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THE MUSIC TRADE REVIEW
6
AN INTERESTING DECISION
In Case Arising Out of the Bankruptcy of Stultz
Bros. Just Handed Down in the U. S. Dis-
trict Court in Which Bentz Claim Is Upheld.
An interesting decision relative to the estate of
Stultz Rros., New York, bankrupt, was handed
down by Judge Augustus N. Hand in the United
States District Court last Friday. The issue as
originally presented had been decided by the referee
in bankruptcy, who maintained that John Bentz
was not entitled to a prior claim on the bankrupt's
estate because he had cashed checks for the bank-
rupt which the latter had given his workmen in
payment for their wages, and which had not been
made good at the time of the adjudication of bank-
ruptcy.
In reversing the referee, and holding that Mr
Hentz was entitled to a prior claim to the estate,
Judge Hand said :
"This is a proceeding to review the decision of
the referee in bankruptcy, who held that the claim
of John licntz was not entitled to priority. The
claimant cashed checks of the bankrupt which the
latter gave his workmen in payment for their
wages. The bankrupt had asked Bentz to cash
checks for his workmen and to keep J:he checks
for two or three days and had then promised to
make them good. This arrangement was carried
out for some time, but finally checks amounting to
$270.83, which had been cashed, were not made
good and remained unpaid at the time of adjudica-
tion.
"I am clear that the complainant can establish
no right to a preference on any theory of subroga-
tion because he did not stand in the position of
a surety toward the workmen.
"Upon another theory, however, he seems to be
entitled to a preference. The workmen themselves
were entitled to have their wages, which the
checks represented, paid in prefernce to general
creditors. The Circuit Court of Appeals of the
First Circuit, in the case of In re Worcester County
(102 Fed., 814), said in discussing a claim for a
preference which had been reduced to a note:
"In bankruptcy it is of no consequence whether
proof was made of the original account or of the
Who Makes
Your Pianos?
Can You Answer That Question?
Not the Company merely,
or even the factory superin-
tendent. But the man who
glues it together, puts in the
screws, sets the action and
keys, tunes and regulates,
varnishes and polishes it.
Cable-Nelson men are good
citizens. They know how
to make good pianos and
they take pride in their work.
note. * * * Taking a note does not discharge
an original debt which has any privileges, and either
might be proved. Such is the law of the Federal
courts. * * *"
"The Supreme Court likewise held in the Kimball
(3 Wall., 37) that a lien in admiralty upon a ship
was not discharged by taking a note for it.
' i can see no difference between a note and a
check except in form. A check is really a do-
mestic bill of exchange upon which the liability of
the drawer is the primary liability unless it is ac-
cepted by the bank and the bank is under no obli-
gation to the payee, though it may be to the drawer,
to accept the paper.
"Thus it is clear in the present case that the
checks in the hands of the workmen would have in
novvise altered the nature of their claims, and they
could have proved them and claimed priority, as
they were for wages. Bentz purchased the checks,
and was nothing more than an assignee of the sev-
eral choses in action held originally by the work-
men for their wages, except that the law merchant
gave him certain additional rights against the
workmen who had indorsed the checks as well as
against the bankrupt who made them.
"That an assignee of a claim for wages stands
in tiie shoes of the assignor and is entitled to all
his rights of preference was settled by the Supreme
Court in the case of Shropshire, Woodliff & Co.
(204 U. S., 189), where Mr. Justice Moody said:
" 'The priority is attached to the debt and not to
the person of the creditor; to the claim and not
to the claimant.'
"For these reasons the referee must be reversed
and the claim of Bentz for $270.83 adjudged to
be entitled to priority."
MILTON FOR GREAT LAKE STEAMERS.
There have recently been sold for use on steam-
ers which sail the Great Lakes several Milton
pianos, manufactured by the Milton Piano Co.,
Fifty-fifth street and Twelfth avenue, New York.
One each will be found on the Goodrich Line steam-
ers, s.s. "Christopher Columbus," s.s. "Georgia,"
s.s. "Arizona," s.s. "Carolina," and also one each
on the Graham & Morton Line steamers, s.s.
"Puritan," s.s. "City of St. Joseph," which are used
in connection with the orchestra on each ship.
TO REMODEL ESTABLISHMENT.
The A. Hospe Co., Omaha, Neb., is planning to
remodel its entire establishment. The entire front
will be torn olit and will be replaced by one more
sightly and convenient. The interior will also be
completely changed and made up to date in every
respect. In this connection a remodeling sale is
projected.
FINE SALES SHOWING IN GRANDS.
Five grand pianos, of which three were Stein-
ways and one a Hardman, were sold within the
last three weeks by Ray Ritter, piano salesman
connected with Kramer's Music House in Allen-
town, Pa. This was in addition to many sales of
uprights. This demonstrates what a live salesman
can accomplish despite talk of dull times.
SYRACUSE DEALER IN TROUBLE.
Charles M. Bedell has been appointed receiver
for Arthur L. De Robert, dealer in musical instru-
ments at 209 James street, Syracuse, N. Y. Lia-
bilities are estimated at $20,000 and assets at
$.5,000.
N. Y. Piano Factory
To Let or For Sale
CABLE-NELSON PIANO CO.
Republic Building
Factory: South Haven, Mich.
CHICAGO
FACTORY, N.W. cor. of 135th St. and
Willow Ave., five stories and basement,
50x90 on lot 50x100, light all around, elec-
trically controlled elevator, steam heat and
all modern improvements.
Possession
August 1, 1915. Now occupied by Mans-
field Piano Co.; for terms, etc., apply
CHAS. RAMSEY, KINGSTON, N. Y.