Page:Federal Reporter, 1st Series, Volume 7.djvu/774

 762 FBDKBAIi BBi>i)BTEB. �same month, be testifies tiiat hifi sales to other parties in the ordinary retail trade amounted to $1,500, �At the time of these transactions with Quinn, Kahn, and Dub, and before any of the creditors had beg-un proceedings by attiftchment in the state courts against him. Dans employed Mr. W. Desson, an attorjiey of Macon, tp write to his credit- ors that on aocount of losses in business he cpuld not meet his obligations, and to silbmit a proposition of compromise. In addition to the proven debts, he owed debts for borro\red money; for, according to his testimony, he paid $3,300 to euch debts with the proceeds pf the sales to Quinn, Kahn, and Dub. So it appears that his total indebtedness was about, $11,000, and l^isproperty cposisted wholly of his stock, worth $8,000, and some. acootmts which he testifies were email in amount and value. Hence, it is perfeotly clear that Dans waB at that time insolvent. His own confessiwi is in the record that he had employed anattorney to write to his creditors and inform them that he was unable to pay his debts. Dans haa been and was a retail dealer in the articles composing his stock. He now suddenly becomes a wholesale dealer. At no time prior to these transactions had his sales averaged more than $1,100 per month ; at no time had any single sale amounted to more than $100 ; but his sales in the usual course of his business were small retail sales. �The law declares what the fact that a sale is made out of the ordinary course qf business of the debtor shall be consid- ered as proving : it is priina fade evidence of fraud. This bankrupt, after receiving $1,568 from what he testifies were ordinary retail sales in the month of Npvember, paid for borrowed money, as he alleges, to relatives and other friends, $3,300. This clearly establishes the fact that he was at- tempting to prevent his property from going into the hands of his assignee for distribution under the bankrupt aot, for that was the resuit of his acts,, and he is presumed to have intended that resuit. . He wholly fails to account for $3,400 of the money which came into his hands. - When he is asked what disposition he had made of his assets, he can only account for one-half. This stock, which had not been paid ��� �