The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921. Page: 13
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CITY NAT. BANK V. SLOCUM 13
believe the mortgagor was insolvent, and the burden of proof was not
changed by the amendment of 1910 of the Bankruptcy Act.
17. Bankruptcy @=166(4)-Statute adopted prior judicial definition of "rear
sonable cause to believe."
When the Bankruptcy Law (Comp. St. 9585-9656) was enacted, the
phrase "reasonable cause to believe," as applied to a preference, had
been judicially defined to mean, not mere suspicion, but such knowledge
of the facts as to induce a reasonable belief, or cause for well-grounded
belief, and such definition followed the phrase into the statute.
l[Ed. Note.-For other definitions, see Words and Phrases, First ana
second Series, Reasonable Cause.]
18. Bankruptcy e=440--Suits to set aside preferential transfers held review-
able by appeal.
In a suit by a trustee in bankruptcy to set aside a mortgage and a cash
payment as preferential, where the matters involved took such shape that
it was necessary for the Circuit Court of Appeals to pass upon the facts,
the decree was reliewable by appeal as distinguished from petition to
Appeal from the District Court of the United States for the Eastern
Division of the Southern District of Ohio; John E. Sater, Judge.
Suits by Ed. Slocum, trustee in bankruptcy of John Joy Halliday and
Annie Joy Halliday, against the Delaware National Bank and others.
From the decree the City National Bank, the Delaware National Bank,
and Ruth Halliday and others separately appeal. Reversed, modified
in part, and bill dismissed in part.
Chas. J. Pretzman, of Columbus, Ohio (Harry N. Crist, of Delaware,
Ohio, on the brief), for appellant banks.
Smith W. Bennett, of Columbus, Ohio (Berne Jones, of Delaware,
Ohio, on the brief), for appellants Halliday.
Geo. W. Carpenter, of Columbus, Ohio (Eugene S. Owen, of Dela-
ware, Ohio, on the brief), for appellee.
Before KNAPPEN, DENISON, and DONAHUE, Circuit Judges.
DENISON, Circuit Judge. John Joy Halliday resided upon a
Southern Ohio farm and there carried on an extensive creamery busi-
ness, and had become largely indebted, the Delaware National Bank
being his chief creditor. His mother, Annie Joy Halliday, lived with
him and had indorsed many of his notes. In November, 1916, the
mother and son were severally adjudicated bankrupt, and Mr. Slocum
was made trustee of each estate. He filed a bill in the court below
against the bankrupts, attacking, as a preference, a mortgage covering
the farm, which the mother and the son had given to the bank within
the four months period. In the same bill he set up that the bankrupts'
title to the farm had come from Mr. Halliday's grandfather, Thomas
Joy, and alleged that others of the latter's descendants or next of kin
were claiming title adverse to or supplementary to that of the bank-
rupts, and prayed not only to set aside the preference, but to have
these clouds removed from the title of the bankrupts. He also filed a
separate bill in behalf of the mother's estate against the bank, alleging
that a $10,000 cash payment to it and the giving of a pledge of certain
Q:For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexea
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The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921., legislative document, 1921; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38843/m1/35/: accessed July 25, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.