The daily journal. (Salem, Or.) 1899-1903, 1903-01-07

where money collected upon an exc
ou+ion issued upon a Judgment ob'
tained against the bankrupt WITHIN
tho four months period is paid over to
rho Judgment creditors before the nj
ing Of the petition in bankruptcy, the
case does not fall within the provisions
of 67f Of the Bankrupt Act, and that
aucb money is not recoverable back by
the trustee under section cob, in the
absence of proof that the creditor had
reasonable cause to believe that the
bankrupt. by suffering Judgment to be
taken against him, intended to give
preference.
5. The proper practice, where
levy has been made upon the bank
rupt's property under an attachment
granted within the four months pc
riod is for the trustee to move in the
state court for an order discharging
the attachment and releasing the prop.
erty from the levy the sheriff should
not be required to assume the respon'
sibility of releasing the levy. Hardt V,
schuylkill, Etc, Co., 8 Am. B. r. 479.
6. Upon the principle that in all
cases not within the provisions of the
Bankrupt Law. the State insolvency
laws remain operative, II was held in
Heron Co. V. Superior Ct, S Am. B. r.
492 (Sup Ct. CAD, that as to a mining
corporation which may not be adjudi'
Gated bankrupt, the provisions of the
State insolyent law applicable to such
corporations are not suspended.
7. In adopting the Interpretation
that will give to the words same
class" in section Goa relating to pref
erence. IT was held in Re Harpke, s
Am. 3. r. 535, that the holder Of the
bankrupt's unindorsed note is not de.
barred from proving his claim thereon,
because within the four months period
he received from the indorser payment
of another note, having reason TO be.
licve that the money therefor had
come from the bankrupt though in g.
rorauce Of his insolvency at the time
OF such payment.
8. That a unatic may not be ad.
judged a bankrupt upon the petition
OF his committee was held in Matter
of Eisenberg. Am B, X. 5ji, upon
the ground that the court had no juris
diction TO entertain such petition
Q. The powers of the court being
sufficient TO fairly protect the equities
Of the. individual creditors where the
facts justify it, It was held by. Shircs,
Dist. j., in Re Green, 8 Am b. r. 553.
that where an individual is adjudged
a bankrupt, parties to whom he is In.
debted. In connection with other per
sons as partners, may share in his es !
tate with his individual creditors, II
not appearing that there Is any solv.
ent partner from whom the debt can
be collected, nor any partnership as
sets 20 which the Arm creditors. can
look for payment Of their Just claims
10, That the amount disbursed for
attorneys fees by an assignee for
creditors, prior to filing his petition
IL the bankruptcy court, for the settle.
ment OF his accounts forms no part OF
the assignor's estate in bankruptcy,
was held in Re Klien, Am. B. r. $50.
and no summary order directing the
assignee 70 pay over TO the trustee
should be made as 10 such disburse.
ments,
H. The surety on a note who. after
the makers adjudication as bank
rupt pays the balance due thereon.
cannot be required as a condition Of
filing his claim therefor to surrender
preferential payments received by the
payee OF the note In re New, Am. |
B. r 800. holding that the latter part
of section 57i was not intended as a !
restriction upon the surety creditor.
l2 The right of a cestui que trust !
10 follow trust funds was considered in !
Re Marsh. 3 Am. h. r. $40. where it
was held that unless a trust fund.
the greater portion of which came into
the hands Of the bankrupt. as trustee.
several years prior 10 his bankruptcy
can be traced in some shape into the
estate which came into the hands OF
his trustee in bankruptcy the equit.
able owners Of such fund are not en-.
titled TO priority OF payment over the I.
general creditors, and upon the claim !
ants is the burden Of proof to show the .
fact.