Page:Federal Reporter, 1st Series, Volume 7.djvu/775

 NISBET V. QDINN. 763 �for, belonged in equity to the sellers, and the proceeds oi it ought in justice tp be paid to them. �The evidence sho^s that Dans made these sales for two parposes: (1) To pay creditors whom he favored, (there being no proof that they were not creditors;) and (2) to defeat the provisions of the bankrupt act, and to prevent bis property from coming to bis assignee in bankruptcy. �The only real question in the. case is, did Quinn know that these sales were made for such illegal purposes ? The very fact that these sales were made out of the ordinary course of business of the seller was prima facie evidence of fraud. On this point the testimony of the defendant is in the record. Quinn paid $1,100 for this purchase. He had been in the habit of buying goods from Dans, and prior to November, 1877, his purchases ranged from $e to $24 per month. Being in the habit of buying goods from Dans, he knew the nature of Dans' business. He himself was doing business, partly in the same line, in the same town. To say that he did not know the nature of Dans' business would be to shut our eyes to the plain facts in evidence. Quinn's entire stock was worth about $1,000. His entire sales from gro- ceries and all his merchandise amounted, according to his testimony, to about $600 per month. Yet he buys goods from Dans at one purchase worth $1,100. The law declares what this establishes. Quinn says that he did not know that Dans was acting in contemplation of insolvency, or with any design to hinder or impede the operation of the bankrupt act; but the law says that he did know; that when he bought of a small retail dealer a large amount of goods at Wholesale, that fact conveyed knowledge to him of the illegal purposes set forth in the bankrupt act, (Rev. St. § 5130.) If he could show that he inquired of Dans what was the object of the sale, and Dans had told him that it was to raise money to pay these debts, it might relieve him. But he shut his eyes, hoping to make a profit and a speculation out of the purchase. Quinn may not have been interested in defrauding Dans' creditera, but he was aiding Dans in so doing, and he muat take the consequences. ��� �