Page:Federal Reporter, 1st Series, Volume 2.djvu/133

 12d FEDEBAIi BEPOBTëB. �Adleb and others v. Eckee, defendant, and Booth, garnisliee. �{Circuit Court, B. Minnesofa. , 1880.) �AssiGNMBNTs — KiGHT To OoNTBBT. — Assignments for the beneflt of cred- itors in the state of Minnesota are simply regulated by statute. The assignes is mere trustee, and the legality of the assignaient may be contested by a creditor in the federal court. �8ame— Feaudulbnt Intent — How Shown. — The validity of an assign- ment for the beneflt of creditors, as affected by f raudulent intent, is to be determined by the intent of the aasignor, and his contemporaneoua fraudulent acts are evidence of such intent. �Same— Fbaud. — Facts in this case heîd to show a fraudulent intent on the part of the assigner, and the assignment void. �Eogers dt Rogers, for plaintiffs, �Yowng e Newell, for defendant and gamishee. �Nelson, D. J. Suit was brought by plaintiffs against Otto Ecker and judgment recovered. Garnishee proceedings were commenced against N. E. Booth, to whom Ecker had made an assignment for the beneflt of creditors. After disclosure by the garnishee a supplemental complaint was filed by per- mission of the court under the statuteg of the state of Min- nesota, and it is charged that Ecker made the assignment to Booth to defraud creditors. �The questions presented for consideration are : First. Can this court entertain a suit against the assignee, Booth, who has given a bond to faithfuUy fulfil his trusts, and is amena- ble to the state court, by virtue of the statutes of the state of Minnesota regulating proceedings under assignments for the beneiit of creditors ? Second. Is the assignment to Booth fraudulent and void as to Ecker's creditors ? �There is no law of the state authorizing assignments for the benefit of creditors, but such conveyances are recognized and regulated by the statute for better security. The assignee is selected by the assignor, and can only be removed for such dereliction of duty as would subject him to removal by a court of equity. In fact, the statutory enactment to this ����