Pitts Agricultural Works v. Smelser

Roberts, J., delivered the opinion of the Court. This appeal involves the validity of an assignment by the Maryland Agricultural Company of Baltimore City to David P. Smelser, for the benefit of its creditors, and is similar to the case which will be found reported in this volume on page 464. The appellant being one of the creditors of the Agricultural Company instituted proceedings in the Superior Court of Baltimore City by way of attachment on original process against the appellee, upon the ground that said assignment, whilst valid on its face, was made with intent to defraud its creditors. The writ of attachment was laid in the hands of the appellee.

The short note case was first tried, and resulted in a verdict and judgment for the appellant. The attachment was then tried and after the testimony on both sides had been closed, the appellant offered ⁴⁹⁵ two prayers which were rejected, and the prayer of the appellee was granted. The appellee’s prayer is in effect a demurrer to the evidence offered and is the converse of the appellant’s prayers. The record contains one exception, which is to the refusal of the Court to allow to be answered the question, “ Was Stouffer a salaried officer?” This inquiry was addressed to the witness Rhoads, who promptly answered that he was.

The question and answer were both objected to, and objection sustained, and we think properly. It has no relevancy to the issue, and is too remote and speculative, and has no connection whatever with the execution of the deed of assignment. .It is not contended by the appellant that the Maryland Agricultural Company was not justified by the then existing circumstances in making an assignment, or that the assignment made by it, is not fair and valid on its face ; but it is contended that the assignment though fair and valid on its face, yet is in fact a device or contrivance to compel the •creditors of the company to accept a compromise, and was made in pursuance of an agreement or understanding with the appellee, by which the company was to derive some advantage or benefit inconsistent with the legal rights and remedies of its creditors. It is conceded that the deed of assignment was not executed to the appellee until the company found itself in a position of inability to meet its obligations, when a deed was executed by it for the benefit of all its creditors without any preference or priority. The property of the corporation consisted of a large stock of implements and book accounts.

On the day of the execution •of said deed, the appellee filed his bond with approved security, took possession of the property of the company, and ■thereafter applied by petition to the Circuit Court No. 2, ■of Baltimore City, to assume jurisdiction of the trust, and •obtained the usual orders from said Court and proceeded with the due execution of his trust The allegations of the .attachment were, ist, that the company had assigned, disposed and concealed its property to defraud its creditors ; ⁴⁹⁶ and 2nd, that said company had fraudulently contracted the debt, or incurred the obligation, respecting which this action is brought. The existence of one or both of these conditions is essential to the validity of this attachment. It will not be necessary to again refer to the second allegation. There is not the slightest testimony in the record which, directly or indirectly, tends to sustain this charge or alludes to its subject-matter.

Nor do we find in the record any evidence which we consider legally sufficient to