Page:Federal Reporter, 1st Series, Volume 1.djvu/411

 clabidob V. eulueb. 40$ �Btjtler, J. An earnest argument was made against the maBter's finding that the execution creditors, Gotlieb Kulmer and Thompson & Binns, had reasonable cause to believe Mr. Dempster insolvent when the judgment notes were given. It has not conyinced us, however, that the master is wronp;. �The law is well settled. Grant v. The Bank, 1 Otto, 80, contains nothing new. The creditor must bave such knowl- edge of facts, to defeat a- preference, as are calculated to produce reasonable belief of the debtor's insolveney. It is not sufficient that he have cause to suspect, simply. As is said in Grant v. The Bank, dicta to the contrary are not wanting. But the rule, as above stated, conforms to the language of the statute, and to every decision in which the question was involved. What facts are neoessary to produce the belief must be determined in each particular case. No rule on the subject has been or can be establiehed. To som© minds the facts found,and adverted to by the judge,in Grant T. The Bank, would bave been sufficient, and, if they had satisûed the circuit court, it is quite probable the final resuit in that case would bave been otherwise. �In the case before us it would be difficult, we think, for an unbiased mind to read the testimony respecting the informa- tion possessed by Messrs. Kulmer, and Thompson & Binns, at the time their notes were given, and avoid the conclusion that each of them, directly, or through their counsel, had knowledge calculated to produce a reasonable belief that Mr. Dempster was unable to meet his business obligations as they maturedi And this inabUity constituted insolveney. What they may bave supposed him able to do with time to nurse his affairs is unimportant. To each of them he had recently given cheoks repeatedly, without having funds to meet them. They knew that his creditors vpere pressing; that he was fre- quently sued, and was seriously embarrassed, Mr. Dickinson, attorney for Thompson & Binns, testifying that a "multitude of suits" had been instituted against him, "several during the previous week," and that he (the witness) was afraid the father would get judgment and sweep everything away. It is not very important that Mr. Dempster was able to arrange^ ��� �