DEPARTMENT OF FORWARDED BALANCES |
| DIRECTOR Yisrael Steele |
ABOUT
J. W. Vamlen. formerly a member of the firm, but who retired prior to conveyance, and who, as far as we can see, is now disinterested, states that F. M. Vnnden & Co. in December, 1894,—date of deed to wife,—was solvent, and that the assets of the flrm would exceed the liabilities by $10,000. He also shows that merchandise in stock was worth $13.000, and that open accounts were reported good to the amount of $15,000. It is argued, however, that, in order to satisfy existing creditors, and prevent them from attacking the conveyance of December 18, 1894, \ anden conveyed to them, by special assignment, the property purchased of these complainants; that they are secured by complainants' goods, and therefore do not question the voluntary conveyance. It suffices to say, in answer to this position, that it does not appear that any of the goods purchased of these complainants are, as a matter of fact, embraced in said assignment; and, again, it is argued that the conveyance to the wife was executed as a cover for future schemes of fraud, and with a view of contracting new debts. It is said that, if a voluntary conveyance is made immediately before engaging in some hazardous business, or obligations are incurred so soon after the conveyance as to warrant a presumí)! ion that actual fraud was intended, or other circumstances lead to the same inferen«.', a deed will be adjudged fraudulent and void, as well against subséquent, as existing, creditors; citing ¡Savage v. Murphy, 90 Am. Dec. 733. But we und no facts or circumstances in this case indicating that such a fraud was meditated, or in fact practiced, by these defendants. Un the contrary, the new indebtedness was not con
tracted nntil more than six months had elapsed from the date of the voluntary conveyance, and. In view of the Immediate registration of this instrument, these subsequent creditors cannot claim that they relied upon the security of this property.