533] 34] It is true that the 9th section of the Act pro- | the Treaty of November 17, 1880, and who de In regard to the main question involved, sec- It is also urged that the Treaty itself contem- certificate signed by the collector and attested The remaining question is as to the effect of | Jung Ah Lung having departed from the United States on the 24th of October, 1883, and having then received the certificate of identification under the Act of 1882, his case is to be governed by the provisions of that Act, and not by the provisions of the Act of 1884. The certificate he received contained the matters provided for by the Act of 1882; and not those | provided for by the Act of 1884. The registry books of the custom house contained, in regard to him, the particulars specified in the Act of 1882, and not those specified in the Act of 1884. The provisions of the Act of 1884, in the respects in which they differ from those of the Act of 1882, do not apply to him or to his certificate; and, if he had his certificate to present to the collector, he could not be required to present a certificate containing the additional particulars required by the amendments made by the Act of 1884 to the 4th section of the Act of 1882. The provisions of the Act of 1884, so far as they relate to the contents of the certificate to be issued, and of the certificate to be presented to the collector by the returning Chinese laborer arriving by a vessel, are not retrospective. This principle was determined in the case of Chew Heong v. United States, 112 U. S. 536 [ 28: 770] where it was held that a Chinese laborer, who was residing in the United States at the date of nese laborer to whom the same is issued to return In regard to a suggestion made that a Chi- The judgment of the Circuit Court is affirmed. the United States, by a vessel, at some port other | after the passage of the Act of 1882, was en- Mr. Justice Field, Mr. Justice Lamar, and myself are unable to concur in the interpretation placed by the court upon the Act of May 6, 1882, passed by Congress in execution of the supplemental Treaty with China, concluded on the 17th of November, 1880. By that Treaty the United States were at liberty, notwithstanding the stipulations of the [636] original Treaty, to enact laws regulating, limiting, or suspending the coming of Chinese laborers to, or their residence in, the United States; such limitation or suspension to be reasonable in its character. It further provided that "Chinese subjects, whether proceeding to the United States as teachers, students, merchants, or from curiosity, together with their body and household servants, and Chinese laborers who are now [November 17, 1880 ] in the United States, shall be allowed to go and come of their own free will and accord, and shall be accorded all the rights, privileges, immunities, and exemptions which are accorded to the citizens and subjects of the most favored Nation." The first section of the Act of May 6, 1882, suspends the coming of Chinese laborers to the United States from and after the expiration of ninety days next after that date, and until the expiration of ten years next after the passage of the Act; and makes it unlawful for any Chinese laborer to come, or, having so come after the expiration of said ninety days, to remain in this country. The second section makes it an offense, punishable by fine and imprisonment, for any master of a vessel to knowingly bring any Chinese laborer within the United States on such vessel from any foreign port or place. The third section exempts from the operation of the preceding sections only such Chinese laborers as were in this country on the 17th of November, 1880, or who shall have come into the same before the expiration of ninety days next after May 6, 1882,“ and who shall produce to such master before going on board such vessel, and shall produce to the collector of the port in the United States, at which such vessel shall arrive, the evidence hereinafter ir this Act required of his being one of the laborers in this section mentioned. The fourth section provides for registry books, to be kept by the collector of customs, in which shall be entered a list of all Chinese laborers departing on any vessel from his district, in which shall be stated the name, age, occupation, last place of residence, physical marks or peculiarities, and all facts necessary for the identification of such laborers. Each Chinese laborer, so departing from the country, The fifth section made provision for a similar certificate to a Chinese laborer of the class mentioned in the fourth section, and who desired to depart from this country "by land," to be given by the collector of customs of the district next