United Surety Co. v. Iowa Mfg. Co.

Citations

• 179 F. 55
• 102 C.C.A. 623
• 1910 U.S. App. LEXIS 4607

Syllabus

<p>1. Bankruptcy (§ 72*) — Corporations Subject to Act — Nature of Business —“Manufacturing, Trading, or Mercantile Pursuits.”</p> <p>A corporation whose business as actually conducted consists of installing heat and power plants, constructing conduits, waterworks, and sewers, buying, selling, and erecting steam engines, and occasionally making reports with reference to the proposed construction of electric light and power plants is engaged principally in “manufacturing, trading, or mercantile pursuits,” within Bankr. Act July 1, 1898, c. 541, § 4b, 30 Stat. 547 (U. S. C-omp. St. 1901, p. 3423), as -amended by Act Feb. 5, 1903, c. 487, i 3, 32 Stat. 797 (U. S. Comp. St. Supp. 1909, p. 1309), and may be adjudged an involuntary bankrupt.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Dec. Dig. § 72.*</p> <p>What persons are subject to bankruptcy law, see note to Mattoon Nat. Bank v. First Nat. Bank, 42 O. C. A. 4.]</p> <p>2. Bankruptcy (§ 58*) — “Creditors”—“Act of Bankruptcy” — Giving Preference to Surety.</p> <p>A surety on the bond of a contractor for government work, who under the federal statute is directly liable to laborers to whom the contractor is indebted for labor performed under the contract, is a creditor of the contractor to the extent of such liability, within the meaning of Bankr. Act July 1, 1898, c. 541, 30 Stat 544 (U. S. Comp. St. 1901, p. 3418), -and the lending of money by the surety to the contractor to pay such claims, and the taking of security therefor, at a time when the contractor was insolvent and within four mouths prior to its bankruptcy, was the giving of a preference to a creditor and constituted an act of bankruptcy under section 3a (2) of the act.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Dec. Dig. § 58.*</p> <p>For other definitions, see Words and Phrases, vol. 2, pp. 1713-1727; vol. 8, pp. 7622, 7623; vol. 1, p. 118; vol. 8, p. 7562.]</p> <p>3. Bankruptcy (§ 58*) — Acts of Bankruptcy — Giving Preference to Creditor