92 F. 798 | U.S. Circuit Court for the District of New Jersey | 1899
In April, 1893, the National Time-Stamp Company was, under proceedings begun in the court of chancery of New Jersey, declared to be insolvent, and Chauneey G-. Parker, Esq., was appointed receiver. He duly qualified, and entered upon the duties of his office. OBy a decree of the said court of chancery, the said receiver sold, at public sale, all of the assets of the said company, “subject to all chattel mortgages, judgments, and other liens thereon, subject to confirmation by the chancellor.” At such sale, Willard Richards, the complainant herein, was the purchaser, for the sum of $1,000. The sale was reported to the chancellor, and by him confirmed. It appears, from the agreed state of the case, that the said Richards, at and before the time of said sale, had actual notice of the existence of the mortgage given by said company to Frank H. Haliday, recorded in the office of the register of the county of Essex on October 22, 1892, and that said mortgage was claimed to be a lien on said property, and that, at the time of its execution, Haliday was an officer and director in the company. It also appears, from the record, that in August, 1892, the National Time-Stamp Company made its certain promissory notes, which were indorsed by the complainant, Richards, and discounted by certain banks, for the purpose of raising funds with which to pay creditors of the corporation, and among them the complainant, Richards, who was then the pres