Edward Douglass White

“ The petition alleged the adjudication in bankruptcy and the appointment of the trustee, and based his right to recover upon the ground that on April 10, 1900, the firm had transferred and assigned to the defendant bank, who had received the same, the sum of money sued for, which it was alleged was the property of Reinhard & Company, and, in substance, the payment to the bank was alleged to constitute a voidable preference. ”

“ The result, however, of the proof would not be different, even if it be conceded that, under the rule as to clearings, which we have quoted, the clearing house would have had the power, upon the default of one of its members, simply to call upon the other members to pay in a pro rata proportion of the amount of the check or checks which had been drawn upon the defaulting member, and to treat the credit standing in the clearing in favor of the defaulting member as belonging proportionately to the contributing members. ”

“ The answer admitted the making of the general assignment, the adjudication of the firm as an involuntary bankrupt, and the appointment and qualification of the plaintiff as trustee. The other averments of the petition were denied.
A trial was had to a jury. At the close of the evidence for the plaintiff the court, at the request of the defendant, instructed a verdict in its favor, and judgment was entered dismissing the action. The circuit court of Franklin county affirmed the judgment, which was thereafter affirmed by the supreme court of Ohio, without opinion. ”

“ But even if the Federal question was referred to in the petition, as the cause of action stated in nowise involved the construction or validity of any provision of the bankrupt act, therefore there is no right to review under § 709 of the Revised Statutes, U.S.C.omp. Stat. ”