In re Manning

• Decision Date: 01 February 1902
• Docket Number: 1,029.
• Citation: 112 F. 948
• Parties: In re MANNING.
• Court: U.S. District Court — Eastern District of Pennsylvania

112 F. 948

In re MANNING.

No. 1,029.

United States District Court, E.D. Pennsylvania.

February 1, 1902

D. C Henning, for bankrupt.

A. W Schalck, for creditor.

J. B McPHERSON, District Judge.

The question for decision grows out of the allowance of the debtor's exemption to the bankrupt. She claimed the exemption in the following notice to the trustee:

'I hereby notify and request you to set apart for me and my use goods and chattels and moneys realized from my estate to the amount of 300 dollars as my exemption fund, as provided by law, and I hereby state that I will take and accept household goods appraised at $62.00, book accounts, $35.00, and goods or money. The money will be accepted, if more convenient to you. Of all of which please take notice.

'Ellen Manning, Bankrupt. 'D. C. Henning, Her Attorney.

'As to balance of $203.00, bankrupt accepts pro rata portion, if sold under appraised value; but, if proceeds equal or exceed appraised value, then the whole balance to be paid to her in cash. This to enable to make unbroken sale.

'Ellen Manning, by Her Attorney, D. C. Henning.

'Approved: C. E. Berger, Referee.

'George Bland, Trustee.'

Subsequent to this notice, the trustee made the following report to the referee:

'Pursuant to section 47 of the national bankrupt act, I, George Bland, trustee of the above-named bankrupt, do herewith set apart the bankrupt's (Ellen Manning) exemption, as allowed under the laws of the state of Pennsylvania and bankrupt act, and report the estimated value thereof to the court as follows:

Household furniture . . . . . . . . . . . . . . . . .	$ 62
Book accounts . . . . . . . . . . . . . . . . . . . . .	35
Cash . . . . . . . . . . . . . . . . . . . . . . . .	203
Total . . . . . . . . . . . . . . . . . . . . . . . .	$300'

After the sale of the remaining personal property, the trustee set apart $203 in cash for the bankrupt in payment of the balance of the exemption, and when his account was filed asked credit for the following items:

Household goods of bankrupt . . . . . . . . . . . . .	$ 62
Book accounts . . . . . . . . . . . . . . . . . . . . .	35
Cash set apart . . . . . . . . . . . . . . . . . . .	203

The allowance of this credit was objected to, and, having been granted by the referee, presents the point to be determined.

It is clear that, while the bankrupt act recognizes the right of the bankrupt to exemption, it refers to the laws of the state as the source from which the right to exemption arises. Manifestly, therefore, what the law of the state does not give cannot be set aside by the trustee, and it is necessary to turn to the law of Pennsylvania in order to test the correctness of the trustee's action. Tried by the state law, I think it is plain that the attempt of the trustee to set aside household goods and book accounts in a lump...