Pirie v. Chicago Title & Trust Co.

Citations

• 182 U.S. 438
• 21 S. Ct. 906
• 45 L. Ed. 1171
• 1901 U.S. LEXIS 1235

Syllabus

<p>Frank Brothers were adjudged bankrupts in February, 1899. For a long time prior to that Pirie & Co. had dealt with them, selling them merchandise. Within four months prior to the adjudication of bankruptcy Pirie & Co. received from them $1336.79, leaving a balance still due and unpaid of $3093.98. When this payment was made Frank Brothers were hopelessly insolvent to the knowledge of Frank Brothers, but Pirie & Co. and their agents had no knowledge of it, and had no reasonable cause to believe that the bankrupts, by such payment intended to give a preference, nor did they intend to do so. Pirie & Co. proved their claim against the estate, and received a dividend thereon, which ‘they still hold.</p> <p>The provisions in the Bankrupt Act of July 1,1898, c. 541, § 60, that “ a person shall be deemed to have given a preference if, being insolvent, he has procured or suffered a judgment to be entered against himself in favor of any person, or made a transfer of any of his property, and the effect of the enforcement of such judgment or transfer will be to enable any one of his creditors to obtain a greater percentage of his debt than any other of such creditors, of the same class,” means that a transfer of property includes the giving or conveying anything of value, anything which has debt paying or debt securing power; and money is property.</p> <p>If the person receiving such preference did not have cause to believe that it was intended, he may keep the property transferred, but, if it be only a partial discharge of his debt cannot prove the balance.</p> <p>When the purpose of a prior law is continued, its words usually are, and an omission of the words imply an omission of the purpose.</p> <p>The object of a bankrupt act is, so far as creditors are concerned, to secure equality of distribution, among all, of the property of the bankrupt.</p> <p>Subdivirion c of section 60 of the bankrupt act is applicable to the cases arising under subdivision 6, and allows a set-of