¶1The act, section 3D, provides for two classes of cases: First, the fraudulent suspension by a merchant or trader of the payment of his commercial paper; and second, the suspension of payment for fourteen days without resumption. In the former case the debtor is supposed to be guilty of suspending fraudulently, with a fraudulent intent, and proceedings may bo immediately commenced to have him adjudged a bankrupt without waiting for the fourteen days to elapse, for if that time was granted him he might complete his fraudulent act, and remove his property beyond the jurisdiction of the court. In the latter case, if he is unable to resume payment of his commercial paper within the fourteen days, the law considers the merchant insolvent, and declares him a bankrupt. In this case, as it appears that no fraud was intended by the bankrupt, and the creditor testifies that the only fraud known to him is the mere non-payment of the debtor’s commercial paper, the discharge will be granted.
22 F. Cas. 780
In re Sohoo
U.S. District Court
Decided July 1, 1869
U.S. District Court · decided 1869-07-01
A petition in involuntary bankruptcy was filed by creditors, alleging that the debtor, “being a merchant, had fraudulently suspended payment of liis commercial paper, and had not resumed within fourteen days.” The debtor appeared and confessed the charge, and a decree was passed adjudging him a bankrupt, upon which he filed his schedules and surrendered his property, and complied with all the provisions of the statute.
Decided 1869-07-01