Page:Federal Reporter, 1st Series, Volume 7.djvu/773

 NISBBT ». QTJINK. 761 �of thc goods, unless they can show that at the time of the transactions they made inquiry and satisfled thernselves that the vendor was sell- ing for a legal purpose. �A Same— Bamb. �In such a case, the mere statements of the vendees that they did net know that the vendor intended any fraud on the bankrupt act amount to nothing. The law declares that they did know ; that the fact of the vendor making the sales out of theusual course of his business conveyed knowledge to them prima fade of an illegal pur- pose ; and it is for them to show that by Inquiry and investigation they became reasonably satisfled that the sales were properly and legally made. �Mr. Justice William B. Woods delivered the following decision:* - �These three cases were heard ' together, the facts being substantially the same in each. They are bills in equity filed by Eobert A. Nisbet, assignee of A. Dans, a bankrupt, to recover from the defendants the value of certain goods alleged to have been transferred to them by Dans wheu insolvent, and with intention to defeat the operation of tho bankrupt act, and not in the usual course of his business. �The case against Thomas Quinn l*ill be taken up first. The facts are these: Dans began business in Maroh, 1877, &t Huff's corner, in the city of Macon, GeOrgia. His business was that of a retail dealer in cigars, tobacco, pipes, etc. His capital at that time does not appear in the evidence. His ordinary monthly sales from the beginning of his busi- ness up to December following, the time of his adjudication in bankruptcy, were $1,000 per month. In November he had $8,000 worth of stock in his store. The debts proved against him in bankruptcy show that he was indebted to parties from whom he purchased his stock something over $7,500. During the month of November, and during one week of that month, from the 22d to the 29th, Dans made sales of his stock to an amount of a little over $5,000 to three persons, To Quinn he sold goods worth $1,100, to Kahn over $1,900, to Dub $2,200. During the �*Reported for the Fbdebal Reporter, from the opinion and summary of facts pronounced orally by Judge Woods, by W. B. Hill, Esq., of the "^Tacon bar. ��� �