In the District Court of the United States, for the Eastern District of Pennsylvania, the United States of America, petitioner, vs. Motion Picture Patents Company, et al., defendants (1913)

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William Devery, Cross Examination. 997 bilities of your exchange were about $3,000, did you know that the Special Master, John J. Townsend, who reported upon the condition of your exchange, found that the liabilities were $13,700? A. I did not know anything of the kind. He said that was a matter for the courts at the time of the bankruptcy to decide. Q. And that is set out at page 845 of the printed record? A. There was over $11,000 protested. Mr. Kingsley: I now offer in evidence decision of the Circuit Court of Appeals, Second Circuit, made May 16th, 1912, entitled, In re Imperial Film Exchange, which appears at page 80 of Volume 198 of the Federal Keporter, and ask that it be incorporated into the record. The same is marked Defendant's Exhibit 10a, and is as follows: Defendants' Exhibit No. 10A. In re IMPERIAL FILM EXCHANGE. (Circuit Court of Appeals, Second Circuit. May 16, 1912.) No. 42. 1. Bankruptcy (§ 72*) — Corporations Subject to Act — "Trading" or "Mercantile Pursuit." A corporation engaged principally in the business of renting films for moving pictures is not engaged in trading or a mercantile pursuit which renders it subject to adjudication as an involuntary bankrupt under Bankr. Act July 1, 1898, c. 511, § lb, 30 Stat. 547 (U. S. Comp. St. 1901, p. 3123), as amended by Act Feb. 5, 1903, c. 487, § 4, 32 Stat. 797 (U. S. Comp. St. Supp. 1911, p. 1494). [Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 17; Dec. Dig. § 72.* For other definitions, see Words and Phrases, vol. 5, pp. 4477-4478; vol. 8, p. 7053. What persons are subject to bankruptcy law, see note 3