Page:Federal Reporter, 1st Series, Volume 2.djvu/181

 I7e PBDEBAIi EEPOBTBB. ���Adams, Assignee, etc., v. Mbrchants' National Bank of Indianapolis. �(Circuit Oovrt, D. Indiana. April, 1880.) �Wa-rbhotisb Recbipts— Indiana Statutb. — The provisions of the act of March 9, 1875, (1 Davis, 1876, p. 927, Ind.) making warehouse re- celpts negotiable, and an indorsement of such receipts a transfer of the property, helà not applicable to a transaction where a private warehouseman took ont a permit for his warehouse, in class B, and then Issued receipts for his own property stored therein. �Plbdge — Warehousi; Receipts. — As againgt creditors, possession, act- ual or constructive, is essential to the validity of a pledge. Where a private warehouseman issued receipta for his own property, in his own warehouse, and deliverod them as secunty for his indebtedness, Tield, that the person to whom they were so delivered acquired no title to the property described therein as against other creditors; and, in bankruptcy proceedings, was not entitled to any preference. �Bankrtiptcy — Assignee. — An assignee in bankruptcy represents ail the creditors, and as such may contest transfers binding upon the bankrupt. �Samb — Pbefbrhed Ceeditor — Unlawful Oontbact. — The fact that a bankrupt received money or property upon an unlawful contra'ct, under which a crediter seeks a preference, which property went to iacrease the estate, will not render such contract valid. �Petition in review of order of the district court. �McMaster e Boice and Judah e Caldwell, for assignee. �R. 0. Hawkim and Dailey e PickeriU, for defendants. �Dbummond, C. J. In the fall of 1877, Van Camp & Son were engaged in business at Indianapolis, in buying and selling apples and other produce, and in the manufacture and putting up of meats, fruits, etc. They had a storehouse at Indian- apolis, where they kept articles which they wished to hold for better priees. At that time they applied to the bank for a loan of $2,000. The bank agreed to make the loan upon the execution of a note by the bankrupts, with certain sure- ties, and on the condition that they would couvert their storehouse into a public warehouse of class "B, " by taking out a permit therefor under the statute, and would place the 800 barrels of apples, for the purchase of which they made the loan, in the warehouse, issuing warehouse receipts therefor ����