adjoining the foreign country to which such laborer desires to go. Thetwelfth section provides that "No Chinese person shall be permitted to enter the United States by land, without producing to the proper officer of customs the certificate in this Act required of Chinese persons seeking to land from à vessel," etc. In view of these provisions we have been unable to reach any other conclusion than that Congress intended, by the Act of 1882, to prohibit the return to this country of any Chinese laborer who was here on the 17th of November, 1880, and who thereafter left the United States, taking with him the certificate prescribed by that Act, unless he produced such certificate at the time he sought to re-enter. It is not disputed that such was the intention of Congress with respect to Chinese persons seeking to enter the United States "by land." Indeed, dispute upon that point is precluded by the express prohibition, in the twelfth section, upon all Chinese persons being permitted to enter this country by land "without producing to the proper officer of customs the certificate in this Act required." But is there any ground to suppose that Congress intended to prescribe a different or a more stringent rule in relation to Chinese laborers entering by land than that prescribed in relation to Chinese laborers entering at one of the ports of the country? If it be said that the registry books kept at the port of departure furnish ample evidence for the identification of Chinese laborers, seeking to enter the country at that port, we answer: (1) that Congress saw fit to exclude from the country all Chinese laborers of the class to which appellee belongs, unless they produced to the [637] [631 639] collector the certificate issued as evidence of United States, "* upon producing and deliver ing" his certificate "to the collector of customs OCTOBER TERM, 1879. " 1. An execution sale of a father's roal estate to his son on a judgment by confession upon a note made by the father to the son, held fraudulent and void as against bona fide creditors of the father, it appearing from the facts that consideration for such note was fictitious. 2. Held also, that a subsequent purchase of the same property by the son at a delinquent tax sale amounted, in legal effect, to nothing more than payment of the taxes, and was void as being a part of the scheme to delay creditors. [No. 943, October Term, 1879.] Submitted Jan. 21,1880. Decided March 2,1880. APPEAL from the Circuit Court of the United States for the Eastern District of Arkansas. Affirmed. In 1860, William W. Woodfolk, a citizen of and residing in the State of Tennessee, executed certain promissory notes to James A. Seddon, a citizen of Virginia, for an existing indebtedness. Seddon brought suit on these notes in Tennessee in 1868, and recovered judgment thereon against William W. Woodfolk on March 11, 1873; and in May, 1876, sued on this judgment, in Arkansas, by attach. ment, and levied on the lands mentioned in the present suit as the property of said William W. Woodfolk, and recovered judgment for $99,628 96 on October 25, 1876, which judgment was declared a lien on the hands attached. In the mean time, in April, 1866, William W Woodfolk confessed judgment in Arkansas on his note in favor of his son, William Woodfolk, for $39,425.06, dated Jan. 1, 1886, and due one day after date; and the lands in suit were levied on and sold under execution on such judgment in October, 1866, and bought by William Woodfolk, who received the sheriff's deed therefor In June, 1866, these lands were sold by the tax collector for the tax of 1865, and bought by William Woodfolk, who received a tax deed in December, 1867. These deeds were recorded. In November, 1876, Seddon brought this suit against William Woodfolk and William W. Woodfolk, and James Brown, tenant of the premises, setting up his judgment as a lien on the lands, and that the confession of judgment to William Woodfolk and the sale thereunder, and the tax sale, were fraudulent devices, contrived to hinder, delay and defraud the creditors of William W. Woodfolk, and praying that such judgment and deeds might be declared fraudulent and void, and that the lands might be subjected to bis (Seddon's) judgment. The defendants Woodfolk denied any intent to defraud creditors of William W. Woodfolk, and asserted that the note from him to William Woodfolk was given in good faith, and that the consideration for it was an actual indebtedness due from the father to the son, being made up of the following items: 1, gift of $5,500 from the grandfather of the son, to the latter, in 1855, which had been placed in the father's care; 2, wages at the rate of $1,500 per year from January 1, 1859, to May 12, 1863, for services rendered by the son to the *WILLIAM WOODFOLK ET AL., Appts., father in performance of the following agree v. JAMES A. SEDDON. 