Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1907-05-09
nudge Mcwhorter on the Hurst Case.

4
In the case of Gerard D. Moore and
8. W. Washington, trustees in bank
ruptcy, against joseph F. and E. M.
Tearney. surviving executors OF Ed.
ward Tearney, appealed from the Cir
cult Court of Jefferson county, Judge
McWhorter delivered the opinion in
the Supreme Court of Appeals, re-
versing the Circuit Court. His opinion
in part follows:
]. Garland Hurst. of Jefferson county,
had been sheriff OF said county, and
| has become involved to insolvency. On
the 4th day of December, 1896, he con-
viewed by two deeds of that date, his
farm for consideration of $4,000, cash.
and his house aud lot in the town OF
Harper's Ferry, occupied by himself as
q residence, In consideration of $4,000,
cash, to his fathsr-in- law, Edward Tear
new, who was on his bond as sheriff.
| On the same day the deeds were made
| to Tearney the latter gave TO Hurst
check for SIS, 900, being 81 900 more than
| the consideration named in the deeds.
The deeds were placed by Tearney in his
safe and kept :there till his death in
March, 1902. BY his will Tearney APP
pointed his sons, Joseph, h. Nj. and
| George L. Tearney, his executors. Al
ter the death of Tearney his executors
| found the two deeds in the safe and
called the attention of Hurst to them,
who requested that they should not be
| put upon record for some weeks in or
| der that he might arrange some business
| that he might not be able to arrange in
case the deeds were put to record, as
| that act might precipitate crisisln his
affairs. The deeds were withheld from
record until note for 50, 500 made by
Hurst and endorsed by his father-in- law
| fell due, and the executors we're inform
| ed that 1t would have to be taken care
Of They then on the 18th day OF Sep
tenn Der, 1902, placed the deeds on record.
| In few days afterwards the said Hurst
| fled his petition in bankruptcy, and
was duly adjudged bankrupt on the
| 23rd of Septemb Der. On the ord day OF
October, Gerard d. Moore and S. w.
| Washington, trustees in bankruptcy,
| brought suit in equity in the Circuit
| Court of jefferson county TO set aside as
| fraudulent and void as to the creditors
Of said bankrupt, the said two deeds.
| The defendants, Tearney's executors
| and others, not including Hurst, fled
| their Joint and several answers, denying
| all fraud or knowledge of fraud of the
grantor on the part of the grantee in
| the execution of the said two deeds or
| in concealing the same, and keeping
them from the records, the executors
| claiming that after the discovery ofthe
deeds after the grantor's death they had
| withheld them from recordation in COM
| plianoe with the request as temporary
accommod ation for few weeks until
| he could get his business affairs In some
better condition than they were at that
time, Hurst stating that his Indebted
ness amounted to about $4,000, outside
of what he owed to Tearney.
There is no question that Hurst was
fraudulently attempting TO place his
property beyond the reach Of his credi-
tors and that Tearney had a knowledge
of his indebted ness to insolvency. While
it is claimed that he knew nothing OF
the Indebtedness Of Hurst beyond what
he owed Tearney himself, he was aware
OF his Indebtedness as sheriff to the State
of West Virginia and to the county OF
Jefferson. Tearney knew that Hurst
had been elected as a member of the
House Of Delegates and that he could
not take his seat in that body while he
was defaulter to the State as sheriff
for public revenues and, Hurst applied
to him in relieving himself OF such de-
fault thai he might be untrammeled
when he should present himsel for quail
ification as member Of the legislature.
To have placed the deeds on record at
that time would huve precipitated cri-
sis in Hurst's financial affairs at once as
it did when Fey were recorded on the
18th of September, 1902; his credit
would have been at once destroyed and
no one could have known this fact bet
ter than Tearney himself. By conceal
ing the transaction, Hurst's credit
would not be impaired and he was Gu
abled TO continue in business, holding
himself out to the community as the
owner of these two properties, when in
fact he had Invested himself of the bulk
of his property, and was presenting to
the public false basis of credit and OBJ
tanned large credits which he could not
have enjtye but for the conduct of
Tearney in conceallng the transaction
between Hurst and himself. When
Hurst received the 81 5, 900 from Tearney
it was to pay off the debt that he owed
the State for taxes, aud for which taxes
Tearney was liable on the official bond
of Hurst. The record shows that Hurst
owed Tearney in addition TO this indebt-
edness some $l6, 900. Tearney accepted
the two de Ids for the properties, and
instead of recording them, placed them
-. l. 10 70 nd Liant thor th ri hnnt
even the knowledge of his children ex-
cept Mrs. Hurst and her sister. Hurst
remained in possession of the properties,
managing them and controlling them as
he had ever done, taking the profits,
and in no wise accounting for them to
Tearney. The properties continued to
be assessed in Hurst's name and insured
for his benefit. During all the time
from the execution Of said deeds, Deem
Der 4, 1896, to the 18th Of September,
1902, when they were put on record,
there was no visible change in the pos
| session or management of said proper
ties, and Hurst with every appearance
of still being the owner Of said proper
| ties had in that time contracted debts
amounting to quite $4,000. Tearney
had lived more than five years with
these deeds in his possession, and al
| though he made will by which he dis
posed by items of his large estate, he
died intestate as to the properties con-
veyed to him by Hurst. The evidence
OF the fraudulency OF the deeds is nee
cessarily circumstantial-no sufficient
explanations are made in relation to the
| transaction.
The relations existing between Hurst
| and his faLher-in-law were of the closest
| and most cordial character. Tearney,
! who was man of considerable wealth.
was the father of Of the wife of Hurst
while Hurst was business man and had
been in prosperous circumstances, but
at the time of the transaction complain
ed of he had become largely involved,
even 10 insolvency; he had been elected
to an honorable position and his father
| in-law would naturally be inclined TO
assist him in placing himself in a posi-