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

Judge Ward Hunt Associate Justice OF the United
Btates Supreme Court yesterday, filed decision In
tho Circuit Court for this dstros the suit OF John
Il Piatt, assignee IN bankruptcy OF Simeon Leland &
Co, against Alexander T. Stewart The suit was
brought 10 set aside conveyanccs OF real estate and
shattcl mortgages the furniture of the Metropolitan
Hotel made by the Lciands TO Mr Stewart for
Arrears of On the 24th OF March 1871, Apeton
In bankruptcy presented by George +. Bellows, =
creditor, for adjudication OF bankruptcy against
Leland Co, and the adjudication made on the
1st Of April following. The Lcands kept the Metro
potan Hotel under a lease from Alexander 7. Stewart
Al tho time OF The bankruptcy they were holding
under lease which to expire the LIST OF May,
1871, at an annual rental OF s's, lS5 The lease
provided for first mortgage and lien on the
furniture chatels OF the hotel for security for
the rent, the hen and the mortgage to be renewed
yearly, thirty days prior 70 Both April with
additional! nrst hen on additional furniture. On the
FIRST day OF Juy 1870 the lesseos failed 10 pay tho
rent due, and from that time until the bankruptcy
they were IN arrcar, On the 2+th day Of January,
1871 houses aca Crosby and Jersey streets
in this city, and ihe 18th OF February Nos 1877 and
l39 Prince street, we're conveyed ny Charles Leland
Alexandee T. stewart On the 4th OF February. 1871,
the Thomas Farm, in wesches,er county, WAS con-
veycd by ruen Leland to Alexander 7. stewart The
arrears this time SOL oOl 40; and the
vae'4 'Ec estate s43 600 and above the
arrrA- The validity OF these conveyances and the
chatter mortgage was impeached by The assignee who
lnsis,cd that these pieces of property conveyed
by the bankrupts within four months preceding the
iaise ,hoeo'euhess ana 10 irouu OF the provisions
or the Bankrupt act The decision that the
questions be determined are the Iclands an
msolvenl condition when the convcyaLces were taken,
ana II MIR. Stewart and his agent, Mr. Hilton. had
reasonable cause TO believe them to be thus nsolvenI
MIR. Stewart and Mr., Hion testify that they had no
doubt oil the responsibility OF the clands at thus time
Justice Hunt says that 1t requires confidence
suppose that Mr. Stewart WAS willing 10 take from
solvent debtor properly he did want payment of
good debt and TOR the purpose OF accommodating his
debtor business men who act upon tins principle
Is
10 suppose that Dir. Hilton gave this advice, that
Mt stewart acccded to ", As TO The solvencv OF the
Leands, Justice Hunt says that te thinks that IN
January February, lS7l The hrm was irretrevably
inso!vcnt and that Mr. stewart and Mr.. Hilton
hal reasonable Cause 10 pciicvc the Leapds in
solvent as required by law, and that Mr.. Stewart
chargeable witn such knowledge In March, 1871,
large number OF executions and judgments having been
ootained against the lelands, the Unci states Mar
shai was directed to sell the hotel furniture public
auction TO AVOID the injury which would result from
the action OF the conflicting claimants. The pro-
ceeds OF the sale were S26, S67 go, which is
co.t Mr.. Stewart claimed this by virtue of his chat
Tel mortgage aud the renewal thereof Miller and
Con.sr and the other judgment creditors claim by
virtue of their execution levy. The assignee claims
that all the hens and claims mentioned invalid un-
der tho Bankrupt act and that each Of them is sus-
pended and overrIdden by the title OF the assignee in
bankruptcy With regard to the validity of the judr-
mcnts and executions the decision holds
them to be valid; that they were for just
debts and that the judgments were obtained not
only without the aid and OF the debtors
generally in spite OF their opposition With regard
the chattcl mortgage the law this point explained
the decision holds that Mr.. Stewart has lien upon
the proceeds the sales of the by
his chattc mortgage. The further question OF
The right o! Inc assignee to MAINTAIN action THIS
Action rs justified although the assignee does not clam
BY virtue OF tho judgments ard executions but
10 avoid them. They do exist. however, and valid
liens and arc by law represented by the sssignees II
think" says Justice Hunt, .they sustain the right
Of action Of the assignee against the raudu cnt
mortgages Again the assignee has a standing
In court upon the point OF the real estate
sopveyances. The decision may be summed up as
lowsrhc conveyance of the real estate 10 the
o; f33 900. above the mortgage made by :. Leland X
Co to A. I. Stewart account OF OF rent
void under the Bankrupt act, and the assignee is
titled to the value thereof The chattei mort
gage, under which Mr.. stewart claimed liens the
furniture security for rent, VOID IN law. Ger
tain executions, levied on The furniture prior TO the
bankruptcy, under authority OF late the
United States supreme Court valid liens entitled TO
be paid. Tho residue of the fund IN Court 10 paid
TO the assignee bankruptcy, and the attorney ana
counsellor of the gnee entitled TO be paid of
suit and counsel fees.
ID MncMahon for assignee, Henry f. Dawes for A. T.
Stcwartis executor.