154 US 658 Attempt to delay creditors-execution sale on ment, executed by them on May 12, 1863: "Whereas, William Woodfolk is ordered south of the federal lines by military authority, and whereas I, William W. Woodfolk, have on my farm in Jackson County about sixty negroes and a large stock of every description, together with some blooded stock in Kentucky, at Mr. A. H. Garland, for appellee: In the absence of express contract, the law will not imply a promise to pay for services rendered by a son living with his father. Bump, Fraud. Conv. 229. Under the well settled rule no evidence was needed on the part of complainant, but upon bill and answer he was entitled to a decree. Marshall v. Green, 24 Ark. 410. The intention of the parties to defraud creditors must be determined from their acts. Alexander, and whereas, there is great danger of the negroes running away and all the stock being stolen, I have agreed to give to my son, William Woodfolk, all of my stock of every description in Jackson County, and at Alexander, and all the surplus produce on the farm, if he can get to Jackson County and will take care of my negroes, and keep them on the place and, if possible, from running away or being taken away. And whereas I, W. W. Woodfolk, employed my son, William Woodfolk, at a salary of fifteen hundred dollars a year, to Dick v. Grissom, 1 Freem. Ch. 437; Hend assist me in my business, and he has been in ricks v. Robinson, 2 Johns Ch. 300; Robinson my employ since the first day of January, 1859, v. Stewart, 10 N. Y. 189; Clinton v. Estes, 20 up to the 12th day of May, 1863, it is now Ark. 245; Hempstead v. Johnston, 18 Ark. 141; agreed between us that he is not to have any Galbreath v. Cook, 30 Ark. 421; Blair v. Alston, salary so long as he remains south of the fed- 26 Ark. 41; Humes v. Scruggs, 94 U. S. 28 (24: eral lines." 3. The value of the property to 53); Bump, Fraud. Conv. 560-562, 565, 574, which the son became entitled under said agree-581-587; Rea v. Missouri, 84 U. S. 17 Wall. ment, but which had been disposed of by his father and not accounted for; 4, money loaned and advanced by the son to the father. These various items were claimed to more than equal the amount of the note given by the father to the son. The court below rendered a decree declaring the judgment confessed by defendant William W. Woodfolk, in favor of defendant William Woodfolk, and the execution sale thereon, and the subsequent tax sale, and subjecting the land covered thereby to the satisfaction of complainant's judgment, fraudulent and void as against the complainant creditor. Thereupon defendants appealed to this court. 543 (21:709). The relationship of the parties is to be considered. Bump, Fraud. Conv. 31-59; Freem. Executions, 136. If the transaction assume the form of a public sale, it is merely apparent, not real. There is in such case no distinction between a conveyance directly from the debtor and one from the sheriff or other public officer. In reality the conveyance is from the debtor through the sheriff or other public officer. Bump, Fraud. Conv. 254-256; Booth v. Bunce, 33 N. Y. 156; Freem. Executions, 136, 140; Gantt's Dig. § 2954. While in law such transfers are, as to creditors, mere nullities, yet, as between the parties to them, they are good, and will only be set aside at the suit of creditors. Payne v. Bruton, 10 Ark. 58-60; Bump, Fraud. Conv. 436, 437, 451-453, 465-469, 482, 534. Mr. T. D. W. Yonley, for appellants: Complainant insists that this is not a real action, or in any sense an action for the recovery of real estate, but an action to subject it to the payment of a debt; and that the entry upon and possession of the land in controversy by William Woodfolk had nothing to do with As to creditors, the title is still in the grantor starting the statute to running against the com- for the purpose of paying his debts, and the plainant's right to subject the land to the pay-grantee holds the property as trustee for the ment of his debt, and that no Statute of Limit- benefit of the creditors. ations could begin to run against the complainant's right to do this, until he had recovered a judgment at law against William W. Woodfolk. That there are authorities to this effect is not denied, but there are others, of equal weight, which support an opposite view. The Statute of Limitations will run in favor of a trustee in possession of real estate under a constructive or resulting trust, from the time he claims the trust property as his own. Gebhard v. Sattler, 40 Iowa, 152; Governor v. Woodworth, 63 Ill. 254; Haynes v. Swann, 6 Heisk. 