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Of risk by employé, see "Master and Serv- See "Carriers," § 2. ant," § 1.
Effect of proceedings in bankruptcy, see "Bankruptcy," § 4.
Exemptions, see "Homestead."
ATTORNEY AND CLIENT.
Attorney as person affected by estoppel, see "Estoppel," § 1.
Attorneys as public officers, see "Attorney General."
Attorney's fees in action on policy, see "Insurance, § 2.
Attorneys in fact, see “Principal and Agent." Privileged communications, see "Witnesses," § 1.
§ 1. Retainer and authority.
*The entry of appearance for a defendant by an attorney is presumed to have been authoriz
ed, and to relieve himself from the effect of such appearance such defendant has the burden of proving to the satisfaction of the court that it was unauthorized.-Aaron v. United States (C. C. A.) 833.
Jurisdiction of United States court to restrain attorney general from enforcing state law as suit against state, see "Courts," § 2. Multifariousness in pleading in suit to enjoin attorney general, see "Equity," § 3.
Revisal N. C. 1905, § 1113, held mandatory and to impose on the Attorney General the duty to prosecute suits or actions necessary to secure enforcement of the railroad rate laws of the state.-Southern Ry. Co. v. McNeill (C. C.) 756.
Of agent, see "Principal and Agent," § 1.
See "Arbitration and Award," § 3.
*A bailee without reward assumes the least responsibility consistent with his undertaking. -Christian v. First Nat. Bank (C. C. A.) 705.
Claim in judicial proceedings as ground of estoppel against trustee in bankruptcy, see "Estoppel," § 1.
§ 1. Petition, adjudication, warrant, and custody of property.
*A petition in involuntary bankruptcy cannot be amended to allege additional acts of bankruptcy after the time for pleading thereto has passed and the alleged bankrupt by making default has confessed the acts charged. In re Harris (D. C.) 216.
Formal amendments to an answer filed by a creditor to a petition in involuntary bankruptcy against his debtor may be made at any time before the adjudication.-In re Harris (D. C.) 216.
Where a petition in bankruptcy charges as an act of bankruptcy a transfer of property by the defendant, while insolvent, to a creditor in payment of his debt, with intent to prefer such creditor, an answer which in effect admits the insolvency and the act charged, but merely denies the intent, raises no issue upon which the defendant is entitled to a jury trial.-In re Harris (D. C.) 216.
Where two petitions in bankruptcy are filed against a debtor alleging separate acts of bankthe earlier act, rule 7 of the general orders in ruptcy, and he answers but one, which charges bankruptcy, which provides that where more than one such petition is filed and answered that charging the earlier act shall be first heard, does not apply, but the case will proceed on the petition confessed. In re Harris (D. C.)
Under Bankr. Act July 1, 1898, § 14b, subds. 5, 14a, c. 541, 30 Stat. 550 [U. S. Comp. St. 1901, p. 3427], the bankrupt having been discharged in voluntary proceedings January 17, 1902, held not entitled to dismiss subsequent voluntary proceedings instituted January 11, 1907, over the protest of his creditors.-In re Smith (D. C.) 688.
*A city marshal who seized and removed property in possession of a receiver in bankruptcy, acting under a writ of replevin after being notified of the receivership and the issuance of an order of injunction, adjudged guilty of contempt.-In re Wilk (D. C.) 943.
§ 1. In criminal prosecutions.
Under a recognizance, held, the surety was obliged to produce the defendant, though he be indicted for another offense than that for which he was held.-United States v. Graner (C. C.) 380.
Assignment, administration, and distribution of bankrupt's estate -Appointment, qualification, and tenure of trustee.
The election of a trustee, approved by the referee, confirmed as against objections that it was brought about by a conspiracy between certain persons to obtain control of the property. In re Ketterer Mfg. Co. (D. C.) 987.
*Point annotated. See syllabus.
