The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-09-21
THE POLICE COURT
JUDGMENTS FILL
Bankruptcy Proceed
ings Intervene lin
Case Lum Suk.
PROPERTY MUST 60 TO TRUSTEE
JUDGE EsTeE HOLDS THAT FOUR
MONTHS CLAUSE IN THE
LAW STANDS.
PROPERTY MUST 60 TO TRUSTEE
Four Judgments in Police Court
Against Estate Made Subject to
Subdivision r. Section 81 Of the
Bankruptcy Law

Judge Estee yesterday handed down
a decision in the United States Dis
trict Court ia the matter Of the bank
ruptcy Of Lum Man Suk In this mat
ter four judgments were given in the
police court on July against the Chi
naman Bankruptcy proceedings we're
begun on July II. High Sheriff Brown
had in the meanwhile seized the prop
erty OF Lum Man Suk in a store on
Nuuanu street To satisfy the judg-
ments and refused stoutly to give
them up. ". W Thayer. who was APP
pointed trustee by the court OF the
bankrupt estate. claimed that no prop
erty owned within four months prior
to bankruptcy could be withheld to
satisfy judgment or judgments. High
Sheriff Brown eontended that this ap-
piled only to Involuntary bankrupt
cies and not to voluntary failures. The
decision of the court explains the mat
ter IN the following manner:
The hearing in this matter was had
upon the petition Of Wade Warren
Thayer trustee of the above named
bankrupt. PRAYING this court for an order
10 be issued 10 Arthur NJ. Brown. as
High Sheriff of the Territory OF Ha-
waii. requiring him 10 show cause be
fore this court why he should not deliver
up TO said trustee, a certain stock of
merchandise in his possession belonging
10 said bankrupt. situated in store at
1857 Nuuanu street. in Honolulu. and
which the said High Sheriff held under
and by virtue of an execution issued
in pursuance Of certain judgments rem
dered on the Bird day of July. 1901. in
the District Court of Honolulu. Territory
of Hawaii ia favor of NJ s Grinbam
& Co. and against the said BANKRUPT
and portion Of which said stock of
merchandise the said High Sheriff was
about to sell at public auction.
The facts as shown on the hearing
appear to be these
On the nth day Of .Tulv. 1901. Lum
Man Sink. filed in this court in due and
regular form. petition praying 10 be
adjudged n bankrupt aud thereafter on.
the 18th day of July. 1901. an order
was made in this court declaring and
adjudging the said petitioner a bank
rnpt
Ii further appears that prior thereto.
to-wit: On the 3rd day of July, the
District Court of Honolulu. Island Of
Oahu. rendered four judgments against
the said Lum Man Suk. doing business
as Ghu Zip Company. in favor of III. 5.
Grinbaum & CO.. Limited. and execu-
tons issued out of said District Court
TO Arthur NJ. Brown. the High Sheriff
of Honolulu under which he took pos
session of the stock OF merchandise forms
ing n part of the assets of said hank
rupt and was about to sell the same to
satisfy said judgments when this order
10 show cause WAS issued,
The trustee of the bankrupt claims
possession OF these goods under the pro-
visions of Subdivision r. of Section 90
of the Bankruptcy Act OF 1898. the said
executions being issued upon judgments
rendered within four months prior to the
fling of the petition in Insolvency OF the
bankrupt and the order of adjudication OF
bankruptcy. while the High Sheriff claims
thar this is not case falling under the
provisions of Subdivision T. of Section
e. but is controlled bv the provisions
of Subdivision c. Of said Section g.
= There is no dispute as TO the fact that
this Judgment was obtained against the
ins0lrent within four months prior 70
the fling of the petition in baRkruntey.
and the adjudication thereon The point
raised by the counsel for the High Sher-
ia that Subdivision applies only to
Involuntary proceedings in bankruptcy
is not good one in view of the provisions
of Subdivision ! of Section l Of the
words
A person against whom petition
has been filed shall include persou who
has filed n voluntary petition.
tIn re Blair. 1S0 Fed Rep. as3a. in re
lesser. los Fed Rep 2tl3 IN ~ lesser
loo Fed. Rep. 4li2. in r. Riheards. rs
Fed. Ren c. G. A
There seems 10 be difference OF
opinion between some of the United
States Courts as 10 the construction to
Ne given to Subdivisions e. and ~ Of
Section Sc. which subdivisions are hope
lessiy in conflict; but | am clearly 81
opinion that nos only the weight 81 au-
fhnrity hut the better reasoning sustains
Subdivision r. where there Is any
question as to which shall prevail. and
this would seem 10 Re in accordance with
the well known rnles Of statutory con
Straction.
As WAS said by the Circuit Court Of
Appeals IN the caSe OF in re Richards ~
Fed Rep. $50
's'rhe two subdivisions &C. and r.
Of Section 81 Of the Bankrstptcv Aas fe-
late 10 the effect Of an adjudication %
bankruptcy rIson existiBz liens up5a the
property Of a Bankrupt acquired thecnSE
legal proceedings are irrecoueillnie and
anfagoniStic and therefore ii any ease
Of conflict between them tie f0rnsr
must give way 70 The latter
The court further saving.
All liens obtained throagh legal lfgD-
ceefifnes agaisSt an insoiTent 1ebtor with
in four months prior II the sling af =
IletisSon IL bankruptcy hy or sEainSt
him are anaullesi - his adjudication as
3 hsakrupt Irrespective Of the question
whether the dets0r Suffered 81 Harla tsesi