Of risk by employé, see "Master and Serv- See "Carriers," § 2. ant," § 1.

$ 3. - Assignment, and title, rights, Collections made by a creditor of a bankrupt

and remedies of trustee in gen- within four months prior to the bankruptcy on eral.

securities previously assigned to it as collateral A precatory trust, created by a testator in when the debtor was solvent do not constitute favor of his sons by a will leaving all of his voidable preferences. In re First Nat. Bank property to his wife, held to have been fulfilled (C. C. A.) 100; First Nat. Bank v. Holt, Id. by her in her lifetime, so that property devised by her to one of the sons, who became a bank

Although the rights of a trustee in bankrupt before her death, came from her estate, ruptcy and those of an assignee in insolvency and not the father's, and was not a part of his under a state statute are defined in similar lanassets in bankruptcy.-In re Harper (C. C. A.) guage, yet a state statute, making a certain 105.

transfer void as against an assignee, eo nomine, *Under Bankr. Act July 1, 1898, c. 541, $ bankruptcy.-In re Loveland (C. C. A.) 838;

does not make it void as against a trustee in 70. 30 Stat. 565 (U. S. Comp. St. 1901, p. 3451), In re Littlefield, Id.; Putnam v. Loveland, Id. which vests in a trustee all the rights of a bankrupt in respect to his property, such a trustee Where a mortgagor after paying part of the may maintain an action to recover usurious in- mortgage debt borrowed further sums, the terest paid by the bankrupt.-Reed v. American- amount of which by agreement was to be added German Nat. Bank (C. C.) 233.

to the remainder due thereon, the mortgage is Property in possession of a bankrupt under a valid lien in equity for the full sum as so unrecorded contracts of conditional sale held to increased as against the mortgagor's trustee in have passed to his trustee both under Rev. St. bankruptcy, whether tested by the law of MasMe. c. 113, § 5, which makes such unrecorded sachusetts or the bankruptcy act. In re Lovecontracts void except as between the parties, and land (C. C. A.) 838; In re Littlefield, Id.; PutBankr. Act July 1, 1898, c. 541, § 70a(5), nam v. Loveland, Id. 30 Stat. 565 [U. S. Comp. St. 1901, p. 3451].

*A sale by an insolvent company in bulk of -In re Perkins (D. C.) 237.

its stock of merchandise, which constituted prac Machinery in the possession of bankrupts attically all of its property, held made with intent the time of their bankruptcy held to have been to hinder, delay, and defraud its creditors, and acquired by them under contracts of conditional to be voidable at suit of its trustee in bankruptsale, and not of bailment under the law of Penn-cy:-Johnston v. Forsyth Mercantile Co. (D. C.) sylvania, and to have passed to their trustee | 268. under Bankr. Act July 1, 1898, § 70a(5), c. 541, 30 Stat. 566 [U. s. Comp. St. 1901, p. 3451]. the property for the benefit of the mortgagee

*An oral agreement by a mortgagor to insure -In re Burt (D. C.) 267. Where machinery sold and shipped to a cor- struction, gives the mortgagee an equitable lien

whose money was used in its purchase and con poration to be paid for in cash was delivered upon the proceeds of the insurance after the without such payment, at its request and prom- property has been destroyed by fire, as against ise to send a check, which was not done, and the mortgagor or his trustee in bankruptcy, al afterward the seller's agent settled the claim though such agreement was made after the by taking negotiable youchers for the price se- mortgage was given, and the policies had been cured by collateral, the title to the machinery issued, which were not in terms for the mort passed to the purchaser at least on such set-gagee's benefit.-Hanson v. W. L. Blake & Co tlement, and on its subsequent bankruptcy to (D. C.) 342. its trustee.-In re Cullman Fruit & Produce Ass'n (D. C.) 372.

