The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-07-16
IMPORTANT TO BANKRUPTS.

The firm of Wallacn 4 Mayer made an assig nmcnt
TO Frederick II. Lewis Tor the beuedt OF creditors.
Soon thereafter, and before proceedings In bank
Yuptoy various creditors obtained judgments against
the assignors the State courts, on which executions
were issued and delivered to Sherin Conner, who by
virtue thereof levied the goods assigned by Wal
lacn l. Mayer TO Lewis. Upon being indemnifed ihe
Shern sold the property under such executions and
paid the proceeds 10 judgment creditors In tho
order of priority. Aferwerd. aud within the time
fixed by The Bankrupt law involuntary proceedings
In bankruptcy were commenced against Waliach q
Mayer, upon which they were adJud2ed bankrupts
and ssssignee at Their assets duly appointed me
lssignee In bankruptcy, by Mcssrs Kurzman Yea
ignee State law, and against tue Sher1
and the judgment creditors asking 10 set aside tho
assignment OF Lewis, and TO require him and Inc
Hnerin and the execution creditors, all 10
account 10 the assignee IN bankruptcy ior the
value oil the goods 80 seized aud sold by
the Sheriff The matter came before Judge Choate III
the equity branch OF the United States District Court,
Tor plaiutn, MT. William Pusney Tor me assignee,
Lewis, Mr.. Bookstaver on The part OF the Sheriff. ana
Mcssrs. RegensourRer Taylor Tor the judgment
creditors. A decision was rendered In he case BY
Judge Cnoate yesterday, in winch he holds that the
assignment must .be SET asidc ana al accounting
ordered; that Lewis, the assignee under the state
law Is not bound 10 account for the goods taken from
hn by the sbern out only Tor any other assets that
came hts hands thuL the Sheriff, and the Judgment
creditors VINO indemnied him, must account Tor The
vsiuc oil the goods, except Eiliott q. Cowdtn Co.,
wno although they gave bond oil indemnify, with
drew II before The sale was made BY tue sner. The
Judge hods respect 10 the last named parties that
alter such withdrawal. the sheriff WAS not bound 10
Sell uuacr their execution, aud his dong SO was at
his own risK 90 tar as they were concerned.
SUSTAINING A COMPOSITION.
Choi Justice Waite has Just settled some very In
tercsting questions IN bankruptcy compositions IN
case recently argued before him by Mr. Melville Ii.
Regensburgsr favor OF sustaining tho composition,
ana James :. Stcxrns aud Cepnas Brainard opposed.
IL wronkow L. Co., were doing business IN New York
and Caliiornia-Wro residing Ia New York,
hogan in San Francisco. The debtors were forced
into bankruptcy In tnis district and offered
composition OF twenty per cent In deferred
payments, and ia addition 10 allow The
crcaItors TO realize the firms real estate.
A number OF the creditors opposed the composition.
Judge BiatchiOrd overruied Inc objections and con-
hrned tho position. The creditors Appealed. On
appeal Inc Cniei Justice hOlus that the efer
proper one; that the District Court had properly
auIred Jurisdiction OF the debtors; that tho abseaco
Of the debtor Hogan from the composition meeting
properly excused by majority OF the creditors
NJ the composition meeting; that nothing short oil
fraud gross error la judgment should call into ex-
Tue jurisd ction oi the Appellate Court in these
eomposition cases; that creditors who ia 10 prose.
cute their rights these composition meetings
not nave teicf from the Court on appeal, and that
unexcused debtors need 10 attend The nrst meeting,
hut NJ tho second CON position Cases.