The Bridgeport evening farmer., 1916-09-27
Deed Supplants Mortgage

Deed Supplants Mortgage of said John c. Chamberlain, the | mortgage was destroyed, and a deed, absolute upon its face, given to John c. Chamberlain, in substitution there- for, by said Hervey E. Burr, trus- tee.
 That, under the law of the state of Connecticut, when the true transac- ton is a mortgage, and instead of stating the true transaction by means of a mortgage conveyance, the par ties give and accept a deed abso- lute upon its face, which thus mis- represents the transaction, in such case the grantee becomes postponedl to an attaching creditor or trustee i'm bankruptcy. That by reason of this law, the, said property title to which is now in John C. Chamberlain, absolutely real- ly belongs to the trustee in bank ruptcy for the benefit of the bank rupt estate of Burr & Knapp. and that if an action were brought in the courts of Connecticut against John c. Chamberlain. the property. worth upwards of s10,00O, would be recov- cred for\ the bankrupt estate. That these facts have been pointed1 out to John c. Chamberlain and he has been asked to reconvey the prop erty or resign, as, trustee so that al determination of the reconveyancel may be had. A third allegation recites:
 That John c. Chamberlain, is, and has-been since 1911, the president of, the Watervliet Hydraulic Company. and as such president for the purpose | of raising funds signed two notes of the Watervliet Hydraulic Company payable to the order of Burr & Knapp. in the sums of $5,000 and s10.000, rel spectively, which notes. John C.. Chamberlain endorsed, personally. That the notes were subsequently, discounted at the City National Bank in Bridgeport and the proceeds placed to the credit of the Watervliet Fly draulic Company and the funds used by that company. That as security for the payment of the note for $5,000, the firm of Burr & Knapp, for the purpose of assist i ing the Watervliet Hydraulic Com pany in obtaining said discount. placed with the City National Bank certain notes and other securities be- longing to Burr & Knapp. amounting to upwards of s3.0o0. These secur- ities were to guarantee the payment of the note if the sums were not paid by the watervliet Hydraulic Company. or by the endorser, John c. Chamber lain.
 Company Insolvcnt
 That subsequent partial payments wefe made by the Watervliet Hydrau- lie Company on the note. so that at. the time of the appointment of John c. Chamberlain, as receiver, for the firm of Burr & Knapp there was due the sum of $2.750.
 That, at and for some time prior to receivership, the Watervliet Hydraulic Company, was. in fact. insolvent. and this fact was we'll known to said John .C. Chamberlain, it's president, and that the Watervlfet Hydraulic Com- pany is now in the hands of a receiver in the courts of the state of New York,
 That the Watervliet Hydraulic, Com- pany is indebted to the firm of Burr & Knapp in the sum of S53 .710.9S, and was indebted for about that sum at the time of said receivership,
 That John c. Chamberlain as re- ceiver of Burr & Knapp, collected notes and other assets to the amount of S1,1e1, 60, which were held by said City National Bank as security for the payment of said note of $5,00o. These funds, John c. Chamberlain paid over to the City National Bank to reduce
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