Page:Federal Reporter, 1st Series, Volume 9.djvu/285

 270 FEDERAL REPORTER. �told him that the firm was good for $5,000 over and above all its indebtednesB, and he believed him. �The Buitswere commenced March 16th. The earliest indebtedness sued on in them became due as early as February llth; $2,682.81 of it fell due in February; $4,833 of it fell due in March, $3,000 on the fifteenth of March. Under the statute, the question is as to the insoivency of the Cadwells when the property was taken on the exe- cutions, and as to what the bank had at that time reasonable cause to believe, and what it then knew, — not as to insolvency at an earlier time, or reasonable cause to believe, or knowledge at an earlier time. The debtors stopped payment before the first of April. The day the bank sued them, or the day before that, Mr. Camp informed H. V. Cadwell that the bank was going to sue them. There can be no doubts that the debtors were insolvent on the sixth of April, at 8: 80 o'clock A. M., when the execution was levied. The total assets have tumed ont to be $2,296. Prier to the sixteenth of March they had fiailed, from want of means, to pay their business debts as they matured in the usual course of business. They were insolvent on
 * the sixteenth of March. About the middle of February H. V. Cadwell

icommenced conversing with Mr. Camp about his affairs. The bank ■Was a creditor of theirs. H. V. Cadwell tells the story thus: �"I wanted more money. I went into the bank one day. It was like this: I sent my deposit up by one of my help at the store. Mr. Woolworth, the cashier, was busy, and he lef t it. Pretty soon Mr. Camp sent word he wanted to see me, and I went up there. Mr. Camp threw eut $1,100 in paper I wanted discounted. I ealled him one aide and found in bank $1,500 in past-due paper, in addition to the $1,100 I had to place to credit, and which he had thrown out. I told him I could not get along without having that $1,100 dis- counted. He then wanted me to take up some of the past-due paper. I promised to give him a bond of iudemnity. Had no security but my own indorsements. I then went home and looked my matters over. I thought the flrm was worth $10,000, but when I came to look matters over I found I was not worth as much as 1 thought. After a tiine, at the same interview, they [the bank] put the $1,100 to my credit. He wanted a statement. I did not make a statement, but considered myself worth $5,000. After the conversa- tion the past-due paper continued to accumulate, and I promised if he would give me an additioual discount of about $3,000 I would take up the past-due paper and the $3,000 when it became due. I did take up the past-due. paper, but did not take up the $3,000. He allowed me to waive protest on the note at my request. Ile would not renew it, and it lay past due." �Then the suits were brought. The $3,000 referred to is, undoubt- edly, that which fell due March 15th, from notes of $750 each. They were made February 12th by the debtors, payable one month. ��� �