The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-08-01
icTrR FAVORED CREDITORS
-.rsrrr ron \. c. SCOTT WANTS
=. EQUAL DIVISION OF sPOILs.

"A
..,,ton riled in the Superior Court
lin. That Assignments Made by
a.. bankrupt 20 Dixon, Mitchell
IN re Declared Null and Void.
'r.,stec Alleges That the Assign
.ts We're Preferences, Made
-nten the bankrupt Was Insol-
,.rt and Are Hence nIeSnI-Case
presents New Question in Bank
,,,tc,-Other business Done by
Ipdee FaIligant.
An interesting phase of the bankruptcy
s,...oe A. e. Scott had its first develop
men. in the superior Court yesterday,
b., Trustee W. r. Leaken filed petit
.,-- ID, rqve certain assignments that had
,.s., m,J, by Scott to the firm of Dixon
1f,,bsl & Co., prior to the date of filing
a. his appanluon in bankruptcy. set aside
ami declared null ana void.
vr Leakeu recites that he is the reg
.,1sr.v appointed and constituted trustee
f,- tile creditors of the bankrupt and that
In his official capacity he was authorized
bg t1e referee in bankruptcy Hon. A. H.
lacDoneg. to bring the suit. He then
goes On 10 euum, rate the facts upon which
his clus, Of action is founded.
IL is said 10 the petition that on Jan. Il
SCOT was Indebted to Dixon, Mitchell &
co }2Ga87 That on or about that day
he executed TO the firm 10 which he was
indebted an assignment of a claim against
d w owens to the amount of 81 1887.
lp5n when il was afterwards found that
only N1HH was due and this latter
amount was paid by Mr.. Owens. At the
same time Scott executed to Dixon,
Mitchell * Co his interest in suits pend
rz in the city Court of Savannah
agans. Mrs Honoria Foley for $6S9 and
against percival Mcintyre for $500, which
suits are stiu pending.
1t is a',eg that at this time Scott was
in.0yent, within the meaning and intent
o The acr oil bankruptcy and the statutes
o. the ate, that Dixon, Mitchell & Co.
had good ground to believe that this insol-
,euey existed and that the assignments
Ws.p made with the intention to prefer
the particular firm over other creditors
Tie other creditors at this time held claims
to The amount of more than Sc 600. The as
-nmeIIs lre cf0re, al alleged 10 be No
both under he act Of bankrup cy, as beng
preferences Of W hich the preferred credit
tors Wf,e aware, and under the laws of
tl5 -ta,c as having been executed with
on lae forua lilies that the state law re-
CURES
in supp TT II the contention that Dixon.
NJ A,h Sc 90. were aware of the fact
tlat hey Were receiving preference over
1e other creditors, It is charged that at
the tHe OF the assignments to them they
c1t.I.a mo an agreement with c. A. Cox,
anoiber of the creditors, by which they
were 60 pay 10 him an amount of the
money re1lzed On the assjg lments proper
l1ndi 10 his claim as compared with theirs
ana t.2l as part performance of This
agreement they have already paid TO Cox
9 t4 is report on of the money recciv-
ed from Mr. owens 1t is contended that
tbls aet shows that the firm knew that il
V's 10 be preferred and hat its willing
| heS5 10 acc pit part payment Of its claims
Is eYNeNce II the fact that 1t had knoWl-
elee Of Seett's insolvency.
The Plaintiff therefore, asks that the SIS
s'suments he all set aside as void and iile-
e3D as designed TO prefer particular cred
ll9is ever oiaers while the assignor is in
condition of Insolvency, in contravention
| W we act OF bankruptcy, that the plain
.I nave judgment against the defendants
laf '4e amount they have already received
nom Mt Owens and that the defendants
ue required TO transfer to him. as the rep
resent i've of all the creditors all real or
Fo'ehded nights that they may have in
u SUI ftnGine in The City Court against
aus 9.ey and Mr.. Mcintyre. The plain
VaF a