Irving Trust Co. v. Inc.

L. HAND, Circuit Judge.

The bankrupt, a small company selling clothes at retail, was in the habit of receiving suits “on consignment” from the defendant, Siroty; the title to remain in him until sale. On May 7, 1930, Siroty, becoming anxious because of a shortage of about six thousand dollars in the bankrupt’s remittances for consigned goods sold, and especially because two of its cheques for nearly sixteen hundred dollars had been dishonored, sent his assistant to its shop, who with its consent took away as security one hundred and fifteen suits (the bankrupt’s own), and secreted them in his…