Page:Federal Reporter, 1st Series, Volume 8.djvu/440

 426 FEDERAL REPORTER. �assent, bas been held not to be a "wilful or fraudaient" omission. In re Needham, 2 B. E. 387. A transfer is not, then, a fraud upon the act if made with the consent of all perspns in interest fairly ob- tained, howeyer unequal in its results the transfer may prove. Such a consent is a virtual waiver of all the benefits of the bankrupt act, and, when acted on'by the transferee,, is an estoppel against subse- quent incompatible claima under the act. In re Williams, le B. E. 132, 136; Johnson v. Rogers, 1 5 B. E. 1; In re Langley, 1 B. E. 559, 565; In re Schuyler, 2 B. E. 549; Iw re Kraft, 3 Fed. Eep. 892. For the same reason a grantee cannot be fxeld to "know" a. transfer to be a fraud upon the act if it is assented to by all the creditors known to him, or that upon reasonable inquiry he might and would have ascer- tained or have had reason to suspect. �Such, upon the testimony, appears to be this case. �The evidence shows that at the time this arrangement was made by the defendant no other creditons of Queen were known to or suspected by McCune, save those who look part in and were provided f or by the agreement. The defendant, before taking a transfer such as this, was douMless bbmid to make reasonable inquiry asto other creditors. But it appears that McCune had been aceustomed from time tp time to make such inquiries, and that, only a few months before, Queen, in answer to McCune's inquiries, had assured him that "all he owed in the world besides Mr. How were these circus employes and Mr. Calvin and Mr. Cple. AU of these debts were provided for in the arrangement of October 27th, and all of these parties, or their repre- sentatives, agreed to it, and warranted a fui! and absolute title in the defondaiit. Instead of there beirig any collusion, the parties were all hostile to each other, and the final agreement was apparently a fair settlement and compromise of the conflicting interests of the largest creditors^' while it provided meritoriously for the payment in full of all others known, being the wages and small debts owed by the circus business. AU of these debts the defendant seems to have paid — 73 in number^and varying in amount fiom $3 to $369 each. Only eight of them, however, exoeeded $50 each, and all the rest would apparently have been entitled to a preference under section 5101. No charge is made that the arrangement was notbrought about perfectly fairly as between the parties to it, nor that it has not been executed by the def endalnt in good faith as among themselves, and it seems to have been intended to provide for all the circus debts; nor does it now appear that there were any other debts belonging to that busi- ness. ��� �