In re GREEN et al.

In re GREEN et al. (District Court, E. D. Pennsylvania. January 26, 1901.) No. 845. Bankruptcy — -Acts ov Bankruptcy' — Constructive General Assignment. A confession of judgment by a debtor to a trustee for all his creditors amounts to a general assignment for the benefit of creditors, under the law of Pennsylvania, and constitutes an act. of bankruptcy, under Bankr. Act 1898, § 3a, cl. 4. In Bankruptcy. On motion for adjudication. Jos. L. Greenwald and Clinton O. Mayer, for creditors. Henry Williams, for bankrupt. [MAJORITY — J. B. McPHEBSON, District Judge.] J. B. McPHEBSON, District Judge. From the petition and answer, it appears that on December 5, 1900, the bankrupts confessed judgment for the sum of $9,248.70 to Philip Silverman as trustee for all their creditors, and that this judgment was entered of record upon December 7th, and an execution issued thereon; the judgment and execution becoming a lien upon all their property. Objection is made to the adjudication upon the ground that the confession of judgment was not a preference, because it was intended to benefit all the creditors alike, in proportion to the respective amounts of their claims. It-may be true that the confession was not a preference; but under the law of Pennsylvania it clearly amounted to a general assignment for the benefit of creditors, and was therefore an act of bankruptcy. The adjudication will be entered as" prayed. .