185 Wis. 243 | Wis. | 1924
The first exception of the defendant relates to the reception as evidence of the statement of assets and liabilities contained in Exhibit 7. There was no verification of its. correctness, and it clearly was not substantive proof tending to show the insolvency of the Aromatic Products Company. It was admitted by Mr. Kay that he had no reason to believe that the exhibit was incorrect. We cannot say that it had no probative value as bearing on the question of whether the bank and its officers had reasonable grounds to believe that the Aromatic Company was insolvent.
One of the main objections raised by the defendant is that the whole of the evidence is insufficient to sustain the finding of the jury that the Aromatic Company was insolvent at the time the defendant received the payments. There is little difference of opinion between counsel as to the law relating to the subject. The statute prescribes that—
“Whenever the aggregate of his property, exclusive of any property which he may have conveyed, transferred, concealed, or removed, or permitted to be concealed or removed, with intent to defraud, hinder, or delay his creditors, shall not, at a fair valuation, be sufficient in amount to pay his debts,” insolvency exists. U. S. Comp. Stats. § 9585.
Counsel are agreed that under the statute the fact that a man is pressed and cannot pay his debts as they fall due does not constitute sufficient proof of insolvency, since it is common for both solvent and insolvent debtors to pay some of their debts and to leave others unpaid. Persons with ample assets may be without current funds with which to pay their debts. It is also true that in cases of this char
The next point urged by the appellant is that there was not sufficient proof of knowledge by the officers of the de
“A person has reasonable cause to believe when such a state of facts is brought to his notice and attention respecting the affairs and pecuniary condition of his debtor as would lead a prudent business man of intelligence to the conclusion that the debtor was then insolvent, and that the payment then made to him (such creditor) would, if retained, operate to give him a greater percentage of his debt than other creditors of the same class would receive.” Smith v. Powers, 255 Fed. 582, 586; In re Star S. B. Co. 265 Fed. 133; Goetz v. Zeif, 181 Wis. 628, 195 N. W. 874.
By the Court. — Judgment affirmed.