The main headings of the American Bankruptcy Reports Digest with the
section numbers under each, have been used in this Index. Such headings
have been arranged in alphabetical order, and cross references made, so that
other cases in point may be found by referring to the same section in the
Digest and Supplements.
ACCOUNTS, FAILURE TO KEEP.
See "Rights, Duties and Liabilities of Bankrupt"; "Suits and Actions By
and Against Trustee,"
§ 156. Insolvency as element.
Determination of insolvency.
Where a corporation entered into an agreement with another corpora-
tion for the operation of coal lands by which it was agreed that the operat
ing company should advance "in its reasonable discretion" such sums
as should be necessary for the operation of the plant, and should deduct
such advances from the net income, such operating company is not a creditor
for the amount of the advances made over and above the amount received
from the operation of the mine, and such amount should not be considered
in determining the bankrupt's insolvency. McAbee Powder & Oil Co. v.
Penn-American Gas Coal Co....
§ 161. Fraudulent transfer, concealment or removal of property.
§ 163.
The debtor's intent to prefer is an essential element of the act of bank-
ruptcy by giving a preference and must be disclosed in the petition. Mat-
ter of Advance Oil Co.......
Where the statutes of a state require that a deed of trust be recorded
in order that it may be effective as against creditors, an involuntary
petition in bankruptcy may be filed within four months from the time that
such instrument is placed on record, regardless of the date of its execution.
Matter of Sparks....
847
To authorize an adjudication of bankruptcy, it must appear that the
preferential transfer alleged to constitute an act of bankruptcy was made
with the intent to prefer the creditor to whom it was given. Tropical Paint
& Oil Co. v. Southeastern Farm Implement Co..
What is not preferential transfer.
A mortgage given to secure a creditor, under an agreement that the
mortgagee extend the time for payment to allow the debtor to pay up
other creditors, and where debtor thought he could pull business through
period of depression and pay all creditors in full, is not a preference
which will constitute an act of bankruptcy. Tropical Paint & Oil Co. v.
Southeastern Farm Implement Co.......
§ 172. Preference by legal proceedings.
§ 174.
"Final disposition" defined.
The failure of an insolvent judgment debtor to discharge the judgment
lien within five days of the expiration of the four months period after the
judgment becomes a lien is not an act of bankruptcy under section 3a (3)
of the Bankruptcy Act. Matter of Godwin..
No act of bankruptcy is shown in Connecticut by the stockholder of
a corporation placing the business in the hands of the directors as
trustees for the purpose of liquidation; and even if it were an act of
ACTS OF BANKRUPTCY-Continued.
bankruptcy as a receivership or assignment for benefit of creditors, it
is not a continuing one and therefore if it took place more than four
months before the petition was filed, an involuntary petition could not
be based thereon. Jacobs v. Collegiate Prep. School, Inc...
Where the alleged act of bankruptcy is the appointment of a receiver
for the alleged bankrupt in a state court, the petitioning creditors are not
limited in their proof to the record of the state court but may offer other
evidence that the alleged bankrupts were insolvent within the bankruptcy
definition of insolvency and, being insolvent, that the receivership pro-
ceedings were instituted to distribute the property of the alleged bank-
rupt because of insolvency. (Special master's report approved.)
of Cleveland Discount Co.....
See "Petition," etc., § 276 et seq.
ADMINISTRATION, SETTLEMENT AND DISTRIBUTION IN
GENERAL.
§ 573. Appraisers and appraisal.
(G. C. A., 1st Cir.)
A referee in bankruptcy has no authority to make an allowance of
appraisers' fees, without first giving notice to the creditors of the bankrupt.
Matter of Plymouth Rubber Co....
Where controversy was referred to special master who acted with powers
similar to a referee in bankruptcy and he ordered that the question as to
certain claims be submitted to arbitration, the objection that such order
was erroneous is waived if the claimant selects arbitrators without applying
to the District Court for instructions to direct the master's course.
of Patterson-MacDonald Shipbuilding Co....
§ 575. Compromise.
(C. C. A., 4th Cir.)
The objection that an agreement of compromise was recommended and
approved without petition and notice to creditors is waived where it
appears that the objecting creditor, at a legal meeting of creditors, entered
ADMINISTRATION, ETC.-Continued.
upon a consideration and discussion of compromise without objection to
lack of petition and due notice. Pullman Couch Co. v. Eshelman.... 897
Where the claim of a bank to security depended upon subrogation to
the rights of another claimant who claimed to be secured by a deed of
trut, the two claims were so closely associated that a compromise is
shown by the allowance of the surety's claim as unsecured although the
bank's claim is allowed as secured and to the amount claimed. Pullman
Couch Co. v. Eshelman....
An order of a District Judge, approving or rejecting a proposed com-
promise, will not be interfered with unless it clearly appears that there
was an abuse of discretion. Pullman Couch Co. v. Eshelman.. . . . . .
Evidence exam ned and held sufficient to furnish substantial reasons
for the approval of a compromise of a claim of the president of the bank-
rupt corporation alleged to be secured by a deed of trust, and the claim
of a bank on a note indorsed by the president, and on which the bank
claimed to be subrogated to the security of the trust deed. by allowing the
president's cla'm as unsecured and the bank's claim as secured. Pullman
Couch Co. v. Eshelman....
§ 581. Completion of bankrupt's contracts.
A lease, although it contains a provision against its assignment, is not
cancelled by the lessee's bankruptcy, and the lessee's trustee may adopt
or reject it and if he adopts it he becomes an assignee and is liable for
the rent. Silbert v. Keton..........
§ 584. Expenses of administration.
(C. C. A., 9th Cir.)
Where the objection that a claim for services was not verified was first
raised in the District Court, such court may allow an amendment to cure
such defeet. Matter of Patterson-MacDonald Shipbuilding Co....... 95
The allowance of a lump sum to one employed by a trustee for services
and disbursements without segregating the allowance for services and the
allowance for disbursements is not objectional. Matter of Patterson-Mac-
Donald Shipbuilding Co.....
ADMINISTRATION, ETC.-Continued.`
A trustee has the right to employ an officer of a bankrupt corporation
to perform services at the expense of the bankrupt estate outside of any
services required of the officer under the provisions of the Bankruptcy Act.
Matter of Patterson-MacDonald Shipbuilding Co..
The description of real estate offered for sale is sufficient although it
does not include appurtenances included in the sale. Matter of Hiner 286
Confirmation of a sale of the bankrupt's property will not be refused
because of two different dates given in different advertisements where it
appears that on the earlier date the sale was continued until the later date.
Matter of Hiner
A court of bankruptcy may sell free from liens property which is within
its jurisdiction but where property is within the exclusive control of a
state court by seizure more than four months before bankruptcy, it cannot
sell such property free from the liens of the attachment for which seizure
was made. Matter of Thompson..
A petition for leave to sell property free from liens will not be granted
unless there is a fair prospect that the sale will be beneficial to the estate.
Matter of Feeney Tool Co......
§ 606. Rights and liabilities of purchasers.
After confirmation of a sale by a trustee and a conveyance to the pur-
chaser, the bankruptcy court is without jurisdiction at the suit of the
purchaser to enjoin the sale of the same property by order of a state court.
Matter of Thompson...
Where bankrupt was a corporation which took over all the assets and
liabilities of another corporation but the deed to such corporation's real
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