Where a bankrupt on a purchase of property Circumstances under which a court of equity on contracts of conditional sale agreed to have might permit a rescission of a contract of sale it insured for the sellers' benefit, and obtained on the ground of mistake in the representations policy payable to them, the sellers had an equi where the parties could be restored to their table lien on the proceeds of the insurance, al original position may not warrant such relief though the bankrupt took out a renewal policy after the purchaser has become bankrupt, and payable to another, of which fact they had na especially where the specific property purchased knowledge.--Hanson v. W. L. Blake & Co. (D cannot be restored.-In re American Knit

*A chattel mortgagee, whose mortgage was not A referee in bankruptcy is not disqualified by recorded as required by statute until after the interest under Bankr. Act July 1, 1898, c. 541, bankruptcy of the mortgagor, and who after the § 39b, 30 Stat. 556 [U. S. Comp. St. 1901, p. lestruction by fire of the greater part of the 3136], where his only interest is the compensaproperty took no steps to obtain possession of tion he will receive by way of fees.-In re StroEhe remainder, held to have no equitable lien bel (D. C.) 692. upon the proceeds of the same when sold by the Erustee in bankruptcy.-Hanson v. W. L. Blake tion of a bankrupt at the request of the re

Stenographer's fees charged for the examina& Co. (D. C.) 342.

ceiver before a special commissioner are pay*The assignment by a bankrupt within four able from the bankrupt estate only after apmonths prior to his bankruptcy, and while in proval of the bill by the receiver, and proof solvent, of a claim against an insurance com- that all the examination was necessary and pany for a fire loss, to secure a prior indebted- of benefit to the estate.-In re Stark (D. C.) hess, was void as a preference, and created no 694. legal or equitable lien in favor of the assignee to the insurance money as against the trustee in 3co Stat: 555 [U. s! Comp. St. 1901, p. 3435),

Bankr. Act July 1, 1898, $ 38, subd. 5, c. 541, bankruptcy.--Hanson v. W. L. Blake & Co. authorizing a referee in bankruptcy 'to employ D. C.) 342.

a Evidence held to sustain a referee's finding rupt held not to apply to hearings before a spe

stenographers on an examination of the bankthat certain mortgagees of the bankrupt, who cial commissioner.-In re Stark (D. C.) 694. received their mortgages within four months prior to the filing of the bankruptcy petition, had

* Where the receiver and trustee continued no knowledge of the bankrupt’s condition, and to occupy premises leased by the bankrupt withthat their mortgages were therefore valid, but out agreement as to rent, the landlord is enthat another mortgagee had notice of such con- titled to rent on a quantum meruit, but canHition, and that his mortgage therefore created not recover for power which was not used.an invalid preference.-In re Tindal (D. C.) 456. In re Grignard Lithographic Co. (D. C.) 698. A court of bankruptcy has no jurisdiction to

Where the proceedings of a receiver in bankadminister property set aside to a bankrupt un- ruptcy were beneficial to the estate, and his der his claim for exemption.-In re Sorg (D. C.) expenses incurred seemed reasonable and neces550.

sary at the time, they would be allowed, though

it subsequently appeared that the receivership Evidence held not to sustain the claim of a seller of goods to a bankrupt that such sales case justified.-In re Krause (D. C.) 702.

was more expensive than the necessities of the were induced by fraud on the part of the bankrupt in knowingly making materially false state- $ 6. Actions by or against trustee. ments of assets, such as would entitle the seller A Circuit Court of the United States has juto rescind.-In re American Knit Goods Mfg. risdiction of an action by a trustee in bankCo. (D. C.) 906.

ruptcy against a national bank to recover usuri

ous interest received by the defendant from the 5 5. Administration of estate.

bankrupt in violation of Rev. St. 88 5197, 5198 A court of bankruptcy has jurisdiction to [U. S. Comp. St. 1901, p. 3493]. - Reed v. Ameriorder a sale of property of a bankrupț upon can-German Nat. Bank (C. C.) 233. which a lien is asserted free from such lien, and without first determining either its validity

A petition by one who sold goods to a bankor amount.-In re Loveland (C. C. A.) 838; rupt firm during several months prior to its In re Littlefield, Id.; Putnam v. Loveland, Id! bankruptcy, seeking to rescind the sales for

v

, ? | The giving of false, vague, and evasive testi-hearing, unless it not only alleges all the facts

fraud, will not be considered and referred for mony by an alleged bankrupt on his examination necessary to entitle the petitioner to rescind, Defore a special commissioner, with the inten- but also sets out all the transactions and detion of misleading the court and concealing as- scribes the goods in detail.-In re Levi & Picard sets of his estate, is a misbehavior, and con- (D. C.) 262. stitutes a contempt which the District Court has power to punish under Rev. St. 8 725 [U. Where judgment was obtained in a state court 3. Comp. St. 1901, p. 583], on a summary hear- vacating the lien of a mortgage on the prong without a jury.-Ex parte Bick (C. Č.) 908. сeeds of certain of the bankrupt's property, and Bankr. Act July 1, 1898, § 21a, c. 541, 30 Code Civ. Proc. N. Y. & 1351, the appeal was

no stay was obtained pending an appeal under Stat. 552 [U. S. Comp. St. 1901, p. 3130], pro- ineffective to delay the trustee's disbursement cerning the acts, conduct or property of a bank- of the fund free from the mortgage lien.

