The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1900-02-15

Referee in Bankruptcy Van wormer
this week handed down a ru, order
Ing b. Moses tn turn over TO the trus-
tees of the creditors of NJ. solomon e.
Co. all the assets of the said COM
pany. which he held as assignee of
the latter.
In the opinion accompanying the
rule the referee scores the assignee
sharply for converting some of the as
sets into money contrary to law. The
opinion follows:
On November %. 1899, M. Solomon and
company executed general assignment
for the benefit of creditors to b. Moses,
the deed of assignment was recorded in
the proper Office In the county of Lacka-
wanna, Pa, on December, 1899. On de-
cember g. 1859. an involuntary petition in
bankruptcy was filed In this court against
Mr. solomon and company and an adj
judication of bankruptcy made thereon
IVY the judge on December 30, 1899. At the
first meeting of the creditors held on
January 10, 1900, II. s. Alworth was duly
elected trustee and qualified by filing Il
bond as required by law. On Feb. I. 1900.
! the trustee demanded Of B. Moses, as
signee. that he turn over to him all prop
crty belonging to this bankrupt estate;
the assignee refused to comply with this
demand whereupon the trustee filed his
petition setting forth all necessary facts
praying that rule be granted upon Il.
Moses to show cause why an order should
not be made requiring him to deliver to
the trustee the assets of this estate.
| ALLEGATIONS ADMITTED.
On February 6. 1900, a rule was granted
| as prayed for and on the return thereof
an answer was filed by the assignee ad-
mitting the allegations of the petition
| and justifyinE his refusal TO deliver the
| assets by reason Of the assignment tn
him and Ills proceedings hereunder in
! the state court. which are set cut in the
| anwer. The answer admits the receipt
! by the assignee of sI.132.92 from the sale
of the property assigned to him and the
| collection of certain book accounts. II
| also alleges that property of the value OF
| $40 was levied upon by writ of re.
| plcvin at the suit of Rosendorf and com.
| cany commenced in the state court after
| the assignment. TO the answer there Is
| attached and made part thereof an
| account of the assignee showing receipts
and expenditures by the assignee. the lat
! ter, aggrcgatnS S62I.14. The answer con.
| cludes as follows:
81 therefore pray that the rule granted
upon me as aforesaid may be discharged
| ana If II is not discharged then that II
may be continued until such time as my
aforesaid account shall be confirmed BY
the court of common pleas Of Lacka
| wanna county. | further pray that Il
| said rule Is not discharged or continued
| that the expenses incurred by me as sci
| forth in my account hereto attached ant
| marked Exhibit A may be allowed by
your honor ard only such part of the
property of said assigned estate as shall
remain In my hands be ordered paid Ovel
| to the trustee
The questions raised by the assigne,
I'm his answer are too well settled to re
quire discussion. There Is no iurisdictiO,
In state court to administer the estat,
of an insolvent after an adjudication o
bankruptcy: assignees of insolvents seek
ing such jurisdiction in an attempt 4
defraud creditors, which Is clearly tn,
case by proceeding under voluntary as
signments will be summarly enjoned b.
this court. which alone has jurisdiction
to collect and distribute the assets %
bankrupts. This question Is so fully an,
ably considered by Judge Brown in r.
Henry Gutwiling. Am. Bankruptc,
Rep. IS. and Judge Wallace of the Unite,
States Circuit court Ib. 3sS. as to lcav
nothing more to be said.
a SHARP REBUkE..
| In this case we find the assets of Il,
bankrupts fraudulently in the possession
q Am. &. Rep. SO of one who has $
| Httit TtSdTu loF tne Ia" tndt ne convert
such property into money contrary (
law, and after he had notice of bank
ruptcy proceedings, and now seeks (
charge the fund in his hands with Il larg
amount for fees and expenses
| This he is endeavoring to do I'm tw
| courts. having filed his account i'm tn
state court for confirmation. and also /
this court asking for its allowance. TIL
state court has no jurisdiction to allO,
the charges and they cannot be allowe
in this court.
In re Gillblom and King. Nat. L
News Col, if sheriff holding propert
under an execution. is bound to turn
over to the trustee, without deducting hi
fees In re Francis Valentine compan,
= Am. Il. Rep. .22 then certainly on
. who has obtained the property of an III
solvent by a fraud upon the bankruptc
act, is in no position to ask the com
to recompense him for doing that whic
he had no right to do The assets of thl
bankrupt stock belong To the trustee
and the proceeds must stand in lieu Of I'll
property sold.
| In re RAYMOND W. Kenney e Nat. ]
News l43) the assignee has no color G