Ryttenberg v. Schefer

Citations

• 131 F. 313
• 1904 U.S. Dist. LEXIS 196

Syllabus

<p>1. Usury — Commissions fob Use of Credit.</p> <p>A commission charged by one commission house to another for the use of its credit under an arrangement by which it guarantied all consignments sent to the second house did not constitute usury.</p> <p>2. Bankruptcy — Preference.</p> <p>A bankrupt cannot be held to have given a preference, recoverable by his trustee, because of sums collected by a creditor after the bankruptcy from third persons under a contract which had been in force between the bankrupt and the creditor for a number of years.</p> <p>3. Contract — Validity.</p> <p>A contract by which a bankrupt commission firm, some years before its bankruptcy, agreed to do all its business through another firm, obtaining the benefit of the latter’s credit, held not invalid, as a scheme to hinder, delay, or defraud its creditors.</p> <p>4. Bankruptcy — Jurisdiction of Courts — Suit by Trustee.</p> <p>A court of bankruptcy has jurisdiction by consent of a suit by a trustee to recover a fund for the estate, under Bankr. Act July 1, 1898, c. 541, § 23, 30 Stat. 552 [U. S. Comp. St. 1901, p. 3431], where the defendant appears generally and answers to the merits.</p> <p>5. Factors — Lien—Effect of Contract between Commission Houses.</p> <p>A commission firm some years before its bankruptcy entered into a contract by which it agreed to do all its business through defendants, composing a second firm, to whom all goods should be consigned, and in whose name all sales and collections were to be made. Defendants were to make advances on consignments, and be responsible therefor. A lease for iiremises occupied by the bankrupt was assigned to defendants, but the rent therefor was to be paid by the bankrupt, which was to continue to occupy them and carry on the business therein at its own expense. At the time of the bankruptcy there were goods on the premises or in warehouse in the bankrupt’s name, some of which had been consigned in defendants’ name, and some purchased by the