The New York herald., 1878-08-25
WRECKED IN BUSINESS.
More Merchants on the Shoals
of Bankrup cy.
THEIR ASSETS AND LIABILITIES.
Chief Justice Waite Renders Very
important Decision.

Whitney l. Co., Wholesale dealers In boots ana
shoes No. S12 Broadway, failed yesterday and went
into voluntary bankruptcy before Register Dayton.
The main OF their embarrassment are depres-
slou IN trade, heavy expenses. poor collections ana
too little capital TO carry on their larao business
Their Indebtedness is mainly 10 manufacturers in
Massachusetts. Boston, Lynn, Worcester, Hsverhill
ana spencer The total liabilities are about $l32, 500,
Of which only 50, 700 are secured. The nominal
assets amount to about $l27. 800, consisting
OF stock, S7l.7l9 75; open accounts ABOUT
$45, ,000i promissory noes, S10,5 and cash, $50.
Mr. Whitney has individual assets consisting
oi $50 acres OF land In Michigan, valued at $500:
promissory notes, 500; one-third interest In the
assets OF Whitney. Cook Co., $500; one-quarter In
terest IN tho assets Of Hodge, wnnney Coos Il Co.,
$3.50, aud ten snares of the Brookiyu SawinIll Com
ppy. par value ST. 800 The only secured creditor Is
the aercnants' Nallonai Bank WHO mold prom issory
notes OF rous parties iOr Sll677 63 10 secure their
claim OF $670o The following tho priucipa cred-
tors .. NE nrm;-At Bos,oa-Dsvis, wnneomD 4 Co..
HAIRS 4 Co., 81. .o4s %; Charles y. Lancaster.
s2,Sol 4s; Lorins Reynolds, ,sS,ss2 II; Rice 4
s2,l2a 20; w.i.c 4 MaeomO.r. 81, ,4os 7s; rnomss
Wni. Co., $4,4ls 20; Langley Il smtn. So, 4s3 So;
Fss..:. FFs ss wn II, Boys: y cy..y saas' Jo ST. a.
ssS psss cs 81 Asss; Co.,
Co., 81, ,665 6s; James Muuroo Il Co., $1,733 81. Al
Spencer, Mass-lsaac Proutv Co., 81 l69 81; 4.
l0ii a, a.ssrn DG sS aas;pa Se6as g.; S.i:
Brothers, $l,4e9 q At Worcester, Aass..D e
Rausom Il Co $2,044 AZ; Walker Brown. 81, S9L
A, marlborough i,ss &C. D. Kiugmsn. Sl,l49 60;
Leonard & Barrors, $3.O So Z. T. Browning, New
YORK, 81. eeo e6; B A Coro'n son, Webster Mass,
$l0l5 90. The house has been 10 business tor mum
Der Of yenrs and is composed OF Ira 9. wntney and
Al. red A. Farley. Il was formerly Hodge, Whitney
Il Co., which dissolved December 81 1873, and WHIT
nov, Cook Co, whoa dissolved January l, 1877
Their capital was about 100000
FAILURES o. PIANO MANUFACTURERS.
Hardman h Co., manufacturers OF pianos At Tenth
and Flityseventh street, have failed, being
unable to carry the TERMS Of their settlements
former failure 1876. whereby they agreed pay in
full iu one and three years, the.s abili
ties amounting 70 $4,000. Thoy paid OF portion
OF their composition papers. Their liabilities
amount 10 abou $1ls,OOo and thor assets valued
about SAL 5O0 wuich includes stock, SIS, 600;
ohInsry, &c, $1,000; open accounts. $4,000.
The ia,ure OF William Schasfler, piano manufacturer
iiabii,ies amounting 10 about SIC, 600 He suffered
losses by two failures n which no discounted paper
property Tenth and Forty fourth street for
500 about the lace of The mortgages He has
in the manufacturing business tour years, starting
with q capital Of $i2, ,0o0.
INT oRTANT DECISION IN BANKRUPTCY.
Chief Justice Wato has just rendered an important
and elaborate decision IN the bankruptcy case OF
HOLMES Lissberger, metal merchants, who failed In
1874 for nearly $1,ocO,0oo During the composition
meeting Henry +. Ham,iI, who was represented by
receiver cut OF the Supreme Court Of the State Of
New YORK, hied proof OF debt Tor $lI235 aud 70
this proof the debtors and some o. the creditors
objected. The presiding officer ruled adversely and
admitted tho proof, and the question was then certt
fed 70 the Court for ruling. Judge Biatchiord
c,ded tha, The Deputy Clerk, Mr. John A. Osborn who
was The prssiding oaaccr, had not erred IN his
ruling AMI tue receiver voted favor Of the eompo-
tho creditors, wtn the exception Of HamilL were
paid. In February 1876, Hamill's rccsvor applied to
Judge Blachiord for an order compelling the debtors
10 pay he imposition on the amount tnat had been
proved under the clause OF the Composition act,
whicn says "shat the provisions oi any cemposition
made pursuance OF TINS section may De enforced by
tho Court, motion mado II summary manner by
any person intorssted and any disooedience Of the
order VI tho Couri made on such motion shall bs
deemed 10 be contempt OF Court"
Tho motion argued and reference had, and
Of the referees report tho debtors OK.
ceplea, ciamiug that tho receiver not creditor
anu not enti,led 10 any dividend. Juoge Bistchford
ruled that the action oil tne Court IN the composition
proceedings adjudication OF the dept, and that
the debtors lust the position on the amount
(Sll2 1851 into Cour. The Debtors under tho advice
oI tne,r counsel, William g. Choate, VINO has since
become tho District Judge, and Melville H. Rsgens-
burger resisted the order aud appealed 10 the Circuit
Court Proceedings to punish the debtors for cou-
tempt Of Court were then vigorously pressed BY tho
receiver -
The appeal was heard In lay by Chisf Sstico Waite,
who gives ns opinion. He reverses the decision
Of District Court aud holds that the action OF the
Court in the composition proceedings was not an ad
judication OF tue debt To deprive the debtors from
showing That the receiver was not creditor or that
the debt should DO reduced; that the Anng of the
debt in the progress oi tho composition was merely
summary method OF ascertsinlng At whai amount The
creditor should be reckonsd, and thAt the proceed
was not q Judicial detsrmiuation OF tho debt The
OF tne appeal TO be paid by the receiver.
Robert D. Benedict represented the receiver In the
argument, aud \. N. Bangs and Melville II. Ressns-
burger represented the d, btora
PETITIONS IN BANKRUPTCY.
David Houston, OF Harlem, has 1led q voluntary
ps,ition In bankruptcy before Register Allen. His
Liabilities amount $751; 752 es. which 500 900 are
secured. The majority OF mis- liabilities are bond
and mortgage on property in lo6th, lllth and l2A.h
streets The secured creditors Ehzsbslh Gilbert,
900; estate OF William Brady, $l8 0o0 Charles
~ Az N