560. In an action by a purchaser, under a judgment, execution and sheriff's sale, against a defendant in possession, under a deed from the judgment debtor, alleged to be fraudulent as against creditors, the Statute of Limitations begins to run from the date of the possession under the fraudulent deed. Walker v. Bacon, 32 Mo. 144; Prewett v. Buckingham, 28 Miss. 92; McLure v. Ashby, 7 Rich. Eq. 430; Cox v. Cox, 6 Rich. Eq. 275; Lott v. DeGraffenreid, 10 Rich. Eq. 348; Shannon v. White, 6 Rich. Eq. 102; Bank v. Ballard, 12 Rich. L. 259; Eigleberger v. Kibler, 1 Hill, Ch. 120: Brewer v. Kelly, 24 La. Ann. 246; Powell v. O'Neil, Id. 522. Miller v. Fraley, 21 Ark. 84; Thomason v. Neeley, 50 Miss. 310; Shaw v. Millsaps, Id. 380 Metropolitan Bank v. Durant, 22 N. J. Eq. 35. And creditors obtaining judgments against the grantor acquire liens on the lands fraudulently transferred. Ringgold v. Waggoner, 14 Ark. 73; Bump, Fraud. Conv. 465, 466. A creditor must establish his demand at law and obtain a lien upon the property before the fraudulent transfer interferes with his rights,or he has any title or right to claim relief in equity. Clark v. Anthony, 31 Ark. 546; Meux v. Anthony, 11 Ark. 418-421; Sale v. McLean, 29 Ark. 621; Terry v. Tubman, 92 U. S. 161 (23: 539); Terry v. Anderson, 95 U. S. 636 (24:367); Dodge v. Griswold,8 N. H. 425; Bump, Fraud. Conv. 515-517, 521-525; Payne v. Sheldon, 63 Barb. 169. A court of equity has jurisdiction before or after sale under a judgment to set aside a transfer in fraud of creditors; before sale, to present an unincumbered title for sale, and after sale to remove clouds from title. But the better practice is to remove incumbrances before sale. Sale v. McLean, 29 Ark. 621; Gallman v. Perrie, 47 Miss. 131; Pulliam v. Taylor, 50 Miss. 551. The Statutes of Limitations of seven, five and two years, as fixed by sections 4113, 4116, and 4117 of Gantt's Digest, and interposed by William Woodfolk, by the terms of the statutes themselves, only apply in suits for the recovery or possession of lands, and do not apply to suits of this kind. Gantt's Dig. 745; Chaplin v. Holmes, 27 Ark. 416; Wright v. Walker, 30 Ark. 49; Phelps v. Jackson, 31 Ark. 275. At law the statute will not run until right of entry or the right of action has accrued; so neither will it run in equity. The Statutes of Limitation apply with equal force in courts of law and courts of equity in cases of concurrent jurisdiction, courts of equity acting in obedience rather than in analogy to the statutes. Story, Eq. § 1520; Adams v. Taylor, 14 Ark. 67; Wilson v. Anthony, 19 Ark. 16; Hancock v. Harper, 6 C. & J. 158; Knox v. Gye, 4 Moak, Eng. Rep. 44. A court of equity applies the rule of laches according to its own ideas of right and justice, every case being governed chiefly by its own circumstances, not refusing relief when the application is sustained by conscience, good faith, and reasonable diligence. Story, Eq. § 1520; Sullivan v. Portland & K. R. R. Co. 94 U. S. 811, 812 (24:326); Wilson v. Anthony, 19 Ark. 16; Brown v. Buena Vista County, 95 U. S. 160, 161 (24:423); Bump, Fraud. Conv. 547. While courts of equity act in obedience and in analogy to the Statutes of Limitations in 600 proper cases, they will interfere in many cases to prevent the bar of the statute where it would be inequitable or unjust, and will not permit the bar to be interposed against conscience. Story, Eq. 1521; Henry County v. Winnebago Swamp Drainage Co. 52 Ill. 299. Mr. Chief Justice Waite delivered the opinion of the court: After a careful consideration of this case, we are entirely satisfied that the consideration of the note executed by William W. Woodfolk to his son, William Woodfolk, on which alone the title of the son to the property in controver sy depends, was fictitious, and that the confession of judgment by the father in favor of the son, and the purchase of the property in controversy by the son under execution, were but parts of a scheme devised by the father and son through which it was hoped something might be saved from the wreck of the father's fortune at the expense of his bona fide creditors. There is no dispute about the law applicable to these facts, and as it will serve no useful purpose to discuss the evidence in detail a further opinion on this point will not be delivered. The purchase of the property at tax sale by the son was, as we think, under the circumstances, nothing more in legal effect than payment of the taxes, so far as the rights of this appellant are concerned. We cannot devest ourselves of the conviction that it was part and parcel of the scheme devised to hinder and delay creditors in the collection of their debts. Decree affirmed. 124 U.S. END OF VOL. 124. |