In re Hale

• Decision Date: 21 February 1901
• Parties: In re HALE et al.
• Court: U.S. Court of Appeals — Fourth Circuit

107 F. 432

In re HALE et al.

United States District Court, E.D. North Carolina.

February 21, 1901

T. N Hill, for bankrupt.

Day &amp Bell, for creditors.

PURNELL District Judge.

The firm of Hale Bros., engaged in a general mercantile business having two stores,-- one at Halifax and one at Tillery, in Halifax county. The firm was composed of L. H. Hale and Mary C. Hale, partners trading as Hale Bros., be adjudged bankrupt. March 21, 1899, subpoena issued to L. H. Hale and Mary C. Hale, partners trading as Hale Bros. April 20, 1899 adjudication adjudging L. H. Hale and Mary C. Hale bankrupts. Partnership not mentioned. Order of reference same day, L. H. Hale and Mary C. Hale having been adjudged bankrupt. June 13, 1899, trustee elected by creditors of Hale Bros. July 24, 1899, trustee's bond filed as trustee of Hale Bros. July 24, 1899, petition for discharge of L. H. Hale and Mary C. Hale 'from debts provable against his estate. ' No reference to partnership or firm, except in title, and signed by individuals. August 21, 1899, objections to discharge filed, because said bankrupts failed to keep books of account or records from which their true condition might be ascertained; alleging frauds, but not charging an offense punishable by imprisonment under the act. January 11, 1901, application for hearing by the judge, and order setting down petition for discharge for hearing February 11, 1901, when the same was heard, counsel pro and con being present. Depositions read and cause heard. Answer to objections filed on same day of hearing. Order by referee on referee's book of proceedings authorizing and directing trustee to enter suits to recover assets of bankrupts. The schedules are signed by L. H. Hale for Hale Bros., and show debts amounting to $10,526.66. No property of the individual members of the partnership is included in the schedules, or claims against them proved.

The depositions taken are voluminous. It is not deemed necessary to go into a full consideration of the questions raised or discussed at present. On November 25, 1898, the stock of goods at Tillery was sold, and the bill of sale therefor was registered with the general assignment dated November 30 1898,--the act of bankruptcy set out in the petition. Both of these instruments were within four months of the adjudication, and void, not because of the frauds alleged and argued, but because the act of congress makes them void. Being void, no rights or property were acquired under or by virtue of either. The record shows the referee on the 29th day of July, 1899, entered an order authorizing and directing the trustee to enter such suits as he was advised were necessary to collect the assets of the bankrupt firm, trustee required by the bankruptcy...