The New York herald., 1877-07-08
IMPORTANT TO WIVES.

HOW THE SUPREME COURT DECIDES UPON
PROPERTY MADE OVER BY HusBANDs-1HE
CASE OF J. x. PLACE co.
WAsuISGToN, July Z, 1871
Mr.. Justice Miller delivered the following opinion in
the Supreme Court OF tho United States yesterday 1t
shows thai man In a prosperous business who may
purchase real estate out OF profits and transfer said
property his wife may be held the subse
qusnt failure, to have Withdrawn funds to which an
assignee in bankruptcy may lay claim IN behalf OF
creditors The decision refers to the late firm Of whole
sale grocers in New York OF J. K Place l. Co..
THE DECISION.
No 100. John L. Pnpps ell al, appellants VS. John
Sedgwick, assignee, so, ana one other casc.-Appea!s
from the Circuit Court OF the United states Tor the
Southern District OF New York These appeals
presented by two different parties, against whom de-
creos were obtained Ia the Circuit Court by the ap.
rup,cy OF James X. Place and James d. SparIman,
dong business in the city of New York
Place " Co. Tho controversy III the District Court
whore IL was commenced, anu in tho Circuit Court,
where II heard appeal, turned mainly ques-
of act, TO be determined by the weight OF evil
dence, and the most important part OF IT does so
here. The evidence Is vouminous ana complicated,
amounting 10 over eight hundred pages Of
printed matter. II cannot beeexpeoted that IN de-
liverng our Judgment we should sustain 1t by any
minute analysts OF this testimony We can prohtaby
do than state the propositions in controversy
and the results Of our inquiry upon them.
OPENING OF THE PARTNERsiIIP.
Place and Sparkman succeeding 10 the business OF
j. X ana f. b. Place as wholesale grocers commenced
business partners the Isl day OF December 1862
and SO continued until December 23, 1867. Their op
eratons amounted several millions oil dollars. On
the day last mentioned finding themselves iusolvent.
they made general assignment to Lewis W. Burritt
and Thomas i. Slelied.
BANKRUPT
On the 9th day OF February, 1865 they lled pc.
titon in bankruptcy under WHICH the appellee, Sedg-
wick. appointed assignee Some time alter this
the assignee brought his bill in chancery In tho
District Court for the Southern district OF New York.
where the bankrupt proceedings were pending against
the two bankrpts and sundry other persons supposed
10 have money properly which ought TO the
assignee, 10 have liens other claims on such
which settled finally much that was in controversy,
but reference to two important matters appeals
taken TO the Circuit Court and IL In regard 10
the same matters that the two appeals now before US
ALLEGED FRAUDULENT TRANSFER WIFE
The first of these, involved in case No 100, grows
out Of the allegation the bill that certain real es
tate, which we shall call the Fifth avenue property,
and which was sold under order OF the Court pending
the suit and the proceeds PAID court, was in
ana equity tho properly OF tho bankrupts and that
tho proceeds should 60 TO me assignee to be aanrs
appelees John L. Phipps Co., asserted cfaim 10
this property and the proceeds, which we VIII pres
entity consider. The District Court decided that the
Filth avenue property was but tair and reasonable
settlement Of James X. Place upon his wife, which
was not fraudulent to his creditors and ordered
the proceeds OF the sale 10 be paid to Phpps Co.,
who assorted rights under Mrs. Place On appeal the
Circuit Court reversed this decree And hold that the
settlement fraudulent TO creditors. and ordered
the proceeds o the sale, amounting 70 $o3 l6l ~ TO
be paid to the assignee From this branch oil the de
cree Phipps L. Co. appeal 10 this Court The Court
flu as that the sum thus withdrawn from the business
OF the hrm and diverted to the erection Of the resi-
donce Fiith belonged of right to the cred
iors the firm, and arms the in favor OF tho
assignee
PROPERTY RETURNED TIM WIFE.
But IL 10 held that certain property Ia Forty second
street involved in the suit against Mr., Pieces ex
ecutors cannot DO because II is property pur
chased with money diverted from the business OF The
firm, the Court ruling that where property OF The
bankrupt wrOngtuly in the hands of the wife Is found
IL may be taken by the credtors but where such is
found suit cannot bc maintained against the wile
person0a Tor money and as 10 this the decree Is
reversed.