Page:Federal Reporter, 1st Series, Volume 3.djvu/897

 890 FEDERAL REPORTER. �Waeneb and others v. Spooneb, Assignee. �{Circuit Oowt, B. Massachusetts. September 30, 1880.} �L Bahkrtjptcy— Bankrupts m Kepebskntativb Oapacitt— Proop op Dkbt. — ^A court of bankruptcy may permit the bankrupts themselves, acting in a representative capacity as the administrators of an estate, to prove an equitable debt, arising from a loan of funds borrowed from the estate of their intestate, whether such loan was lawful or not. �2. Bamb — Samb — Samb — Abcebtainmeitt op Amount. — In such case, however, the amount for which the administrators are liable should be flrst ascertained in the court of probate. �Oideon Wells and KnowUon d Long, for appellants. �C. N. Judson, for appellee. �, LowBLL, C. J. This is an appeal from the decree of the district court rejecting a debt offered for proof in the bank- rnpt estate of Frank H. Warner and Elizabeth B. Warner, copartners. The bankrupts are the administrators of the estate of the late David Warner, and are entitled to two-thirds of his Personal property after his debts are paid. The debts of the intestate bave ail been paid, or, if not, are barred by the statute of limitations. The remaining third belongs to a minor daughter of David. After David Warner's death, the bankrupts, who are his widow and son, formed a copartner- ship, and put into it $52,000 of his assets, for which they gave a firm note, payable to the estate of David Warner. Before they became bankrupt they had paid about half of the amount, and it is admitted that they now owe the estate about $27,000. The district judge very properly rejected a proof upon the note as a legal instrument, holding it a mere memorandum; and from this decree no appeal was taken. The administrators then offered the proof now under review for the amount which, as copartners, they owe themselves as administrators. �We bave no doubt that a court of bankruptcy may permit the bankrupts themselves, acting in a representative capacity, to prove an equitable debt of this nature arising from a loan of trust funds, whether the loan was lawful or not ; or it may ����