In

cupt whose estate is in process of administra- re National Lock & Metal Co. (D. C) 690. Eion under this act,” does not authorize an or

pended money thereon is no defense to a pro-facts being made known to the court, such suit ceeding by the trustee for its recovery, though will be dismissed.-Cruchet v. Red Rover Min. it may create a claim against the estate.-In Co. (C. C.) 486. re Nechamkus (D. C.) 867.

Where bankruptcy intervened pending supple§ 7. — Claims against and distribu- mentary proceedings on a judgment provable tion of estate.

and dischargeable in bankruptcy, the creditor Where all the known assets of a bankrupt was not entitled to the vacation of a stay reestate have been collected and reduced to mon- quiring further proceedings for the examinaey, a final dividend may be declared under tion of the debtor and third persons in bankBankr. Act July 1, 1898, Š 65b, c. 541, 30 Stat. ruptcy proceedings.-In re Burke (D. C.) 703. 563 (U. S. Comp. St. 1901, p. 3448), as amended by Act Feb. 5, 1903, c. 487, § 15, 32 Stat.

§ 10. Exemptions. 800 (U. S. Comp. St. Supp. 1905, p. 690], at ment on a note waiving exemptions and served

*An attachment execution issued on a judg, any time after the expiration of three months after the declaration of the first dividend, and on the debtor's trustee in bankruptcy, who holds any creditor who has not then proved his claim proceeds of exempt property sold, is invalid and is debarred from participating in the fund.- fund, which is in custodia legis, and not sub

ineffective to create any lien or claim upon the In re Bell Piano Co. (D. C.) 272.

ject to attachment.-In re Sorg (D. C.) 550. *Debts assumed by an individual on a purchase of property, and afterwards by a partner: lars, and worn by' a bankrupt himself, is not

*A diamond ring, worth several hundred dolship of which he became a member by agreement between the partners, held provable against the exempt under a state statute as “wearing appartnership estate in bankruptcy.-In re Sick- parel.”—In re Gemmell (D. C.) 551. man & Glenn (D. C.) 508.

The wife of an absconding bankrupt held enWhere a salesman was not entitled to a pref- titled under the law of Ohio to claim $500 out| erence for wages under Bankr. Act July 1, 1898, of the proceeds of the bankrupt's estate as a c. 541, 8 64, subd. “b,” par. 4, 30 Stat. 563[U. S. homestead exemption, where the property conComp. št. 1901, p. 3447], at the time of a bank: sisted of liquors, which, if taken in specie, she ruptcy adjudication against his employer, he could not dispose of without being subjected could not obtain such preference under the to license taxes which would render the examendatory act of June 15, 1906, extending the emption of no practical value.-In re Luby (D. preference right to traveling and city salesmen. C.) 659. -In re Photo Electrotype Engraving Co. (D. When a bankrupt's exemption allowed by the C.); In re Vredenburgh's Claim, Id. 684.

state law for the benefit of the family will Under Bankr. Act July 1, 1898, § 57, subd. be defeated unless its allowance be in cash out| ,. 541, . U.'s,

oppose | true financial condition, held sufficient.-In re
Nathanson (D. C.) 645.

A finding by a special commissioner to whom
was referred a bankrupt's application for dis-
charge, and objections thereto that a transfer
That a bankrupt gave evasive and disrespect- made with intent to hinder, delay, or defraud
of property by the bankrupt was not in fact
ul answers to questions concerning his prop-creditors, should be followed unless there is
rty held no ground for denying his discharge; no evidence to support it.-In re McKane (D.
t not appearing that he willfully concealed ma-
C.) 674.
erial testimony.-In re Fanning (D. C.) 701.
14. — Proceedings in opposition to

*Point annotated. See syllabus.