In re A. Gaglione & Son

• Decision Date: 11 October 1912
• Docket Number: 2,152.
• Parties: In re A. GAGLIONE & SON.
• Court: U.S. District Court — Middle District of Pennsylvania

200 F. 81

In re A. GAGLIONE & SON.

No. 2,152.

United States District Court, M.D. Pennsylvania.

October 11, 1912

M. C Rhone and A. R. Jackson, both of Williamsport, Pa., for trustee.

T. M B. Hicks and Wister M. Elliot, both of Williamsport, Pa., for claimant.

WITMER District Judge.

The petitioner, P. M. Walton, asks the court to order and direct the trustee to deliver to him certain machinery delivered by him to the bankrupt on two certain agreements in writing. The referee decided that the petitioner was entitled to the property on the ground that the contracts between the parties constituted a bailment, and directed the return of it. The writing, dated August 9, 1911, is as follows:

'August 9, 1911.

'Agreement made and entered into by and between P. M. Walton, of 1019 to 1029 Germantown avenue, city of Philadelphia, state of Pennsylvania, of the first part, and A. Gaglione and Son of 115 East Third street, city of Williamsport and state of Pennsylvania, of the second part, witnesseth:

'That the said party of the first part, agrees to rent to the said party of the second part one (1) style D 10" cutting press, secondhand, one (1) 5' kneader with plow, one #2 mixer with top bracket. All to be set up . . . street, city of Williamsport, state of Pennsylvania. The above is valued at $1,300.00.

'The term of the lease to be eleven months from the first day of August. The rental shall be the sum of thirteen hundred dollars to be paid as follows: Four hundred dollars and no cents, in advance, and seventy-five dollars and no cents on the first day of each of said eleven months, constituting the term of the lease, at the office of said P. M. Walton, 1019 to 1029 Germantown avenue.

'And the party of the second part agrees to pay said several sums promptly on the days herein fixed for the payment of same, and further agrees not to move said machinery from their present place of business, situated at 115 East Third street, city of Williamsport, state of Pennsylvania, without the consent in writing of the party of the first part.

'It is distinctly understood and agreed between the parties hereto, that this is a contract of renting, and not a sale conditional or otherwise, and the whole of the contract between the parties is expressed in this instrument, and it is further understood and agreed that the said party of the second part is to be the agent of the party of the first part, in holding and keeping possession of said machinery herein rented, and that it is to be well preserved and carefully used by said party of the second part, and delivered up to the said party of the first part on demand.

'But the said party of the first part agrees not to demand a return of said property so long as it is properly used and kept at the place agreed upon and so long as the rent shall be faithfully and promptly paid according to the terms and spirit of this contract.

'At the expiration of the time for which the said machinery herein described is rented, the party of the second part shall return and deliver the same to the party of the first part in good order, save reasonable wear and tear.

'If the said party of the second part shall faithfully keep and perform this agreement and make all the payments herein stipulated when due, then and not otherwise, the said party of the second part, may at their option purchase the said machinery herein rented within thirty days from the expiration of the time for which the same is rented, and not afterwards, by paying the said party of the first part seventy-five dollars and no cents purchase money.

'And should the lessee desire to purchase (the machinery herein named) at any time before the expiration of lease, a discount of six per cent. (6%) will be allowed on purchase money and rents yet due.

'And upon payment of the purchase money the party of the first part shall sell and deliver said machinery by a good and sufficient bill of sale to the said party of the second part.

'Nothing in this agreement contained and no payment of money pursuant hereto, except the payment of the purchase money as above provided, shall in anywise vest, or be understood or construed to vest in the said party of the second part, any title, legal or equitable, to said machinery, for any term whatsoever, or shall prevent or hinder the said party of the first part, from reclaiming possession of said machinery, whenever said party of the second part fail to pay rent above stipulated, or shall in any other respect violate any of the conditions or covenants herein contained.

'In witness whereof, the parties hereto, have hereunto subscribed

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