Page:Federal Reporter, 1st Series, Volume 1.djvu/408

 iOO FEDERAL REFOBTEB. �Bill in equity, filed by petitioning crediter s of Dempster, an alleged bankrupt, to restrain certain other creditors from proceeding upon executions levied upon the personal property of the bankrupt, the bill alleging that these executions were fraudulent preferences. An injunction was granted, and, after Dampster h ad been adjudicated a bankrupt, the prop- erty was sold under an order of court by commissioners and the proceeds paid into the registry of the court. The asignee in bankruptcy was substituted as complainant, and after the pleadings and evidence had been completed the cause was, by agreement of the parties, referred to the register in bank- ruptcy, Edwin T. Chase, Esq., as master. He found the fol- lowing facts : �The petition in bankruptcy. was filed May 14, 1878. On May 8, 1878, two executions had been levied upon the bank^ rupt's Personal property ; one in f avor of Thompson & Binns, upon a judgment confessed April 26, 1878, for $806.20, an the other in favor of Gotlieb Kulmer, upon a judgment con- fessed April 29, 1878, for $354.81. Between the date of these executions and the filing of the petition several small execu- tions, upon judgments obtained adversely, were levied. Prior to receiving from Dempster the confessions of judgment, Thompson & Binns had from time to time sold merchandise to him for cash, receiving his checks in payment. On the last few purchases the checks came back unpaid and protested. Mr. Thompson, becoming alarmed, went to Chester, whero Dempster resided. Both parties went together to the office of Mr. Dickinson, attorney for Thompson & Binns, and Demp- ster executed the judgment note, which was made payable at once. Dempster told Thompson that he was about being sued, or expected to be sued, for some accounts. Thompson testified that, being afraid that Dempster would confess judgment to hisfather or some one else, he (Thompson) took the judgment note in order to get ahead of any such judgment, and instrueted his attorney to issue execution as soon as suits were brought or judgment obtained against Dempster. Sub- iuoquently a judgment was entered in favor of Dempster's ��� �