Chalmers v. Swarttz

DAVIS, Circuit Judge.

This is an appeal from a decree of the District Court ordering Chalmers, trustee in bankruptcy, to refund a certain sum deposited by the bankrupts for a composition settlement with their creditors.

The bankrupts, David Gitnig and Natban Gitnig, trading as Joseph Gitnig & Sons, offered terms of composition which were accepted by their creditors. After the referee’s recommendation, the District Court confirmed the composition. An objecting creditor appealed, and this court reversed the decree of confirmation, holding that the bankrupts had issued certain false statements,…