$ 3. - Assignment, and title, rights, Collections made by a creditor of a bankrupt
and remedies of trustee in gen- within four months prior to the bankruptcy on eral.
securities previously assigned to it as collateral A precatory trust, created by a testator in when the debtor was solvent do not constitute favor of his sons by a will leaving all of his voidable preferences. In re First Nat. Bank property to his wife, held to have been fulfilled (C. C. A.) 100; First Nat. Bank v. Holt, Id. by her in her lifetime, so that property devised by her to one of the sons, who became a bank
Although the rights of a trustee in bankrupt before her death, came from her estate, ruptcy and those of an assignee in insolvency and not the father's, and was not a part of his under a state statute are defined in similar lanassets in bankruptcy.-In re Harper (C. C. A.) guage, yet a state statute, making a certain 105.
transfer void as against an assignee, eo nomine, *Under Bankr. Act July 1, 1898, c. 541, $ bankruptcy.-In re Loveland (C. C. A.) 838;
does not make it void as against a trustee in 70. 30 Stat. 565 (U. S. Comp. St. 1901, p. 3451), In re Littlefield, Id.; Putnam v. Loveland, Id. which vests in a trustee all the rights of a bankrupt in respect to his property, such a trustee Where a mortgagor after paying part of the may maintain an action to recover usurious in- mortgage debt borrowed further sums, the terest paid by the bankrupt.-Reed v. American- amount of which by agreement was to be added German Nat. Bank (C. C.) 233.
to the remainder due thereon, the mortgage is Property in possession of a bankrupt under a valid lien in equity for the full sum as so unrecorded contracts of conditional sale held to increased as against the mortgagor's trustee in have passed to his trustee both under Rev. St. bankruptcy, whether tested by the law of MasMe. c. 113, § 5, which makes such unrecorded sachusetts or the bankruptcy act. In re Lovecontracts void except as between the parties, and land (C. C. A.) 838; In re Littlefield, Id.; PutBankr. Act July 1, 1898, c. 541, § 70a(5), nam v. Loveland, Id. 30 Stat. 565 [U. S. Comp. St. 1901, p. 3451].
*A sale by an insolvent company in bulk of -In re Perkins (D. C.) 237.
its stock of merchandise, which constituted prac Machinery in the possession of bankrupts attically all of its property, held made with intent the time of their bankruptcy held to have been to hinder, delay, and defraud its creditors, and acquired by them under contracts of conditional to be voidable at suit of its trustee in bankruptsale, and not of bailment under the law of Penn-cy:-Johnston v. Forsyth Mercantile Co. (D. C.) sylvania, and to have passed to their trustee | 268. under Bankr. Act July 1, 1898, § 70a(5), c. 541, 30 Stat. 566 [U. s. Comp. St. 1901, p. 3451]. the property for the benefit of the mortgagee
*An oral agreement by a mortgagor to insure -In re Burt (D. C.) 267. Where machinery sold and shipped to a cor- struction, gives the mortgagee an equitable lien
whose money was used in its purchase and con poration to be paid for in cash was delivered upon the proceeds of the insurance after the without such payment, at its request and prom- property has been destroyed by fire, as against ise to send a check, which was not done, and the mortgagor or his trustee in bankruptcy, al afterward the seller's agent settled the claim though such agreement was made after the by taking negotiable youchers for the price se- mortgage was given, and the policies had been cured by collateral, the title to the machinery issued, which were not in terms for the mort passed to the purchaser at least on such set-gagee's benefit.-Hanson v. W. L. Blake & Co tlement, and on its subsequent bankruptcy to (D. C.) 342. its trustee.-In re Cullman Fruit & Produce Ass'n (D. C.) 372.
Where a bankrupt on a purchase of property Circumstances under which a court of equity on contracts of conditional sale agreed to have might permit a rescission of a contract of sale it insured for the sellers' benefit, and obtained on the ground of mistake in the representations policy payable to them, the sellers had an equi where the parties could be restored to their table lien on the proceeds of the insurance, al original position may not warrant such relief though the bankrupt took out a renewal policy after the purchaser has become bankrupt, and payable to another, of which fact they had na especially where the specific property purchased knowledge.--Hanson v. W. L. Blake & Co. (D cannot be restored.-In re American Knit
C.) 342. Goods Mfg. Co. (D. C.) 906.
Sellers of property to a bankrupt on contract § 4.
