Jaquith v. Alden

F. N. Woodward et al. filed their petition in bankruptcy, and were adjudicated bankrupts November 26, 1901. They had become insolvent August 15, and on that day were not indebted to G. Edwin Alden, who afterwards, in ignorance of the insolvency, made sales to Woodward et al., and received payments from them therefor in the regular course of business, and without any idea or intention on the part of Alden of obtaining a preference thereby, the sales and payments being as follows: Sales.

Aug. 17, 1901 Rubber............... $289.46 "   28,  "      "................... 657.89 Sept. 30, "      "................... 644.28 Oct. 18,  "      "................... 535.99 Oct. 18,  "    Cartage.................. .50 "   31,  "    Asbestine.............. 10.40

Payments.

Sept. 4, 1901  Payment  of  bill  Aug.  17  $289.46 Sept. 28, 1901  Payment  of  bill  Aug.  28   657.89 Oct. 29, 1901  Payment  of  bill  Sept. 30   644.28

The merchandise sold Woodward et al. was manufactured by them, and the result of the transactions was to increase their estate in value. Alden petitioned to be allowed to prove his claim of $546.89.

The referee disallowed the claim unless at least the amount of $633.88 was surrendered to the estate. The district judge reversed the judgment of the referee and allowed the claim, and the decree of the district court was affirmed by the circuit court of appeals (118 Fed. 270) on the authority of Dickson v. Wyman, 55 L. R. A. 349, 49 C. C. A. 574, 111 Fed. 726. Thereupon an appeal to this court was allowed and a certificate granted under § 25, b, 2.

Mr. Harry J. Jaquith in propria persona for appellant.

Messrs. Eugene M. Johnson, Arthur T. Johnson, and Alonzo R. Weed for appellee.

Mr. Chief Justice Fuller delivered the opinion of the court: