In re Wilkes-Barre Light Co.

• Decision Date: 22 June 1915
• Docket Number: 2082.
• Parties: In re WILKES-BARRE LIGHT CO.
• Court: U.S. District Court — Middle District of Pennsylvania

224 F. 248

In re WILKES-BARRE LIGHT CO.

No. 2082.

United States District Court, M.D. Pennsylvania.

June 22, 1915

A Hourigan, Wm. N. Reynolds, Jr., and D. A. Fell, all of Wilkes-Barre, Pa., for petitioners.

Jos. E Fleitz, of Wilkes-Barre, Pa., C. M. Bowman, of Philadelphia Pa., and E. G. Butler, Chas. A. Shea, and Geo. J. Llewellyn all of Wilkes-Barre, Pa., for bankrupt.

WITMER District Judge.

A creditor's petition was filed, on January 24, 1912, against the Wilkes-Barre Light Company. The petition alleges that the company is engaged in business in the city of Wilkes-Barre and is by occupation a merchant, and that while insolvent it committed an act of bankruptcy in applying to the courts of Luzerne county for the appointment of a receiver. On motion a receiver was appointed by this court. Since then three receivers were substituted for the one originally appointed, who have managed the business of the company to date. On February 14, 1912, the company demurred to the petition, assigning five reasons, one of them being the lack of jurisdiction; and on the same day three answers were filed, two by intervening creditors, and one by stockholders and bondholders. On February 17th of the same year the petitioning creditors, the light company, and the intervening creditors agreed on a suspension of proceedings until any of the parties should give 10 days' notice to resume; the object of the agreement being, as stated, for 'the purpose of harmonizing all conflicting interests, and promoting the business of the company, and securing to it a full enjoyment of its franchise. ' Since then the parties to the agreement, having failed in their purpose, moved the court to a determination of the issues presented by the creditor's petition, and the demurrer and the answers thereto, and on consideration the court overruled the demurrer, reserving the matter of jurisdiction, also raised in the answers filed. Testimony was taken, and the matter as presented, determining whether the petition can be maintained, rests in the answer whether a corporation of the character of the light company is embraced in the provisions of the Bankruptcy Act.

The company was incorporated April 19, 1910, in compliance with the requirements of an act of the General Assembly of Pennsylvania entitled 'An act to provide for the incorporation and regulation of certain corporations,' approved the 29th day of April, 1874 (P.L. 73), and the several supplements thereto, for the purpose of 'manufacturing electricity, supplying of light, heat and power by means of electricity to the public in the city of Wilkes-Barre, Luzerne county, Pennsylvania, and to such persons, partnerships, and corporations residing therein or adjacent thereto as may desire the same. ' It appears in evidence that the company accepted the charter and perfected its organization. The necessary buildings, machinery, and apparatus for supplying light, heat, and power were erected, and means furnished to distribute the same to its patrons, such as department stores, theaters, dwellings, running elevators, etc., from which it realized a gross income of about $30,000 per annum. In brief, the company is in the business of generating electricity and supplying the same to all who may be in need of it at a determined rate of compensation.

Is this company principally engaged in mercantile pursuits, or a merchant, as alleged in the petition, under the term implied in the act? The bankruptcy law (Act July 1, 1898, c. 541 Sec. 4, 30 Stat. 547 (U.S. Comp. St. 1901, p. 3423), as amended by A...