs point is explained
~ length. together with the form OF the mortgage and
the dccisioo holds that Mr. Stewart has lien upon
the proceeds the sales of the by reason OF
his chattcl mortgage The further question remains of
tbc right OF the assignee to MAINTAIN action This
Action Is justified although the gncc docs clam
BY virtue OF the judgments ard executions but
TO avoid them. They do exist, however, and valid
liens and arc by law represented 10y the sssignecs II
think" says Justice Hunt, ''they sustain the right
Of action OF the assignee against the fraudulent
mortgages Again the assignee has a standing
In court upon the point OF the real estate
sonveyances Tho decision may be summed up as fol-
Iows-Thc conveyance OF the real estate TO tho
o; f@3 900. above the mortgage made by $ Leland &
Co to A. 7. Stewart account OF of reht
void under the Bankrupt act and the assignee is Gu.
ttcd to recover the value thereof Tho chattci
gage. under which Mr.. stewart claimed liens on the
furniture security for rent, VOID in law. Ger
tain executions, levied the furniture prior to the
bankruptcy, are under authority of late the
United States supreme Court valid liens entitled TO
be paid. Tho residue OF the iund IN Court paid
TO the assignee bankruptcy and the attorney ana
counsellor of the assignee is entitled TO be paid Of
suit and counsel fees
MacMahou for assignee, Henry 4. Dawes for A. T.
Stcwart's