Carnahan v. Schwab

This is a bill in equity filed by the appellants as creditors of Frederick Schwab, an insolvent, to obtain relief against a certain voluntary assignment made by said Schwab for the benefit of creditors, and against certain mortgages executed by said insolvent, whereby preference is given to certain of his creditors.

The theory of the complainants is that the execution of the assignment and mortgages belonged to one and the same transaction, and are in violation of section 2662, R. S. 1881,. that being the first section of the act providing for voluntary assignments.

The preferred creditors,…