, 1880-06-03

an assessment should be made on tho STOCK
holders m to mcat the, liabilities Of tho bank.
hss linlillty came within tho operation ot the
@ 0 n ater efsitors by e
terms Of tho composition. ,,, T.,
Jutge HlodgEtt sntl he did not concur ~
TINT position. Tho lnW provided that only
tbose creditors should 10 bound by y eoll-
aHoants S'st OF the debts due them, were sllowl,
~ tha statement OF the debtor produced Mt |
the Ii m composition nlcetlng. Tile proceeding to
obta!n adtscllnrgo must he strictly construct.
I'D tic bankrupt mMst substa,nttinll{ comply
enf. I " When the composition meeting
an %s' tho TIC stock, and the liability was
onIy contingent; Even adm,fittlng gro,I fsnt si,t
liability Soa b f1G95gG n n4r "
obtain afi that result, the taMkrupt must IN
e!0de such contingent liability In his state
nsnt r ot debts. Tic creditor holding, such
Contingent liability must l'Mvo notice tlMt =
discharge from such liability was songnt, g
steps necessary t0 sccllre q. discharge from
sNcll liability he could not be relieved from
Il merely because he had been discharged
from payment In full Of hts other debts, and
Judgment would go against hiin "a IT, f9r ie, the fill
erest from July i. 1879, making s7,sao.so III
The saU,e Judge also decided another cnso
between the sRine parties brought on two
s9s S,s ySsa S Ry sssesD?aH Ul IS ths sa ssi%S So
Is 1871, with pc. cont interest due tn sixty
DAYS, the other for $4,000, dntcd Nov. II.
lSi7, due III sixty dnys, with 10 per ccnt IN
tesest. Hoth notes were secured by collhter-
sppl,iea ,l S, Oh ths notes, But leaving i balance
die. Tho dcferse to this as TO tho other suit
was q discharge by composition II bank
ruptcy The bank was represented Mt tlso
meeting and votetl in favor ct the consposl-
BAUM, % but not as to These notes,
wilcii were classed III his schedules MS So
cured. Greenebauln claimed TINT tho bank,
by its act!o1l consented to bo treateft rs 4
flllY-secured creditor with respect to these
the unsecured cluims only. 1t n,is!etl him
into believing 1t relied wholly on the seeeurl..
Ties It held for the notes. Tint 1t w0nld not
now DO allowed to sue for the balance after
eshaustng TIC securities. laying negieeten
the balanco in bankruptcy. Tl'o Judge said
Cayanna v. Dassett, decided by Judge Dyer,
where It was, held thnt Q secured creditor
hIs security and come IN and prove hts
claim, nor was It incumbent OH him to have
his security valued and then make proof OIL
The balance Nor Wns h[s future to 90 50
efluencg that lie Intended 10 rely WHG!ly OH
h,s security. The bankrupt wus bound to
know t!lcre was sucli Il contingent liability,
md should have colisItioretl It it making hfs
tolnpostion otfering. Judgment would t1,erc-
fore BIZ rendered foT the TolnaIuter due OF,
the notes, but conditioned THAT the same
cent OF tia sannc. tfia snino rs though 1t liad
been proved IN If, bankruptcy.
1:- o:.-
THE CHICAGO Il IOWA ROAD.
1n1aa nas1.., ,...,aal1o,. ,,as,,tna. An
yuaso ltoseta ycsiefaay t.otsl'.,K ~
elted the demurrer to tho petition In tlio case
Of tho People OK rel. Shumway md Others
aoainst Il. q. NJontnny. :Iosnnh Rc1slng
Ala, 1Iai,roa Hf,t,ar T.
r ~ A"ol., tao''li1s M'Asi' -
Brady d. B. Waterman, ont
Geo. W. Krotzingor. This was petltto,
Originally hnUun in thu Criminal Court. mt
1hen ,ocon H., o,'omes, ~ ~ ,,om,,c m tna C,rcni
comr. "v" oy e.a'so w ~ 'no .,so ,,ssh
1atr-iof tae pafpose ol tesllne tae Elea
Chicago & iowa Railroad Company. A gcn
mi Jennrrer ,vos tlln,I m savaroi grounds
rha is,I... 80, W. nioa ~ ,1.in., e., a',i
'uase nel1t tlat ~ tao petlL'oH WIS ~.
Could not controvort the right OF ~!