In re Starks-Ullman Saddlery Co.

• Decision Date: 19 July 1909
• Docket Number: 1,914.
• Citation: 171 F. 834
• Parties: In re STARKS-ULLMAN SADDLERY CO.
• Court: U.S. Court of Appeals — Sixth Circuit

171 F. 834

In re STARKS-ULLMAN SADDLERY CO.

No. 1,914.

United States Court of Appeals, Sixth Circuit.

July 19, 1909

W. V Eaton, for petitioners.

W. F Bradshaw, for respondents.

Before LURTON, SEVERENS, and WARRINGTON, Circuit Judges.

LURTON Circuit Judge.

The petitioners are creditors of the bankrupt, a corporation engaged in business at Paducah, Ky. The creditors filed claims, which they asserted were liens upon the property of the bankrupt, which have been disallowed. The claim of lien is based upon section 2487, Ky. St. (Russell's St. Sec 2399), which reads as follows:

'2487. (Lien of Employes and Materialmen on Property Assigned for Benefit of Creditors.) When the property or effects of any (mine) railroad, turnpike, canal or other public improvement company, or of any owner or operator of any rolling mill, foundry or other manufacturing establishment, whether incorporated or not, shall be assigned for the benefit of creditors, shall come into the hands of any executor, administrator, commissioner, receiver of a court, trustee or assignee for the benefit of creditors, or shall in any wise come to be distributed among creditors, whether by operation of law or by the act of such company, owner or operator, the employes of such company, owner or operator, in such business, and the persons who shall have furnished materials or supplies for the carrying on of such business, shall have a lien upon so much of such property and effects as may have been involved in such business, and all accessories connected therewith, including the interest of such company, owner or operator in the real estate used in carrying on such business.'

The bankrupt, while engaged in the business of manufacturing harness, bridles, and other horse leather goods, was also doing business as a jobber in the same line of goods; that is, bought harness, saddles, and other horse leather goods, in a manufactured condition, and sold such goods in the condition they were bought. The claim of the petitioning creditors is exclusively for such manufactured articles, and the petitions aver that the goods so sold to the bankrupt by them were used in the jobbing branch of the business.

Judge Evans was of opinion that the petitioners had not furnished 'materials and supplies,' within the plain and obvious meaning of the Kentucky Statute, and were therefore not entitled to have their claims allowed as liens. To this conclusion we ...