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1000 William Devery, Cross Examination.
although occasional sales were made. As already stated, there is no allegation that the corporation was "engaged principally" in a business which brought it within the bankruptcy act.
For these reasons, it must be held that the corporation in question was not subject to be adjudicated a bankrupt, and that the District Court was without jurisdiction of the proceedings further than to determine whether the corporation came within the act. Additional jurisdiction could not be conferred upon it by any waiver or by any attempt of the parties to try immaterial issues.
The order of the District Court, in so far as it dismisses the petition and vacates the order appointing a receiver, is affirmed. But such order in so far as it approves and confirms the findings and report of the special master is reversed; the District Court having no jurisdiction to pass upon the subjects involved therein.
Costs of this court are awarded to the appellee corporation. The corporation should also recover costs in the District Court, but should not recover such costs as grew out of its failure to raise and litigate the jurisdictional question.
By Mr. Kingsley :
Q. Was anything said to you by the representatives of the Patents Company relative to the royalties upon projecting machines used in Porto Rico? A. No.
Q. After the Patents Company learned that you were supplying an exhibitor in Porto Rico? A. Yes; they told us to pay the back royalties.
Q. How much did those back royalties amount to? A. I believe it figured up about two hundred and twenty-five dollars — that is, with the fines.
Q. So that, at the time the letter of withdrawal was sent to the Patents Company you were then liquidating these back royalties? A. Yes, sir.
Q. Did Mr. Steiner ever sell his interest to you? A. No, I wouldn't buy it.
Q. The larger part of the films on hand, at the time you withdrew from your license arrangement, were licensed films, were they not? A. How do you want to say "withdrew"? Why don't you say "cancelled"?
Q. Because you wrote a letter withdrawing. A. I don't know that I claim —