Durham Paper Co. v. Seaboard Knitting Mills

PURNELL, District Judge.

A petition asking for an adjudication in bankruptcy of the Seaboard Knitting Mills was filed, alleging, as the act of bankruptcy, a general assignment. The answer admits the assignment, made nearly four months before the filing of the petition, and that the corporation is insolvent. As a defense the answer alleges petitioners have filed their verified claims with the clerk of the superior court, as required by the state assignment law, and permitted the property to be sold and a large part of the proceeds disbursed; hence have made themselves parties to the assignment,…