- Preferences and transfers by reserving title until payment held under th
bankrupt, and attachments and facts shown to have no equitable claim upon th other liens.
proceeds of the remnants of such property and To render a preferential payment received by other property remaining after a fire, afte a creditor from his debtor within four months its sale by the trustee in bankruptcy.-Hansor prior to the latter's bankruptcy voidable under v. W. L. Blake & Co. (D. C.) 342. Bankr. Act July 1, 1898, c. 541, $ 60b, 30 Stat. *A chattel mortgagee, for whose benefit th 562 [U. S. Comp. St. 1901, p. 3445] as amend- mortgagor obtained a policy of insurance on th ed by Act Feb. 5, 1903, c. 487, § 13, 32 Stat. 799 property payable to her as her interest migh [U. S. Comp. St. Supp. 1905, p. 689), the bank- appear, pursuant to an agreement made wher rupt must not only have been insolvent when the the debt was created, held to have an equitabl payment was made, but must have intended it lien on the proceeds of such policy as against th as a preference.-In re First Nat. Bank (C. C. trustee in bankruptcy of the mortgagor. Han A.) 100; First Nat. Bank v. Holt, Id.
son v. W. L. Blake & Co. (D. C.) 342. *Point annotated. See syllabus.
*A chattel mortgagee, whose mortgage was not A referee in bankruptcy is not disqualified by recorded as required by statute until after the interest under Bankr. Act July 1, 1898, c. 541, bankruptcy of the mortgagor, and who after the § 39b, 30 Stat. 556 [U. S. Comp. St. 1901, p. lestruction by fire of the greater part of the 3136], where his only interest is the compensaproperty took no steps to obtain possession of tion he will receive by way of fees.-In re StroEhe remainder, held to have no equitable lien bel (D. C.) 692. upon the proceeds of the same when sold by the Erustee in bankruptcy.-Hanson v. W. L. Blake tion of a bankrupt at the request of the re
Stenographer's fees charged for the examina& Co. (D. C.) 342.
ceiver before a special commissioner are pay*The assignment by a bankrupt within four able from the bankrupt estate only after apmonths prior to his bankruptcy, and while in proval of the bill by the receiver, and proof solvent, of a claim against an insurance com- that all the examination was necessary and pany for a fire loss, to secure a prior indebted- of benefit to the estate.-In re Stark (D. C.) hess, was void as a preference, and created no 694. legal or equitable lien in favor of the assignee to the insurance money as against the trustee in 3co Stat: 555 [U. s! Comp. St. 1901, p. 3435),
Bankr. Act July 1, 1898, $ 38, subd. 5, c. 541, bankruptcy.--Hanson v. W. L. Blake & Co. authorizing a referee in bankruptcy 'to employ D. C.) 342.
a Evidence held to sustain a referee's finding rupt held not to apply to hearings before a spe
stenographers on an examination of the bankthat certain mortgagees of the bankrupt, who cial commissioner.-In re Stark (D. C.) 694. received their mortgages within four months prior to the filing of the bankruptcy petition, had
* Where the receiver and trustee continued no knowledge of the bankrupt’s condition, and to occupy premises leased by the bankrupt withthat their mortgages were therefore valid, but out agreement as to rent, the landlord is enthat another mortgagee had notice of such con- titled to rent on a quantum meruit, but canHition, and that his mortgage therefore created not recover for power which was not used.an invalid preference.-In re Tindal (D. C.) 456. In re Grignard Lithographic Co. (D. C.) 698. A court of bankruptcy has no jurisdiction to
Where the proceedings of a receiver in bankadminister property set aside to a bankrupt un- ruptcy were beneficial to the estate, and his der his claim for exemption.-In re Sorg (D. C.) expenses incurred seemed reasonable and neces550.
sary at the time, they would be allowed, though
it subsequently appeared that the receivership Evidence held not to sustain the claim of a seller of goods to a bankrupt that such sales case justified.-In re Krause (D. C.) 702.
was more expensive than the necessities of the were induced by fraud on the part of the bankrupt in knowingly making materially false state- $ 6. Actions by or against trustee. ments of assets, such as would entitle the seller A Circuit Court of the United States has juto rescind.-In re American Knit Goods Mfg. risdiction of an action by a trustee in bankCo. (D. C.) 906.
ruptcy against a national bank to recover usuri
ous interest received by the defendant from the 5 5. Administration of estate.
