Page:Federal Reporter, 1st Series, Volume 1.djvu/93

 PAP.S0N8 V. CASWBLIi. 85 �goods, most or ail of which were new goods. It îs true that each of these notes represented in aggregate other liabilities previously existing, and for some or ail of which Caswell had a certain character of security; but the giving of these new notes at such a critical time, and when the suits in question were commeneed or pending, and for the payment of which the bankrupt, as I read the testimony, then gave to Caswell greater and better security than he before had, evidences an intention on the part of Caswell to acquire such security, and on the part of the bankrupt to give such a preference, as the law under the circumstances forbids; and this goes not only to the validity of these transfers themselves, but, as I have said, colors ail the transactions under investigation, so far as motive, intent and acts are concerned. It is true that upon the liabilities which made up the note of $535.69 Caswell had a certain character of security in the shape of a chattel mortgage, and a lease which contained a clause transferring to Caswell the personal property upon the leased premises, but it is very doubtful whether this security was valid, and it is evident that it was not relied upon as possesing the value which the emergency required. It is noticeable, also, that one of the notes which went into and formed part of the note for $535.69, namely, a note for $156.93, was not then due, and I am elearly of the opinion that tl^ese two transactions did not constitute an exchange of securities which may be pro- tected within the rule laid down by the supreme court, and certainly, transpiring as they did, just on the eve of the bankrupt's failure, they tend strongly to show a deliberate purpose on the part of the bankrupt to prefer his crediter by giving to him the best security at his command. It was urged, upon the argument by the learned counsel for defend- ants, that the notes upon which the judgments in question were rendered were judgment notes; that the judgments were not obtained as speedily as they might have been, and that this is a circumstance tending to show that there was no such co-operation between the parties as will now be held to inval- idate these liens; but ail of the notes sued on were not judg- ment notes, and some were executed as if in preparation for ��� �