The Federal Reporter (Volume 224); With Key-Number Annotations (Paperback)

This historic book may have numerous typos, missing text or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1915. Not illustrated. Excerpt: ... to the statutory standards in purity, quality, or fitness for consumption. The decree is reversed, and cause remitted, with instructions to decree in conformity with this opinion. CLERB CLOTHING CO. v. UNION TRUST & SAVINGS BANK. In re PRAGER-SCHLESINGER CO.'S ESTATE (Circuit Court of Appeals, Ninth Circuit July 12, 1915.) No. 2563. Bankruptcy (r)=-308--Claims--Allowance. The C. Corporation, a creditor of the P. Company, effected a compromise with other creditors of the P. Company, subjected to involuntary bankruptcy proceedings, advancing for the purpose money which it borrowed from a bank. The trustee, by order of court, made to C. Corporation a bill of sale of the merchandise, furniture, and fixtures of the P. Company. The C. Corporation took over the property, put them on sale at retail through Its sales agents, and subsequently turned the same over to the P. Company as selling agent, to turn over the proceeds to the bank, to be credited on the indebtedness. The P. Company was reorganized, and of its 500 shares 498 were turned over to the president of the C. Corporation, and 1 share was given to the attorney of the C. Cor poration. Subsequently the C. Corporation purported to sell the merchandise to the P. Company, and took notes therefor. There was no written evidence of the sale. An expert accountant stated that there was not any change in the ownership of the business of the P. Company, and that there were no records of any bills payable in the books that would indicate a sale. Held, that the P. Company from its reorganization was an agent for the C. Corporation, and on the subsequent bankruptcy of the P. Company the C. Corporation could not establish Its claims based on the notes. Ed. Note.--For other cases, see Bankruptcy, Cent Dig. &#167.