bankrupt in violation of Rev. St. 88 5197, 5198 A court of bankruptcy has jurisdiction to [U. S. Comp. St. 1901, p. 3493]. - Reed v. Ameriorder a sale of property of a bankrupț upon can-German Nat. Bank (C. C.) 233. which a lien is asserted free from such lien, and without first determining either its validity
A petition by one who sold goods to a bankor amount.-In re Loveland (C. C. A.) 838; rupt firm during several months prior to its In re Littlefield, Id.; Putnam v. Loveland, Id! bankruptcy, seeking to rescind the sales for
, ? | The giving of false, vague, and evasive testi-hearing, unless it not only alleges all the facts
fraud, will not be considered and referred for mony by an alleged bankrupt on his examination necessary to entitle the petitioner to rescind, Defore a special commissioner, with the inten- but also sets out all the transactions and detion of misleading the court and concealing as- scribes the goods in detail.-In re Levi & Picard sets of his estate, is a misbehavior, and con- (D. C.) 262. stitutes a contempt which the District Court has power to punish under Rev. St. 8 725 [U. Where judgment was obtained in a state court 3. Comp. St. 1901, p. 583], on a summary hear- vacating the lien of a mortgage on the prong without a jury.-Ex parte Bick (C. Č.) 908. сeeds of certain of the bankrupt's property, and Bankr. Act July 1, 1898, § 21a, c. 541, 30 Code Civ. Proc. N. Y. & 1351, the appeal was
no stay was obtained pending an appeal under Stat. 552 [U. S. Comp. St. 1901, p. 3130], pro- ineffective to delay the trustee's disbursement cerning the acts, conduct or property of a bank- of the fund free from the mortgage lien.
cupt whose estate is in process of administra- re National Lock & Metal Co. (D. C) 690. Eion under this act,” does not authorize an or
*Evidence considered, and held insufficient to ler in involuntary proceedings in which there prove that transfers of property by a bankrupt has been no adjudication requiring the alleged were made for the purpose of hindering, delaypankrupt to appear and submit to an examina- ing, and defrauding his creditors so as to entitle cion.-In re Crenshaw (D. C.) 271.
the trustee to a decree setting them aside.Expenses of keeping mortgaged horses of a Entwisle v. Seidt (D. C.) 864. pankrupt held to be apportioned, where the re- The fact that a creditor who had received ceiver prevented the mortgagee from foreclosing. property from a bankrupt under circumstances -In re Davis (D. C.) 671.
which rendered it a voidable preference had ex*Point annotated. See syllabus.
pended money thereon is no defense to a pro-facts being made known to the court, such suit ceeding by the trustee for its recovery, though will be dismissed.-Cruchet v. Red Rover Min. it may create a claim against the estate.-In Co. (C. C.) 486. re Nechamkus (D. C.) 867.
Where bankruptcy intervened pending supple§ 7. — Claims against and distribu- mentary proceedings on a judgment provable tion of estate.
and dischargeable in bankruptcy, the creditor Where all the known assets of a bankrupt was not entitled to the vacation of a stay reestate have been collected and reduced to mon- quiring further proceedings for the examinaey, a final dividend may be declared under tion of the debtor and third persons in bankBankr. Act July 1, 1898, Š 65b, c. 541, 30 Stat. ruptcy proceedings.-In re Burke (D. C.) 703. 563 (U. S. Comp. St. 1901, p. 3448), as amended by Act Feb. 5, 1903, c. 487, § 15, 32 Stat.
§ 10. Exemptions. 800 (U. S. Comp. St. Supp. 1905, p. 690], at ment on a note waiving exemptions and served
*An attachment execution issued on a judg, any time after the expiration of three months after the declaration of the first dividend, and on the debtor's trustee in bankruptcy, who holds any creditor who has not then proved his claim proceeds of exempt property sold, is invalid and is debarred from participating in the fund.- fund, which is in custodia legis, and not sub
ineffective to create any lien or claim upon the In re Bell Piano Co. (D. C.) 272.
ject to attachment.-In re Sorg (D. C.) 550. *Debts assumed by an individual on a purchase of property, and afterwards by a partner: lars, and worn by' a bankrupt himself, is not
*A diamond ring, worth several hundred dolship of which he became a member by agreement between the partners, held provable against the exempt under a state statute as “wearing appartnership estate in bankruptcy.-In re Sick- parel.”—In re Gemmell (D. C.) 551. man & Glenn (D. C.) 508.
