Page:Federal Reporter, 1st Series, Volume 4.djvu/528

 514 rSDE&AL BBIOaiEB. �In re New Brunswick Carpet Co., Bankrnpt. �(District Court, I). Nea Jermy. October 25, 1880.) �1. Bankbuptct Act, i 5081 — Claim — Mistakb, — Section 5081 of tho �bankrupt act provides that the court " shall reject ail daims notduly proved, or where the proof shows the claim to be grounded in fraud, illegality, or mistake." Hdd, in construing this clause, that, in the absence of fraud, it was competent for the court to correct any mere mistake, and to allow tho proof to stand for anj sum that, upon examination, was f ound to be actually due. �2. Evidence — Check A cheçk is no evidence of a loan of money from �the drawee to the drawer. Fletcher v. Manning, 12 M. & W. 571. �8. Same— MoKTGAGEs. — Certain void mortgages Tield evidence, in this case, of the amount of an indebtedneas of a bankrupt debtor. �In Bankruptcy. On petition to expunge claim of the State Bank of New Brunswick. �a. Wayne Parker, for assignee. �A. V. Sckenck, for state bank. �Nixon, D. J. On the fourth day of Mareh, 1874, the State Bank of New Brunswick, by G. E. Conover, cashier, filed a proof of debt against the above-named bankrupt corporation, amounting, in the aggregate, to $667,351.76, being the bal- ance alleged to be due to the creditor corporation for moneys paid at the request of the bankrupt on certain checks, notes, and acceptances made and given by the carpet company to the bank, and including the sum of $6,458.63 for interest from August 30, 1873, to October 22, 1873. On the twenty- eixth of June, 1876, Elias W. Miller, assignee of the bankrupt corporation, presented to the court a petition setting forth, in substance, that the claimant had improperly eharged to the New Brunswick Carpet Company items of indebtedness aggregating $198,444.32, which were not chargeable against the bankrupt, and not sustained by the exhibits and vouchers Bubmitted in support of the claim; and had omitted and not included in said proof of debt and statement accompanying the same a number of items, amounting to $638,843.95, for which the bankrupt should have been credited in its dealings ����