Page:Federal Reporter, 1st Series, Volume 6.djvu/766

 76e FEDEEAL KEPOETER. �that the respondent is a trustee for the benefit of the com- plainant of ail the moneys, bills of lading,,accounts, mer- chandise, chattels, and other property obtained by said Lewis through or by means of said action, attachment, judgment, execution, or sheriff's sale, or transferred or delivered to or received by him from said Schoenfeld, from said Newman, or from any other person, and also for such further and other relief, etc. ; also, for an injunction and writ of ne exeat. �The facts and circumstances which constituted the fraud are particularly and fully set forth in the bill. Ita allegations are snstained beyond ail doubt or deniai by the proofs. It is, perhaps, not easy to imagine a grosser case of conspiracy by merchants of fair repute to cheat and defraud their creditors, or one where the proofs could be more convincing and indis- putable. The testimony is very voluminous. But the evi- dence to establish the fraud is that of seven witneases only, viz., Lewis, Newman, Hyams, Schoenfeld, Naphtaly, Sharp, and Bremer, nearly ail of whom were active participants in the fraud, either at its inception or during its progress or at its consummation. �I shall not attempt to give a detailed account of the various transactions by which the respondent, at the instance and by the aid of Newman and Schoenfeld, two of the three mem- bers of the firm, succeeded in getting possession of the entire assets of the partnership, to the exclusion of ail its eastern and foreign creditors, and of nearly ail its creditors in this state. It will be sufficient to state the nature and effect of the fraudulent conspiracy, and in a general way the means by which those objects were attained. The' firm of Schoen- feld, Cohen & Co. was composed of three partners — Louis S. Schoenfeld, Isaac Newman, and Simon Cohen. Its capital was 130,000, contributed ^$15,000 each) by Schoenfeld and Newman. Cohen was to contribute for a certain period his skill and experience in the business, and thereaf ter to f urnish $15,000 to the capital, or pay interest on such portion thereof as he should fail to furnish. Each partner was to be at lib- erty to draw $050 per month for personal expenses. In Jan- Tifiry, 1877, it was determined between Schoenfeld and New- ��� �