The wife of an absconding bankrupt held enWhere a salesman was not entitled to a pref- titled under the law of Ohio to claim $500 out| erence for wages under Bankr. Act July 1, 1898, of the proceeds of the bankrupt's estate as a c. 541, 8 64, subd. “b,” par. 4, 30 Stat. 563[U. S. homestead exemption, where the property conComp. št. 1901, p. 3447], at the time of a bank: sisted of liquors, which, if taken in specie, she ruptcy adjudication against his employer, he could not dispose of without being subjected could not obtain such preference under the to license taxes which would render the examendatory act of June 15, 1906, extending the emption of no practical value.-In re Luby (D. preference right to traveling and city salesmen. C.) 659. -In re Photo Electrotype Engraving Co. (D. When a bankrupt's exemption allowed by the C.); In re Vredenburgh's Claim, Id. 684.
state law for the benefit of the family will Under Bankr. Act July 1, 1898, § 57, subd. be defeated unless its allowance be in cash out| ,. 541, . U.'s,
of the proceeds of a sale, it will if practicable p. 3444], a bankrupt estate ready for final distri: be ordered paid out of 'such proceeds.-In re bution may be closed at any time after four Luby (D. C.) 659. months from the date of the adjudication on no- Under the exemption law of Pennsylvania tice to all persons scheduled or appearing in (P. L. 1849, 533), a claim by a bankrupt to an any way in the proceedings as creditors.-In re exemption in cash out of the proceeds of his Eldred (D. C.) 686.
estate is invalid and gives him no right.-In Where a part of a creditor's claim for money
re Pfeiffer (D. C.) 892. deposited with the bankrupt prior to the filing Under the law of Pennsylvania, a debtor may of the petition was allowed, the creditor's fail- waive his claim to exemption, but may not asure to take up the referee's report and act sign it, and a bankrupt who has filed a formal thereon did not deprive such creditor of the waiver of his claim will not be permitted to right to the amount allowed, at least to the ex- withdraw such waiver for the benefit of a single tent of the fund in the hands of the trustee in creditor to whom he has made an assignment excess of the cost of administration.-In re A. of his claim.-In re Pfeiffer (D. C.) 892. C. Wilcox & Co. (D. C.) 701.
A bankrupt held not entitled to a homestead 8 8. - Accounting and discharge of exemption under the law of Pennsylvania on trustee.
the ground of fraudulent concealment of propA trustee removed for cause held not entitled erty.-In re Leverton (D. C.) 925. to the allowance of his personal expenses or commissions on the ground of willful miscon- $ 11. Right to discharge in general. duct.-In re Leverton (D. C.) 931.
Under Bankr. Act July 1, 1898, c. 541, § 14b,
30 Stat. 550 [U. S. Comp. St. 1901, p. 3427], as § 9. Rights, remedies, and discharge of amended by Act Feb. 5, 1903, c. 487, § 4b, 32
bankrupt-Actions against bank- Stat. 797 [U. S. Comp. St. Supp. 1905, p. 684], rupt.
which provides that the judge shall discharge A federal court was without jurisdiction to en- a bankrupt unless he has (5) in voluntary protertain a creditors' suit against a foreign corpo- ceedings been granted a discharge in bankruptcy ration, and to appoint a receiver therein, where, within six years," the six years is measured at the time such suit was commenced, a petition backward from the time of the hearing on the in bankruptcy was pending against the defend application for the second discharge, and not ant in the district of its domicile, which was aft- from the time of the commencement of the secerward followed by an adjudication, and, on the ond proceedings.-In re Haase (D. C.) 553.
*Point annotated. See syllabus.
12. Creditors entitled to
oppose | true financial condition, held sufficient.-In re
A creditor of a bankrupt having a provable
Grounds for refusal of dis-
A bankrupt held not debarred of the right to a
Verification of specifications to a bankrupt's
in the state court held sufficient to entitle the
has a nonprovable or nondischargeable debt, the
ing that objector, being interested as a creditor
A finding by a special commissioner to whom
A bankrupt held on the evidence not entitled
Where specifications of objection to a bank-
Specifications of objection to a bankrupt's
A specification of objection to a bankrupt's
A specification of objection to a bankrupt's
$15. Conclusiveness and effect of
discharge in general.
proceedings in which the debtor was refused a
renders the issue as to his right to a discharge
§ 16. Appeal and revision of proceedings.
*An order made by a court of bankruptcy af-
In a proceeding by a bankrupt's trustee to
*Point annotated. See syllabus.