The morning call., 1893-12-15
ISLEY'S MONEY
Suit of His Creditors
Successful.
Judge Morrow DEGREES That the Es-
tate Must Be Sold in Order to
Pay Just Debts.

IL is Just possible that the creditors Of the
firm Of Linforth, Kellogg & Co., OF which John
Bensley was the moving spirit and moneyed
man, and which went into BANKRUPTCY in 1877
may yet get their just dues. Tie firm failed
for upward Of S230.OOO, OF which amount the
available assets of Linforth and Kellog paid
about 4712 per cent. Bensley paid nothing
buttransferred his property to his relatives
and finally, IN order to get il back into his own
hands, agreed with the assignee Of the bank
fupt concern, that If no suits were brought he
would pay The remaining 5212 per cent due
This he never DID. nor did he pay any part Of
Il, but took advantage OF the lenieDcy accorded
him by his creditors TO still further conceal
and dispose Of his property SO they could not
reach il.
: a little over two years ago Bensley died and
few months later mis- widow. who had been his
chief alder and abettor in his frauds. followed
him, leaving four heirs 10 an estate worth sew
eraf hundred thousands of dollars. The estate
passed into the hands Of James c. PenDie, then
Public Administrator, and ii was not until
he secured the books and private correspond
ence OF both Bensley and his wife that the as
signee Of the bankrupt firm saw his way clear
TO proving that Bensley had concealed his
wealth in order TO defraud his creditors.
A suit was at once brought In the United
States District Court TO have all conveyances
made by either BeDsey or his wife set aside
and the property sold for the benefit OF the
creditors of Lnfortb, Kellogg g. Co. The trial,
or rather argument of the MOTION occupied the
time OF Judge Morrow several DAYS last week,
and THE CALL published the full details of the
fraud as shogn by the correspondence, diaries,
books and memoranda OF Bensley. just about
the time the case was submitted James c. Pen
ME died, and the heirs 10 the Bensley estate,
namely, Bertrand q. ChandOs, Sarah L. Hard
esly Lucy RouDIree and Jennie Goodrich, heirs
Of Marian l.. j. NJ 3 Dsley, were substituted as
defendants 10 bis stead.
In delivering his opinion yesterday Judge
Morrow said that the condition OF the estate,
coupled with the deah OF ex-Public Admins
traitor Pennie, caused him TO render an oral de.
cision rather than TO spend the time necessary
TO write an opinion. Briefly reviewing ne case
be said in substance: In this action The Oil Of
equity filed by the plaintiff, Lloyd, ssignee OF
the bankrupt firm, alleges that John Bensley
frauduently concealed his wealth to avoid pay
ing bis creditors.
., 1t is urged in objection to the testimony Of
fered hrsl, that The letters between the hus-
band ana wife which are relied upon TO prove
the conspiracy TO defraud are In the nature OF
confidential communications. The court holds
that these letters were not written by the hus-
bandto the wife because she was bis wife, but
because she was his attorney IN TACT and MS
active agent In the contamination OF the varl-
gous oeais and transfers he made. 10 the sec
ono oDlection, that the assignee mas been guilty
OF laches In not bringing this suit before, ano
that the statute of limitations now stands as
. par 10 lnls SUIT. the court holds that the as
slgn"e could not, until after the death or Mr..
and Mrs. beusley obtain the evidence neces.
sary 10 prove the allegations OF the bill OF
equity. Bensey was out OF this State the most
OF The tlnle and when here refused, naturally,
10 furnish the testimony that would have led
70 MS own unoolng. In cases of fraud, such as
ibis, Il Is the opinion OF the court that the
statute OF iimiI ations does not apply. The as
slgnee had no knowledge of the fraud until he
mac access 10 the letters and papers, only Sc
cured amer The oealh Of Mrs. Bensiey. 1t
would have been better for Bensley ana better
Tor bis estate had he acted honestly and paid
the amount 10 his creditors be agreed 10 ray;
but all the testimony In this cas-. shows DELHI,
crate fraud In an endeavOr TO avoid the pay
ment OF bis just dues. The decree of the court
is for the plaintiff.
Tn attorneys for the defense made no mo.
ton, but after court adjourned announced that
the case would be appealed.