Putnam patriot., 1912-05-31

| bv the 0biecting creditors.
 That af the time of the conveyance the bankrupt was insolvent. He was owing ab8ut s7g0.U00. t0 about seven hundred creditors About si98,099 was
 secured. mostly by mortgages. Of the l remaining sGaa DOC about s2abVhy was
 in the form of participating notes. bout szH0 110 D special notes. and over s29H,- Ha0 gwen for mining stock. T be latter were payable ab8ut two years from their various dates and were falling dHe af various timrs. some Of winch ~eae nearly dHe at fhe time oI said convey aueez The assefs consisted 0f said mining stock, winch was -old HF the
 rr6-fee at far sale aF about s3H7, anu reaI estate Wortb about -l-H"a# the same being sold suh5ect t9 tae iacaH- bHaaeez at ab8Hi ##
 The bankrupt was -nf only A-alaeHt. bat Hopeie so. and t vas absolutely HHusslli IumaauF spoa fgs ham af fba tWe tg eeef 9ee5lHe -8l Hruf IAHt f a-e tms of sand raHee= aHesH f5e bankrupt fueW that hoe was ln
 rHH. THr les tH0HE 1I ffa HaUFUFf H @sdaaa.e B. l. 26. i as foiaess
 a e1 taat faHHg faf rom faaf A=555s sou owed 3t,@H5.5z.
 hat a-j sou base to pag lt HitaE
 Y. fl Wa-n dle.
 z. Hh#H diH vaa haze 55 G5scj tHa
 A. d9Jn haze anything at tae tiHe HeeaH-e rt eas ubt due=
 2. don ask taat. What property lid vau haFef
 A dldu have anything
 Q. You knew if. didu I y6u7 l ask i if Eou knew al tbat time that yaa dian have anything 10 offset this | 3laI2G7.5s that ] haye spoken of
 s Sure knew if.
 Ii appears from this testimony of l the bankrupt that he not ouly knew | that he vas insoleant but knew that | he ~as aboat s2O099O to the bad. The | bankrupt was good bookkeeper and | kept h5s own books in part and especial ! ly the treasurer $ account, and f he was l acquainted with tbe ooks, and if they | were properly kept be would have known that he WAS IusolFent at the l time of the sad eoaveXanees,
 That the bankrupt made the convey. | auee of sz2,3aH to Andem to secure | indebtedness To that amount Part of | the indebtedness consisted in the profit | sharing notes and said Andem was re ceiying lsE1 thereon in interest and | profits Said cor eyaHee 4isposez of | practically all of tbe available property | belonging fo the bankrupt as is now disclosed bY the settlement nf the es tate which is nearly completed. and Nil | mol be sufficient aside from costs for the purpose Of paying the preferred claims, amounting 10 about s259a The esiensihle purpose of fbe conveyance "as that the bankrupt might obtain further loans from Audem of ready cash ot slur000 or slJ,ug0 as he might wish.
 CONCLUSIONS 6F LAW.
 q,fo eonvayance to Audem was Wllh ,ha .inteut to hinder and delay inc creditors of the bankrupt. lnteht is hest discovered by acts. by theH fruit VI shall know them IS rue tai5 down bv the Creator of the mnd af man. II is elementary law that a nerson is presumed to intend tue iaataral consequences of his own acts. rrb3s was A conveyance of about aH ot 1 his available property on Whieh ne eooId realize ready cash by sale or mortgage. The proceeds oi II Noui' have been sufficient to pay 70 al.t dend 10 his creditors, other than iue mining stock creditors, or about fEe dividend to all of his creditors. iae inc this property as he did beyond thelr control CT power to participate lh the same. resulted iu hindering and deiaS ing them to that extent, and the bahN
 rnpt so intended. 1" Hinder, delay OF dofraud. as the law reads Is different | from hinder. delay and detraud. lie 6ttle word .'or' marks an alternative and is used in the sense Of either i
 The phrase IS equivalent to saving II A bankrupt does either of the three acts to wit, defraud, hinder or delay creditors fl shall be bar To his dis charge. After coming to this conclusion
 was pleased to find late ease winch win appear in the 27th A. E. k, ?. o2l, pirvite vs. pithan, which helps to con firm this conclusion. This was decided bv the U S. Circuit Court, Counsel for the bankrupt in his argument ap-
 peared to blend all of these words to. gether and merge them into fraud, This is a different proposition from that involved in an action to set aside these convevances of the bankrupt, because in such cases the grantee must have such knowledge as to naturally believe the insolvency of the bankrupt. Grant vs. National Bank, 97, |. x Sl-. A continuation in busne-ess even after the bankrupt became~2 nopeessly tusol vent and he kpey~ss 1t as iu ths case migbt amount .sSo a hinderlng or delav n,g of biss creditors. He stnbborulv
 eontipua.p1 uutd he wals forced into | banln ruptcy. IL is not ease of hoping ..o succeed but of an Illusion indulged n in at the expense of his creditors
 The transfer to Amdeu on the very face of it involves fraud because ii at. pears and Is admitted even by tho bank rupt that 1t was for the very purpose of obtaining large loans from him after
 the transaction was eonsummated Thls plan would probably been carried out } had il not been for the realization by , Amden and the other creditors of the 3 situation caused by the record of ths transfer and by certain legal proceed ings at about that time,
 For the foregoing reasons l am of tn, opinion that the specifications baNt ! been sustained and that the bankrur D is not entitled to discharge.
 l The Referee further reports that tb 2 trustee has not filed his final accom-. { but Is about ready to de so
 e Furthermore the Referee report Q that no provision has been made { $ pay the Special Master. nor the steueA raphers for their services which hay Q necessarily been considerable in this in B portant ease and therefore he asks tha e the Bankruptcy Court order that res e sonable sum shall be used for this pun | pose See in re Gillardon %, A. B. | d P l03.
 l. Dated al Wulimantic. Connecticut