Page:Federal Reporter, 1st Series, Volume 9.djvu/283

268 FEDERAL REPORTER. �of bankruptcy in the petition. The creditera were also misled by what amounted, substantially, to a declaration by H, V. Cadwell and by McCartin and Williams that the bank had not brought the suits in question, and by the declaration of McCartin and Williams thkt they, aeting for the debtors, and in their interest, and with fairness towards the inquiring creditors, would allow no judgments of any amount to be taken against the debtors. McCartin & Williams were distinctly informed, on behalf of Mr. Brown and Mr. Grouse, that they desired the information they were seeking with a view to action in ref- erence to putting the debtors into bankruptcy. H. V. Cadwell, aeting and speaking for the debtors, misled Mr. Brown and Mr. Grouse by what he said on the question of the suits by the bank, and did so intentionally, to seeure the consummatipn of his desire that the judg- ments should precede a petition in bankruptcy. �McCartin & Williams, ocoupyjng the double position of attorneys for the debtors and attorneys for the bank, and holding themselves out to Mr. Grouse and Mr. Brown solely as attorneys for the debtors, and not making known their position as attorneys who had brought the suits for the bank, allowed H. V. Cadwell to say, and themselves said, to Mr. Grouse and Mr. Brown what amounted, in substance, if it did not in words, to an affirmative statement that the suits which they had brought for the bank had not been brought. This amounted to affirmative action and procuracy by the debtors, and by McCartin )fe Williams aeting for them and on their behalf, and also on behalf of the bank. The purpose was, and the effect was, to delay the exe- cution of the announced intention to put the debtors into bankruptcy until the judgments should have matured. It must be presumed, under the cireumstances, unless the contrary is shown, that if Mr. Brown or Mr. Grouse had been informed on March 80th of the suits by the bank, the petition in bankruptcy would have been filed during the six days which elapsed between March 30th and April 6th. As it was it was filed only half an hour after the levy. Mr. Brown testifies that they got the information on March 30th on which the petition was filed. Mr. Brown testifies that the debts proved against the bankrupts amount to $24,206.22. The creditors' petition shows that the debts set forth in it, to the seven creditors who bring it, amount to $8,152.19; that all of these debts were contracted before March 30th except one to Nill & Jess for $41.13, which was contracted March 31st; and that Nill & Jess were creditors to the amount ot $983.47, in addition to the $41.13, for debts contracted before March 30th. Therefore, not only were the debts set forth in the petition ��� �