Page:Federal Reporter, 1st Series, Volume 2.djvu/650

 IN EE VAN BCREN. 643 �circumstances were sufficient to create not merely a suspi- cion, but belief of insolvency. �Did the defendants know a fraud upon the bankrupt law was intended ? They certainly bad reasonable cause to be- lieve that by this payment other creditors would be deprived of an equal distribution in the assets of the firm. Pusey testi- fied, "he was of the impression that some one would suffer;" that is, the circumstances and facts within his knowledge produced the effeot upon his mind that by this payment to himself and Offioer other creditors would sufifer. �The amendment to the bankrupt act substituting "knowl- edge" in the place of "reasonable cause to believe," in this section, was undoubtedly intended to uphold payments which might be fraudulent before the amendment, and since the amendment such facts and circumstances must exist as would induce not merely belief, but knowledge, that a fraud on the act was intended. The principal circumstance to prove this was that Pusey knew there were other creditors who would be deprived of their right to an equal distribu- tion of the proceeds of the bankrupt's estate. The evidence on this point is not doubtful. Pusey admitted it. 15 B. E. 168; 16 B. R. 93; 17 B. R. 163; 16 B. E. 275. �Motion for new trial denied. ���In THE Matteb of Van Buebn and another. �{District Court, 8. D. New York. May 14, 1880.) �Bankbuptcy — Application fok Discharge— Objections to — Cred- �ITOES CONSBNTINO INSUPPICIENT IN VALTTB — iNTEREBT ON ClAIM — �Proop op Dbbt — Kejbction op — Failurb to kbbp propbr Bocks — �JUDGMBNT BY DePAITLT— EppBOT OP— SbOONDARY EVIDENCE. �W. W. Badger and C. M. Da Costa, for opposing creditor. N. Burt, for bankrupts. �Choate, D. J. Upon a hearing in this case on the certifi- cate of the register of proceedings, under the petition by the ����