In re Cameron Town Mut. Fire, Lightning & Windstorm Ins. Co.

• Decision Date: 12 June 1899
• Citation: 96 F. 756
• Court: U.S. District Court — Western District of Missouri
• Parties: In re CAMERON TOWN MUT. FIRE LIGHTNING & WINDSTORM INS. CO.

96 F. 756

In re CAMERON TOWN MUT. FIRE LIGHTNING & WINDSTORM INS. CO.

United States District Court, W.D. Missouri, Western Division.

June 12, 1899

New &amp Krauthoff, for petitioning creditors.

PHILIPS District Judge.

This is a proceeding in involuntary bankruptcy. Various creditors of the alleged debtor have filed a petition to have said company declared a bankrupt. The petition alleges that said company 'is a corporation engaged principally in mercantile pursuits,' and alleges, as the ground of the proceeding that said company committed an act of bankruptcy, in that it made an assignment for the benefit of its creditors to one C H. Coppinger. The company appeared and filed answer, alleging that its principal place of business is in Kansas City, Mo. It admits that it did make a general assignment for the benefit of all creditors to said Coppinger, in due form filed in the circuit court of Jackson county, Mo., and that said assignee had qualified and taken charge of said property, and is proceeding to administer the same under the state statute. It denies that it was or is a corporation engaged principally in mercantile pursuits; and further pleads that it is a corporation organized and incorporated under an act of the general assembly of the state of Missouri approved March 21, 1895, found in the Session Acts of the State of Missouri for 1895 (page 200); that under and by virtue of said act it was incorporated for the sole purpose of mutually insuring the property of its members, and for the purpose of paying any losses incurred by any member, by assessments, as provided by its constitution and by-laws, and for no other purpose whatever; and denies its liability to be declared a bankrupt under the bankruptcy act. No jury having been demanded by the defendant, by consent of both parties the question of law involved is submitted to the court for its determination without first referring the case to the referee.

Without presenting any evidence, it is admitted before the court by both parties that the deed of assignment was made by said company to said Coppinger within four months next preceding the filing of the petition herein, and that the defendant is a corporation organized under said act of the legislature of the state of Missouri, and was doing only such business as was authorized by said act. The sole question, therefore, for the determination of the court, is whether or not such corporation is amenable to the bankruptcy law. Bankruptcy Act, Sec. 4b, provides that 'any corporation engaged principally in manufacturing, trading,...