151 F. 567 | 4th Cir. | 1907
The trustees of the bankrupt filed their bill of complaint in the District Court for the District of Mary
The main purpose of the bankrupt act is to secure an equal division of the property of the bankrupt among his creditors, and this purpose has certainly been defeated here if the transaction is allowed to stand, for W. EL Roberts has received payment in full of his indebtedness; practically all of the property of the bankrupt is covered by the mortgages, and the other creditors will get nothing. If the mortgages had been given directly to William El. Roberts, it could not be pretended that there was not an unlawful preference, and a transaction assailed as a preference must be determined by its effect and not by its form. That Bramble was insolvent on March 23, 1905, is clear, for his indebtedness on that date, according to the testimony of his bookkeeper, was something over $23,000. The mortgages covered his entire property, and eight days thereafter he filed his petition in bankruptcy. That William El. Roberts has received a preference is also clear, for his debt has been paid in full, and the purpose and intent to give a preference is properly inferable from the facts proved. The negotiations through which this result was obtained were all made by Samuel Roberts, a brother of the creditor, and a brother of the mortgagee. He it was •that impressed upon Bramble that the Old Town Can Company “had to have money,” and he it was who told Bramble that he “could give me
The judgment of the court below is affirmed.