The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1893-01-05
CAN PAY HIS DEBTS.
Therefore Cannot Take Advantage of
the Bankruptcy Law.

the Bankruptcy Law.
Chief Justice Judd has rendered
an opinion in the matter of W. H.
Aldrich, of Honolulu, petitioning to
be declared bankrupt. On the 10Th
of December Aldrch appeared be-
fore His Honor and made oath to
petition in the usual form, that he
was indebted to divers persons in
sums amounting to three thousand
dollars. or thereabouts; that such
debts had not been created in con
sequence of defalcation as a public
officer, or executor, administrators,
guardian or trustee, or while acting
in any other fiduciary capacity, and
that he was bankrupt and unable to
meet his engagements with his
creditors. No testimony was taken
and the usual order adjudging him
bankrupt, etc, was taken out and
the 9th of December set as the day
for proof of claims and election Of
assignee.
On the 23d of December a motion
was filed by Henry Davis on behalf
of himself and torty-thrce others,
creditors of the petitioner in bank
ruptcy, that a rehearing be granted
and that the order adjudicating him
a bankrupt be vacated for various
reasons, which have already been
published in this paper. The chief
reason was that Aldrlch has vested
interest under the will of his father
lately deceased for property amount,
ing to quarter of a million dollars
the knowledge Of which impaired
by petitioner himself having been
the cause of their giving him credit
At the argument of the motion OF
the 18th ult. copy of the will OF
petitioners father, who lately dice
in California, was shown to the
Court, by which it appears that the
debtor is entitled to one-Gourth oil
his fathers estate. 1t was admitted
that this interest was large enough
to discharge all liabilities in a short
while, if available for that purpose
but the estate is in California in tn,
hands of trustees, and, in the articl,
of the will creating the devise, alien
alton, anticipation, attachment, etc.
of the interest of w. N. AIdrich ar,
forbidden. 1t also appeared that al
attachment levied on the household
effects Of the debtor, to satisfy
Judgment of the Police Court, wa
what induced the debtor to declar,
himself bankrupt.
Mr.. Peterson for the debtor con
tended that there was no difference
between insolvency and bankruptcy
and that inability on the part Of
debtor to pay any of his just debt
for ten days after they had matured
or any of the other causes tina
would authorize a creditor to peti
ton that his debtor be declared
bankrupt, would authorize tn
Court to adjudge the debtor bank
rupt on his own petition.
Mr.. Hatch for the creditors claim
ed that to entitle debtor to tn
benefits of the bankrupt law h
must be actually insolvent-that j!
have not sufficient property to pa
his debts-and a person in Mr.. A
drich's situation with the large vest
ed interest in his fathers estate 500
to be realized upon, even withou
money on hand to meet his prcsen
engagements, cannot be considere
inSOlvent.
The Court regards the ease as
peculiar one, owing to the almos
impossibility of the debtors intere,
in California being reached by tn
assignee if the order making til
debtor bankrupt should be carrie
out, Upon the statute the Court
of opinion that, as man will not !
permitted to take advantage of h
own wrong, so, after failing or r.
fusing to pay his just demands fl
ten days after they mature, or l.
other schemes mentioned in I'll
= opinion for keeping his creditors OF
: of their dues, he cannot come int
= court and allege wrongful acts of h
1 and ask to be adjudged Il bankrup
Y The opinion concludes: The sta
r ute of bankruptcy is meagre upC
( the question of what shall suffice
Q case of Il voluntary bankruptcy a
70 il says is that a person owing deb
+ To the amount of $500, which deb
t have not been contracted in Il iidu,
{ AIRY capacity, may file his sworn pet
ton and ask to be adjudged ban
rupt. No opportunity is given
2 creditors to oppose the appllcatio
!. But the statute must have a rraso
J. able Interpretation and find Tia
y il means that petitioner to be e
n titled To be adjudgod a bankru
must show inability for want of pr
= perty to pay his debts. II bcir
shown to my satisfaction that N
Aldrch * not in such a position,
vacato the order declaring him
bankrupt and all orders in this mi
ter thereafter made
Mr., Peterson has noted an appc
against this opinion 10 the SupreI
Court in banco,