The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-26
New Trial In jerks Case.


ruptcy case gives a new trial to several
OF the defendants, but upholds the Hen
nepin county court in it's findings that
$4,000 shares of stock in the American
Iron and Nickel company held by jerks
as trustee for his brother in law, Ell
bridge, really belonged to jerks and
should be included in the assets. AS to
the other nonresident defendants for
whom jerks held stock as trustee, the
court holds that the facts do not con-
clusWely show fraud, and that these de-
PENDANTS may own the stock in good faith
The Judgment is. therefore, modified, and
these other defendants given a new trial
The syllabus in the case is as follows:
Charles r. Fowler. trustee in bankruptcy of
George w. jerks. respondent, George W.
jerks ct al, defendants, Lewis B. Eldridge
Nickel company ct al, appellants.
First-Section A of the federal bankrupt act
provides that in case of vacancy on the reopen
the creditors of the bankrupt shall make new
appointment, and that II the creditors do not
make such appointment the court shall do SO;
held,
(a) The appointment Of such trustees upon the
reopenins Of bankrupt estate without prior
action on the part of the creditors will not be
considered invalid in collateral action.
(b) Where such bankrupt estate was reopened
for the reason that the bankrupt had frauduiently
concealed certain personal property and had
failed to schedule the same. the effect was SO
far as the bankrupt and his creditors were con-
ton before the court as they were before the
estate was closed and the bankrupt discharged
Title to the concealed and nonscheduled property
did not revert in the bankrupt after his dis
charge SO as to deprive the court Of Jurisdiction
upon the reopening Of the estate.
Second-In action brought by such trustee
to have himself adjudged to be the owner of
certain shares of capital stock which had been
fraudulently carried III the name Of the bank
rlpt as trustee and In the name Of other parties
for the Of eoneealing the held
finding of the court that all of the stock appear
ing upon the books of the company In thename
of the bankrupt trustee and in the name of
defendant Eldrtdge, was in fact the stock of the
bankrupt.
tb) The evidence was not sufficient to justify
the court in finding that certain non resident
their names upon the hooks Of the company for
the fraudulent purpose of assisting the bankrupt
in concealing and disposing of the same
Third-The evidence not sufficient to JUS
tify the court in finding that certain shares of
stock belonging to the bankrupt had been fraudu-
lently surrendered to the company and that
the company received the same for the purpose Of
sliding and assisting the bankrupt in disposing
thereof.
Tourtll-Whether such company had legally
sold and transferred its property to foreign
corporation in consideration that the stock should
be surrendered, and that equivalent amount
Of stock in the foreign company should be is
the trial court and the foreign company was not
3 party to the action and the evidence was not
eers an othe a the
rupt, were guilty of fraudulent conspiracy to
assist the bankrupt in disposng Of his stock.
Fifth-Certain on-resident creditors were
made parties to the action by constructive service
of summons. but they made general appear
ance and were in default for want Of answer
to the merits. but such default did not excuse
the plaintiff from sustaining the charge of con-
spiracy and fraud by fair preponderance Of the
Judgment modified. Lewis, J.