Thе action in the court below was by Mrs. Vogel in replevin, to recover the vats, casks, kegs and stock of distilled and fermented liquors рertaining to a brewery and saloon which she claimed as her own property in Ludington, Michigan, and certain other articles whiсh were made use of in and about the business. Judge was deputy sheriff, and had taken the articles as
It was not questioned that the property in suit had belonged to Albert Vogel, but the plaintiff below claimed that her father bought it of her husband for her, and that it was transferred to her in May, 1874. From that time she claims to have carried on the brewery and saloon which her husband had owned and carried on before; but for this purpose her husband was her agent, and it does not appear that plaintiff herself had anything to do with the business in person.
Very strong evidence was given to show that the whole transaction between Mrs. Vogel and her husband was colorable and fraudulent as to creditors, and the showing of any change of possession from Albert Vogel was very slight indeed. On the contrary, it was shown that for a year after the pretended transfer the receipts and shipments in the business were made in the name of Albert Vogel, and the goods for the price of which Gerlach recovered judgment, and which were malt and other articles which went intо the manufacture of beer, were furnished by Gerlach on the order of Albert Vogel, after the pretended sale, and without any knоwledge of it. Moreover, the monthly returns of the business for taxation under the internal revenue law were made by Albert Vogel in his own namе, and sworn to by him. In view of this very remarkable state of facts, and especially as the only change of possession in the business whiсh any one pretended, was from Albert Vogel as owner to Albert Vogel as agent, we think the court should have been very liberal in рermitting the defendant to put in evidence of all the facts and circumstances which could
The defendant offered to show that not only were the United States taxes assessed to and paid by Albert Vogel, but that the same was true of the State tax assessed uрon the business carried on in the brewery. This offer as to the State tax was overruled. The right to make the showing would seem to be the sаme as the right to show that the United States tax was assessed to and paid by Albert Vogel; and no reason is suggested in the brief for defendant in error why the evidence was received as to the one tax and rejected as to the other.
The tax on the business of mаnufacturing liquors is to be assessed to the person carrying it on. Public Laws, 1875, p. 275, § 4. In that respect it differs from a tax on real property, which if resident is to be assessed to owner or occupant, and if non-resident need not be assessed to any one. It would not, it is true, be a very significant fact if a business should be assessed to the agent instead of the owner; but when the agent appears to hаve been purchasing stock for the business in his own name, and the receipts and shipments were made as if he were the owner, we think the circumstance that he was also taxed as owner is not without some legitimate bearing on the question whether the ownership was not in fact colorable. The court, we think, should have admitted this evidence.
A further question arises on the chattel mortgagе. Mrs. Vogel claims that this was given to secure future advances, and that none were ever made. If that was the case Paul Vogеl acquired no rights in the property under the mortgage. Ladue v. Detroit & Milwaukee Ry. Co.,
The fraud intended by this instruction must be understood as a fraud upon creditors, since no other fraud was suggested on the trial. Thе question, therefore, seems to be this: whether one who -gives a mortgage without -consideration in order to defraud creditors is еstopped from disputing a full consideration when the mortgage has passed into the hands of a purchaser.
A mortgage fraudulent as against creditors may be avoided at their option; but how the intended fraud upon them can give it validity as to others is not exрlained in the briefs. The right of the creditors is to defeat it; but there seems to be no necessary relation between a right of one man to defeat it as a fraud upon him, and a right of another to affirm it because of the same fraud. The fraud which should give one rights must bе a fraud which in some way concerns his own interest.
Had this mortgage been given without consideration and for the purpose of being sold, the mortgagor would be held estopped from disputing, as against a purchaser, that it secured a real debt. Bloomer v. Henderson,
It is proper to say in this connection that though. Gerlaeh was a creditor, he can claim no greater rights
For the error in excluding the proposed evidence regarding the taxes the judgment will be reversed with costs and a new trial ordered.