Page:Federal Reporter, 1st Series, Volume 2.djvu/333

 326 FEDERAL REPORTER. �was generally known to be in doubtful credit, difBcuIt to col- lect any money from, and was, in reality, insolvent. In 1868 a property adjoining the hôtel, on the Duke of Gloucester Street, was offered at auction by the heirs of John Campbell, and was knocked down to Morse for $1,800, and he then ostensibly became the owner of it; that on the fifth of November, 1869, a deed was put on record, signed by the heirs of Campbell, conveying the property to Morse's wife, the deed being dated and acknowledged on the third of Au- gust, 1868, which was about the date of the sale; that on the eighth of November, 1869, a deed was executed and re- corded, conveying the property from Mrs. Morse to Samuel Barth, in consideration of $2,300; that on the tenth of May, 1869, a lease was executed and recorded, by which, in con- sideration of $1,000 and the reservation of a rent of $48 a year, extinguishable upon the payment of $800, the prop- erty was conveyed by Barth to Martha R. Wilson; that on the twenty-first of April, 1869, Morse, on bis own petition, was declared a bankrupt, and the complainants were, subse- quently, appointed bis assignees. �The bill alleges that the consideration for the property con- veyed by Campbell 's heirs to Caroline Morse was not paid by her but by her husband, and that Morse procured the deed to be made to her with design to defraud his creditors, and that the deed was kept unrecorded for fifteen months in furtherance of that design, he, in the meantime, holding himself ont, as the owner ; that the consideration in the deed from Caroline Morse to Barth was not paid to her but to her husband, and that Morse caused said deed to be made to Barth, who then had reasonable cause to believe Morse was insolvent or acting in contemplation of insolvency, with a view to prevent his property from coming to his assignee in bankruptoy, and in fraud of the provisions of the bankrupt act. �The bill praya for a decree against Barth, and that Mrs. Wilson may be decreed to hold the property under the lease to her for the benefit of the assignees, and prays for other relief. �The answers aver the good faith of ail the transactions. ����