In re Marley-Morse Co., 2871.

CourtUnited States Courts of Appeals. United States Court of Appeals (7th Circuit)
Citation275 F. 832
Decision Date26 April 1921
PartiesIn re MARLEY-MORSE CO. v. KANTER et al. WILSON
Docket Number2871.

275 F. 832

In re MARLEY-MORSE CO.

WILSON
v.
KANTER et al.

No. 2871.

United States Court of Appeals, Seventh Circuit.

April 26, 1921


[275 F. 833]

Lloyd C. Whitman, of Chicago, Ill., for appellant.

Henry S. Blum, of Chicago, Ill., for appellees.

Before BAKER, ALSCHULER, and EVANS, Circuit Judges.

ALSCHULER, Circuit Judge.

The controversy is over the allowance to appellees of a general claim against the bankrupt estate for $1,408.18; the asserted impropriety of its allowance being predicated on the contention of unlawful preferential payments to appellees. Upon this issue the referee, after hearing the evidence, found that sufficient proof did not appear to warrant the conclusion that bankrupt was insolvent at the time of the payments. But apart from this issue the record discloses facts which unquestionably justified the allowance of appellees' claim.

Bankrupt was in the mail order grocery business. In 1917 it extensively advertised to sell sugar at considerably lower than current prices, as part of a combination order comprising also other goods. Many orders were received, but in November, 1917, the federal authorities controlling the distribution of sugar ordered discontinuance of such advertising and sales. The business immediately dropped off, although for a time orders with cash were received, which bankrupt could not then fill. In February its 10 largest creditors, with aggregate claims of about $14,000, of which appellee held $764, entered into agreement with bankrupt for a three months' extension of their claims, and the appointment of a creditors' committee of three, of which a member of appellees' firm was one, who were to exercise a general supervision over the business, and to whom reports were to be made, and it was agreed that, for any goods sold to the bankrupt by any one of these creditors during the term of the agreement, there should be a preferred claim against the assets for the amount thereof.

Appellees were in the wholesale grocery business, and had all along been selling goods to appellant; the sales being frequent and the most usual terms being 30 days. Upon the agreement being made, it continued to sell as theretofore, the sales being almost daily, and sometimes several items in a day, and upon such sales payments were made with more or less regularity, sometimes in cash and sometimes through a return of goods. This course of dealing continued into the middle or latter part of March.

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5 practice notes
  • In re Fulghum Const. Corp., No. 81-3040.
    • United States
    • United States District Courts. 6th Circuit. United States District Court of Middle District of Tennessee
    • September 18, 1981
    ...383 F.2d 314 (8th Cir.), cert. denied, 389 U.S. 1021, 88 S.Ct. 593, 19 L.Ed.2d 662 (1967); Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921); In re Stewart, 233 F.Supp. 89 (D.Or. 1964). The thrust of these decisions is not only that the enrichment of the debtor's estate ......
  • In re Fulghum Const. Co., Bankruptcy No. 380-00235
    • United States
    • United States Bankruptcy Courts. Sixth Circuit. U.S. Bankruptcy Court — Middle District of Tennessee
    • November 28, 1980
    ...section 60a. 266 F. at 909-10 (citations omitted). Ignorance of insolvency was not required in Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921). In Marley-Morse the debtor was in the mail-order grocery business. After the debtor had failed to fill orders for several mon......
  • In re Stewart, No. B-54402.
    • United States
    • United States District Courts. 9th Circuit. United States District Court (Oregon)
    • June 17, 1964
    ...Co., 214 U.S. 292, 29 S.Ct. 619, 53 L.Ed. 1003 (1909); In re Mayo Contracting Co., 157 F. 469 (D.C.Mass. 1907); In re Marley-Morse Co., 275 F. 832 (7th Cir. 1921); Willcox v. Goess, 92 F.2d 8 (2d Cir. 1937). Although some of these decisions are premised 233 F. Supp. 93 on lack of knowledge ......
  • In re Thomas W. Garland, Inc., Bankruptcy No. 81-01175(1)
    • United States
    • United States Bankruptcy Courts. Eighth Circuit. U.S. Bankruptcy Court — Eastern District of Missouri
    • May 5, 1982
    ...Stern & Co., Inc.), 54 F.2d 478 (2d Cir. 1931); Walker v. Wilkinson, 296 F. 850 (5th Cir. 1924); Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921); In re Stewart, 233 F.Supp. 89 (D.Ore.1964). Contra: Cooper Petroleum Co. v. Hart, 379 F.2d 777 (5th Cir. 1967); Shaw v. Wal......
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5 cases
  • In re Fulghum Const. Corp., No. 81-3040.
    • United States
    • United States District Courts. 6th Circuit. United States District Court of Middle District of Tennessee
    • September 18, 1981
    ...383 F.2d 314 (8th Cir.), cert. denied, 389 U.S. 1021, 88 S.Ct. 593, 19 L.Ed.2d 662 (1967); Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921); In re Stewart, 233 F.Supp. 89 (D.Or. 1964). The thrust of these decisions is not only that the enrichment of the debtor's estate ......
  • In re Fulghum Const. Co., Bankruptcy No. 380-00235
    • United States
    • United States Bankruptcy Courts. Sixth Circuit. U.S. Bankruptcy Court — Middle District of Tennessee
    • November 28, 1980
    ...section 60a. 266 F. at 909-10 (citations omitted). Ignorance of insolvency was not required in Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921). In Marley-Morse the debtor was in the mail-order grocery business. After the debtor had failed to fill orders for several mon......
  • In re Stewart, No. B-54402.
    • United States
    • United States District Courts. 9th Circuit. United States District Court (Oregon)
    • June 17, 1964
    ...Co., 214 U.S. 292, 29 S.Ct. 619, 53 L.Ed. 1003 (1909); In re Mayo Contracting Co., 157 F. 469 (D.C.Mass. 1907); In re Marley-Morse Co., 275 F. 832 (7th Cir. 1921); Willcox v. Goess, 92 F.2d 8 (2d Cir. 1937). Although some of these decisions are premised 233 F. Supp. 93 on lack of knowledge ......
  • In re Thomas W. Garland, Inc., Bankruptcy No. 81-01175(1)
    • United States
    • United States Bankruptcy Courts. Eighth Circuit. U.S. Bankruptcy Court — Eastern District of Missouri
    • May 5, 1982
    ...Stern & Co., Inc.), 54 F.2d 478 (2d Cir. 1931); Walker v. Wilkinson, 296 F. 850 (5th Cir. 1924); Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921); In re Stewart, 233 F.Supp. 89 (D.Ore.1964). Contra: Cooper Petroleum Co. v. Hart, 379 F.2d 777 (5th Cir. 1967); Shaw v. Wal......
  • Request a trial to view additional results

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