The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-11-24


for merchandise amounted to about
1000. none of which We're due until
January l. 1896.
The practice in legal circles here
was to abandon claims when they were
not due Attorneys Warren & Knapp
representing merchandise creditors tO
the amount of about $4,000 issued at
tachments under the act Of 1869, and
legal steps to dissolve the attachments
We're pending until yesterday.
Judge Archibald in his opinion says
that fraudulent failures are becoming
too frequent A layman has no trouble
in prOnOuncing them fraudulent and
the courts should not be less astute
The judge holds that where goods are
delivered to a common carrier In an
other state and the vendee pays the
freight, the law of the state where the
goods are delivered to the carrier APP
plies, and in New York attachments
lie when insolvency is apparent. re-
gardless of the original terms of credit
MAY RESCUED THE SALE.
Under the Pennsylvania law he holds
that the theory advanced by Warren
4 Knapp that the vendors may rescind
the sale and proceed on a common law
count for goods sold and delivered is
sufficient to sustain the attachment.
The opinion is the most vigorous In
its language of any ever filed in the
courts of this county, and Is regarded
by lawyers as step in the direction
of better protection for creditors. II
was the topic of the day in legal and
business circles. The opinion in the
case is as follows:
This case turns entirely on the facts
and a full view of them, therefore, he.
comes necessary. They appear from thu
evidence to be as follows: Mrs. Hannah
Driesen, the defendant. for several years
prior to December 1895, was in the gen,
eral clothing business IN Scranton. The
store was managed by her husband, Louis
Driesen, who had general authority to act
for his wife, but Mrs. Driesen also took
an active part in the conduct of the bust
ness. On Dec. %. 1895, eight confessions Ct
Judgment We're entered against her In
this court, amounting to over $4,000, up
ward, on which executions We're imme
diately issued, the stock of goods in the
store levied upon by the sheriff and the
whole sold out at public sale. Dec. -. fol
lowing. All Of these confessions of judg-
ment were executed to relatives and
friends and with one exception bore date
few days prior to their entry.
FAILURE WAS FRAUDULENT.
The conclusion to be reached from ali
the facts Is evident. Without closing Oul
eyes to the manifest outcome of them
we cannot but say the failure was a
fraudulent one. The validity of the jidg
ments by which it was effected is not in
vOved in this proceeding and we do moi
pass upon them. 1t is the purpose of the
defendant in confessing them with which
We have now alone to deal. Assuming
that they represent an honest indebted
ness. still the evidence shows that they
were given without suggestion or solici
tation and We're purely voluntary on Mrs
Driesens part. Even taking her story
of expense and business losses, neither OF
these involve or discharge any such finan-
cial pressure as compelled her to the steI
taken; but discrediting the story in tn,
light of her repeated statements to tho
ing to justify it.
If we do her injustice in this conclu
sion. and We have little fear upon thai
score, why have not the facts which
look SO decidedly against her beer
cleared? What has become of the money
realized from the fall business running
into thousands of dollars? 1t does not &c
to say that it has been paid out to Other
creditors; such payment should be proved
1t is said that the checks have beer
lost in the disturbance incident to the
sheriff's sale: but we discover no such
disturbance in the defendants business
| as that; it has in fact gone on altogether
too undisturbed to bear out such a sug
gestion. If not indeed to wear the face Ci
an honest transaction. Where are tn,
books of the business. which would show
the state of her cash and merchandise
accounts? 1t is asserted that she had nc
books and never had; we do not believ,
it; the evidence is that she had. Mr.
Kaufman saw and examined them and
| went over the accounts which they con
tained, and they were seen in use at the
store by others.
PART OF A GENERAL SCHEME.
But the facts carry us even deeper
than this. Not only was there fraud In
the immediate failure of Mrs. Dresen ant
the disposition of her property which II
involved, but we are justified by the evi
IN, tt,u ttp,fNl
a general fraudulent scheme of which II
was the elimination and crowning act
From the time that Mr.. and Mrs. Drieser
began their seasons purchases they wcr,
manifestly getting ready for the final out
come. This is the reasonable inference tC
| be drawn from the course of events inter
preted in the light of the failure itself.
AS the outcome of the whole evidenc.
| large stock Of goods obtained upon false
credit fctitiously secured: IA forced sale OF
voluntary confessions of judgment to
| family and personal friends Just at tn,
seasons close. and at the time so planne,
| that none Of the general creditors are ap
parently in shape to interfere: purchas,
of the whole stock in bulk in the name OF
! member of the family who does not
himself pay the money and seems to know
very little about the transaction.
These methods have become SO frequent
and notorious in a certain corner of tn.
| business world as to be the subject OF
common observation and comment. Tn,
ordinary man has no difficulty in pro.
nouncing upon them and the courts ought
to be no less astute in understanding and
dealing with them.
When transaction is stamped as this
Is with all the ordinary badges of fraud
without clear and satisfactory explana
tion the parties who engage In it must
expect to have It judged accordingly. II
1t is not a fraud as it appears. let then
free 1t from the imputatiOn; a lame and
halting story will not do. With the affairs
of the concern covered up in missing
evidence grudgingly given such as W.
have experienced here we cannot be ex.