The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-07-29
kUNIz MUST SETTLE
WITH HIS CREDITORS
Cedar BendMerc an 'sPetition
to Be Discharged From
BankruptcyDenie

In affirming the decision of the
United States district court in the
bankruptcy proceedings wherein Oscar
KuntZ. a merchant of Cedar Bend, Ro-S
seau county, sought to be discharged
from bankruptcy through a voluntary
petition when involuntary proceedings
were still pending against him, Judge
Sanborn, Of the United States circuit
court of appeals, handed down an i'm
portant decision yesterday.
The court holds that a bankrupt who
has failed to apply for discharge
within twelve months after his adjudi-
cation of bankruptcy upon a petition
of creditors cannot lawfully maintain.
voluntary proceeding and obtain a
discharge from the very debts sched-
uled and proved against him in the in
voluntary proceeding while the invol-
untary proceeding is still pending.
E. A. Young, the st. Paul merchant
who was trustee of the estate in bank
ruptcy on petition by creditors,
fought the suit instituted by Kuntz, and
it was shown that Kuntz has paid only
SIS since being ordered by the referee
to pay to the. trustees $6,185.37. The
evidence showed that between Sept Is,
1898. and Dec. 81 of the same year a
deficit of $8,185.37 arose in KuntZ's ae-
counts, and that it had never been sat-
lsfactori1y accounted for. His creditors
had later asked that he be adjudged
bankrupt. sKuntz had applied in an
other division of the court-before
Judge Loehren-for his discharge as
bankrupt. The lower court had denied
the petition. and Judge Sanborn suS-
tains the action, Diminishing the volun-
tary proceeding without prejudice to
the petitioner beginning a new action
when the involuntary proceeding has
been satisfied.
A number of st. Paul wholesale mer-
chants We're Interested in the determi-
nation of the issue as creditors OPP
posed the relief asked by Kuntz.
Three Other Decisions
Three other. decisions handed down
by the circuit court of appeals yester-
day involved actions in widely sepa-
rated points in the district,
Judge Hook afffrms the case of Mar
tina Raphael. as administrative of Ma
thanial w. Raphael, appellant, VS.. The
Rio Grande & Western and other rail-
road and trust companies, appealed
from the district of Utah. The case
grew out of the purchase by Raphael,
New York stock and railroad broker.
of $4,000 of old second mortgage
bonds of the Wasatch & Jordan and
the Bingham Canon g. Camp Floyd
railways in Utah, afterwards CONSOLE
dated with the Rio IGrande & Western,
for less than $1,000. Raphael sought
to Eainul sales of the railroads made
twenty years. before. on the, ground of
fraud, to be allowed to redeem from
the second mortgage sales, and for an
accounting from the Dio Grande &
Western. The court could find no fraud
in the proceeding and declares that the
right of the appellant to recover is
barrad ,byg the Utah statute of limita
tons. The lower court is affirmed.
In. the case Of the United States
against the Detroit Lumber company.
appealed from the western district Of
bera and stone act claims We're ques-
toned, The government claimed that
twenty five employees and ten wives Of
employees of the Alexander Lumber
company, of the forty-four cases in
volved, had assigned their claims to the
lumber company. and that the paten-
tees really made their claims in the
interest of the lumber company, which
later assigned to the Detroit company.
The circuit court found that the De-
troit company had no knowledge of
fraud in the securing of titles and that
none of the pateptees entered the land
on speculation or made agreements
whereby title should i1ure to others.
The lower court is affirmed in a de-
cisien written by Judge Sanborn.
In reversing the district court for the
district of South Dakota in the case. of
John Lee Booker, appellant, VS.. Charles
7. Croker, appellee. Judge Sanborn
/ sends the case back for minor corfec-
lions. The case involved real estate
deal for the sale of thirteen acres of
land near Sioux Falls.