In re Perley & Hays

ROGERS, District Judge.

This is an involuntary petition in bankruptcy by a single creditor against the partnership of Perley & Hays. A jury was waived, and the case submitted to the court for trial. The evidence on the part of the creditor shows that the bankrupts were burned out in business; that after being burned out they represented, in substance, that they could not pay the debt of the petitioning creditor, and could not “rake or scrape” more than 80 per cent, of his claim, which was $3,320. The bankrupt Perley also represented to the agents of the petitioning creditor that, if the latter…