Page:Federal Reporter, 1st Series, Volume 3.djvu/639

 6S2 FEDERAL REPORTER. �Fleming and others v. Andeews, Assignee, etc. �{Circuit Court, D. Indiana. ,1880.) �L Bankeuptct — CoNSPÏRACT — ILLEGAL Prefbuence. — The crediter of a bankrupt cannot obtain a preference of his debt by purchasing the property.of the bankrupt through the intervention of an agent, and tendering the notes of the banlcrupt in payment for the same. �2i Bame — Action bt Assignes— Sbt-Off. — In an action by the assignee to recover the value of such property, the crediter canuot set ofl" the notes of the bankrupt. �In Bankruptey. Appeal from the district court. �Baker, Hord e Hendricks and Ayres e Browii, for plaintiffs. �Chapman e Hammond, for defendant. �Deummond, g. J. The declaration was originally filed upon the theory that the bankrupt, Williamson, and the defendants, to whom Williamson was indebted, had made an arrangment^ in violation of the bankrupt law, in consequence of which the defendants had obtained an illegal preference of the debt which they had against him. Demurrers were interposed in the district court to the various paragraphs in the com- plaint, and, as the resuit of the action of the court, amend- ments were made by the complainant, upon ail of which, finally, the defendants went to trial on the issues formed. The cause was submitted to the district court without the intervention of a jury, and the court found against the defend- ants. �The facts of the case, as they appear upon the record and in the bill of er^ceptions, seem to be substantially these : �Williamson, the bankrupt, had become insolvent, but had in his possession and control forty-four car loads of coal. The defendants, knowing his condition, or having reason to believe that he was insolvent, and with a view of causing a portion of the debt which Williamson owed them to be paid, made an arrangement with 0. G. Stewart & Co., by which the latter were to purchase of Williamson this coal, or pre- tend to purchase it, and payment to be made in cash in 30 days ; but that C. G. Stewart & Co. were to have transferred ����