Little Rock Daily Republican

CINCINNATI.

J. C. Fremont as a Bankrupt—Grand
Lodge Knights of Pythias.

CINCINNATI, March 15.—In the United
States court to-day the firm of S. W.
Morton & Co., composed of S. W. Morton
and John C. Fremont, was declared
bankrupt as a firm. This firm had
contracted, in 1870, to excavate a railroad
tunnel under Walnut Hill. S. W.
Morton resided here and managed the
business. General Fremont remained
in New York state. Wagons, horses
and tools for the work were purchased
and debts contracted to the amount of
$10,000 or $12,000. After a time the
property was sold by Morton, and Pat
McKeown, a creditor of the firm was
paid $3,500. Last October J. T. Williamson,
whom the firm owed $600 for
lumber, filed a petition in the United
States court to have the firm declared
bankrupt. The ground of the petition
was that the firm suspended payment
fourteen days, and that Morton had
absented himself to avoid legal process.
Gen. Ward, representative of Gen.
Fremont, demurred to the petition,
raising the question of the liability of
one partner for the acts of another in
his absence. The court held that all
members of the firm were bound by a
note given by the business manager of
the firm, and that as brokers and traders,
the non-payment of fourteen days
was an act of bankruptcy, so he over-
ruled the demurrer. The counsel for
the firm and each of the partners filed
an answer denying all the allegations
of the petition as acts of bankruptcy.
The trial came up on the 10th inst.,
and the case was argued two days, and
to-night went to the jury. A verdict
has been returned for John T. Williamson,
the petitioning creditor. During
the trial John C. Fremont offered to
pay the claim of the petitioning creditor
and compromise the case. Col.
Williamson refused this offer, unless
Gen. Fremont would pay all other creditors
affected by the transaction in
question. The compromise was not
made. Other claimants against the
firm had combined with Williamson to
pay expenses of trial. Counsel for
Gen. Fremont refused to compromise,
because they denied the justice of the
other claims. Gen. Ward, for the defendants,
moved for a new trial this
evening. It is stated by counsel that if
this motion is overruled the case will
be taken up on error.