In re C. Moench & Sons Co.

Citations

• 130 F. 685
• 66 C.C.A. 37
• 1904 U.S. App. LEXIS 4202

Syllabus

<p>1. Bankruptcy — Jurisdiction op Court to Make Adjudication — Possession op Property by Receivers.</p> <p>The fact that the property of a corporation is in the possession of receivers appointed by a state court does not affect the jurisdiction of a court of bankruptcy to adjudicate such corporation a bankrupt.</p> <p>2. Same — Manufacturing Corporation — Effect op Receivership bepore Piling op Petition.</p> <p>The appointment of receivers for a manufacturing company, and its ceasing to do business in consequence, before the filing of a petition in bankruptcy against it, do not deprive the court of jurisdiction to make the adjudication against it as a corporation engaged principally in manufacturing pursuits.</p> <p>3. Same — Defense of Solvency.</p> <p>In involuntary proceedings in bankruptcy against a manufacturing corporation under Bankr. Act 1898, § 3a, cl. 5, 30 Stat. 546 [U. S. Comp. St. 1901, p. 3422], based on its admission in writing of its inability to pay its debts, and its willingness to be adjudged a bankrupt on that ground, a creditor cannot prove its solvency as a defense.</p> <p>4 Same — Act of Bankruptcy — Power op Directors to Commit.</p> <p>Where, under the laws of the state, a corporation has power to make a general assignment of its property for the benefit of creditors, in the absence of a statute or by-law regulating the subject such assignment may be made by the board of directors, and, having such power, they may also make the admission in writing of the inability of the corporation to pay its debts, and of its willingness to be adjudged a bankrupt on that ground, which constitutes an act of bankruptcy under Bankr. Act 1898, § 3a, cl. 3, 30 Stat. 546 [U. S. Comp. St. 1901, § 3422], and such admission may be made the basis of a petition against it by its bona fide creditors.</p> <p>5. Same.</p> <p>The appointment of temporary receivers for a corporation does not deprive the directors of the power to make a written admission of its inability