In re Chase
In re Chase
Opinion of the Court
The opinion of the court was delivered by
The case, without going into u'nnecéssary details,
is shortly this. The bankrupt, on the first of February, 1842, as appeal's from his schedule,- was deeply insolvent, being indebted to
It is to be borne in mind, that the confession of judgment by the bankrupt was without any previous attachment, and for a sum sufficient to cover all his property, with the power to issue immediate execution. Execution was immediately issued, and all his property, except household furniture' and other property exempt from attachment, was immediately taken upon it. From the manner of the transaction, the suddenness and haste with which the proceedings Were begun and carried through, the transaction, from the very statement of it, connected with the fact of the utter insolvency of the bankrupt, is liable to very strong suspicion.
But let us see how the case stands on the testimony; for it is proof, and not suspicion without proof, that is to decide it. There is no reason to doubt, that the debt of A. R. Vail & Co. was a bona fide debt; and it is true, that Aaron R. Vail, one of the company, says he called on the bankrupt for security, and that the judgment Was confessed on his request, as a means of saving cost. This testimony might be material, if the judgment had been for an amount covering only a part of the bankrupt’s property; but the judgment being for an amount sufficient to absorb the whole of his property, and he being necessarily conscious, that it must take the whole to satisfy it, it is immaterial, whether it was given on the request and at the instance of the creditors, or not. But admitting it to be material, and that the request was accompanied with such a degree of urgency and importunity on the part of the creditors, as would, under ordinary circumstances, repel the presumption of the confes. sion being voluntary, yet the question is, whether the confession was really made in consequence of that importunity, or with a view,
We have already stated the manner of the transaction ; now let us look to some other circumstances, which attended it. Besides there appearing to be no unwillingness to make the confession, but a very ready acquiescence and compliance on the part of the bankrupt, it is evident, that he knew, at the time of the confession, that the execution would be levied the same evening. He told Harrison Ballard, in the evening, before the officer came, that he wanted to pay him, as he expected his creditors would break upon him; and he accordingly forthwith turned out to Ballard a cow, .and at the same time turned out to his brother forty bushels of corn in the ear. After the officer had arrived, he told Marcus Bartlett, that he had expected him, and had tried to give Bartlett a hint of it before. And Aaron R. Vail, one-of the creditors, says, he thinks the bankrupt might have understood, that the execution was to be levied the same evening after the confession of the judgment.
But farther, the bankrupt told William B. Haskins, who went to see that the officer did not take some grain the bankrupt had turned out to him, that the creditors would not take any thing he did not want they should take. He also told Ballard, at the time he turned out the cow to him, that the creditors would not take any property, which was .turned out to him, or his brother, though it remained there.
The testimony, thus far, gives the transaction the appearance, at least, of being a very amicable one; for it shows, that the bankrupt supposed, and acted under the belief, that there was a very good understanding subsisting between him and the execution creditors. Indeed, the transaction seems to have very little of an adverse character about it. When the officer came, who, as we have seen, was not an unexpected, and, I should judge, not an unacceptable visitor, the bankrupt, anticipating the wishes of this usually unwelcome functionary of the law, very promptly lighted his lantern and went
But the most material part of the testimony remains to be stated. It appears, that the bankrupt, at the time of the confession of judgment, held a lease from Caleb Paris of a farm in Danby, for the term of six years from the first of March, 1837, at an annual rent of $700,00. Besides the rent for the year 1842, which was unpaid, he was indebted to Paris in the sum of $500,00, for cattle received from him by virtue of the lease. When the latter sum would be payable does not appear; but the rent would become due the first of March, and the lease would not expire until one year from that time.
Now, Stephen Roberts testifies, that, before the property was taken in execution, the bankrupt told him, that unless he could make an arrangement with Paris, and get a reduction of the rent, he should not pay him, though he could; and after the property was taken, he told the witness, he expected to have the property back, if he succeeded in making an arrangement with Paris, which he thought he should be able to do. Allen Roberts also testifies, that the bankrupt told him, that he did not know but he should have all the property back, if he could make an arrangement with Paris. And Caleb Buffum says, that after the property was taken, the bankrupt -told him, that he could not afford to pay so much rent for the farm; that he would give $350,00 for the year’s rent then due, and had the money in his pocket to pay it, and would give $400,00 a year for the remainder of the term. On the witness’ inquiring how he could carry on the farm without the stock and tools, he replied, that he could have back the property, which had been taken, whenever he pleased. Now, upon this testimony, can any one be at a loss concerning the motive and object of the bankrupt, in giving, the confession of judgment? Was it not to bring Paris to terms, and force him to reduce the rent of the farm, by presenting to him the alternative of doing so or getting nothing ?
The testimony of Vail, one of the execution creditors, goes rather to confirm this view of the case, than otherwise. He says, there
There is another part of the testimony, which ought not to be omitted. It appears, that thirteen cows seized on the execution were afterwards returned to the bankrupt, kept by him ten or twelve days, and then sold by him to a clerk in the store of one of the execution creditors. The bankrupt, on his examination, says the cows were returned to him in consequence of a question arising, whether the cows belonged to him or to Paris ; that he sold them to make a payment on the execution; and that after the sale they were driven away in the night time, for the purpose of concealing from Paris where they were.
From all the circumstances of the case, I repeat, I am forced to
Reference
- Full Case Name
- In the matter of Ephraim Chase
- Status
- Published