, 1879-02-06
USING TRUST FUNDS.
TECIIA11QE.


Col. Cooper then salt that the mcmoriRlists
would proceed With tho third charge.
sfr. Campbell sail ttMt as to tint charge the
respondent desired to present an answer. The
charge was as follows:
That tho .ald Henry ". Dlolxett. whilst holding
tho ofllca Of Judge Of ths United States Nsslrct
knowingly narrowed md converted to hla owu
pcr,onal Use tnonsys hcloncn. In thu registry Ut
.sper!dfa'na-That tho .aId Henry ". n!oagest.
wcsc pent'nq In sald court prcsIdaa oter by him.
has, by The pDweF and influence Of his fudIcnl
ofllcr. procured diver Assgnccs If eatates in snch
lnlnkruntcy causes to loan 10 hnl. tho said llenry
y. niotsest TOR hia own porsonal USE. large suns
uf muney belonging to EHch cstatcs anu On dOPoa!t
tn the registry Of said niktElet Court.
Ito desired to call the attention of tho COM
mittco 10 the Law In TINT rcgani, which be
thought wns \ complete answer. The only
SECTION In the net relating to the registry was
that numbered In thu last edition Us I11 which
provided tllat nil moneys paid Into auy Court
Of the United States, or received By tl,c officers
thereof. lii any ease pending or ntllutIIcatcd lit
such Court, should be forthwith deposited with
s,cnse M 1s,sts Ss,taty Asss'aess5fF " #, n s,s or
thr name and to the credit nf the Court. Sec.
VJN provided how It atuulA DC drawn out, on
the cheek of the Judge, certified by the Clerk.
ses; ;slI determine! wlat M, Mas depository
provided tint II. Secretary Of the i'rcas-
nry. should designate QUO or moro d.
I'osLtorlcs IN each stnto for puhltc
SsS syty ss gegss tt II a. NstSss
by the sceretury Of the Treasury shouu be IT,
posttarlcs. It Fas quite anoarcnt from tho
bankrupt law itself that funds IN the hands Of
Assigners III bankruptcy did NOT fall within anv
vi t1lese AtctiUna. There were hut two scctiunE
III the bankrupt act to wtlirll reference need bo
nude, sers. h,a'0 md 6.UD OF tLr revision. which
were the sac. word {ur word. the old See. II
In the orgHal BANKRUPT act. sec. +, 40 required
tlau Asslguce to deposit tn0ncY received by him
belonging tO the estate Iii 2amt balk LII his nalnc
Us Assignee, leaving him IN entire discretion as
to what bank lie should select: und SEE. f,oG0
p,oa s s.'ss ws" as e. aa ts it5 sa.
ton or other pause, the Court might direct the
tctnpurafy Investment Of the lMuncy belonging
to such estate IN securities III bc approved BY the
,1uago ar segistrr, or might authorize IL to 10
.lcpnaltcd III Rny rnn7cnent bank upon such tr-
ttrcst, nut exceeding thu legai rate, MS tt.s tank
might contract with III. Asatgne1 to pay there
iii. FIlis showed eunclusiyclT thnt tho funds Of
the AAsGlee never went into the registry ut ull
| 81, thAt Ito cslarge, coupled With The tpecllra-
ttt,n, coula not be sustained IL any event.
| j. Mr. Culherso,, called Mr. tanlphelt's nttep-
tIon 70 Scc 5,NT.
Mr. Campbell said he hid seen that section,
which provided that my person WHO knowingly
4 Tcgtlyel from the Clerk ur Other otcrr vi th,
Court any money belonging ~ thy registry oi
tho Court was guilty of rmbez1enaent. Isut
bankrupt funds, by the law itself, never Nent
Into tbs registry OF thr Court.
Jndgo blodgrtt-Wtll The Committee allow
Ine siugle exclamation III that respect 1t
frequently has happened. In the adt,iMial ration
III tlie HahkruQt law under mv supcrvisiof,, liIat
what nrc called Provisional Assisnets. who arc
ttlrse Temporary appointcya Of The CURT pcnd-
ItE tls election Ut an Assgnce, have made
sates of cstates: In tlWsu easrs 1t taB frequent
" becn ordered that tllat money shall b1 paid
Into rourt. III which event II mont into the
registry oi tin Court; tut tile regular Aasi.neea
i,4ya aiwayA kupt their funds In such bauka ~
they chose to designate.