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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998 William Devery, Cross Examination. to Mattoon Nat, Bank of Mattoon, 111., v. First Nat. Bank of Mattoon, 111., 42 C. C. A. 4.] 2. Bankruptcy (§ 81*) — Corporations — Sufficiency of Petition. It is not enough to give a court of bankruptcy jurisdiction to adjudicate a corporation an involuntary bankrupt under Bankr. Act July 1, 1898, c. 541, § 4b, 30 Stat. 547 (U. S. Comp. St, 1901, p. 3423), as amended by Act Feb. 5, 1903, c. 487, § 4, 32 Stat. 797 (U. S. Comp. St. Supp. 1911, p. 1494), to allege that a part of its business is within the statute, but the petition must allege that to be its principal business. [Ed. Note. — For other cases, see Bankruptcy, Cent, Dig. §§ 59, 113-118, 125; Dec. Dig. § 81.*] Appeal from the District Court of the United States for the Southern District of New York. In the matter of the Imperial Film Exchange, alleged bankrupt. Appeal from an order dismissing an involuntary petition vacating an order appointing a receiver, approving a report of the master, etc. Affirmed. Waldo & Ball (G. E. Waldo, of counsel), for appellants. Luce & Davis (Seward Davis, of counsel), for appellee. Before COXE, WARD, and NOYES, Circuit Judges. PER CURIAM. [1] From what is shown in the record, outside the pleadings, concerning the business of the alleged bankrupt, it seems clear that its principal business was that of renting films for moving pictures and that it was not a corporation principally in trading or mercantile pursuits within the meaning of the provisions of the bankruptcy act as they existed when the petition was filed. The Supreme Court has approved the definition of a "trader" as "one who makes it his business to buy merchandise of goods or chattels to sell again for the purpose of making a profit." And the Supreme Court has also said that a "mercantile pursuit" is trading in the larger sense. Toxaway Hotel Co. v. Smathers, 216 U. S. 439, 30 Sup. Ct. 263, 54 L. Ed. 558. It seems too clear for argument that a corporation which leases moving picture films is not engaged in trading as above defined, and, indeed, in several recent decisions this