The Florida star., 1901-07-19
IMPORTANT DECISION.
An individual Can Legally Conduct a Bus
iness Under q Firm Name.

From the Tallahasseean.
A legal decision which is of great i'm
portance in practically every nook and
corner Of the United States has Just been
handed down by the United States cir
cult court of appeals for the fifth federal
circuit, sitting at New Orleans, La, in a
case originating in Tallahassee, Fla. The
case is one growing out of the present
national bankruptcy law, and its prose
cution to what is thought to be final
adjudication of the point involved,
amounting to precedent for the future,
Is due to the assiduity and compelling
logic of Hon. George b. Perkins, of Tai
lahassee, attorney for the bankrupt, and
generally recognized as one of the most
capable and promising of Florida's young
lawyers.
The facts and rulings of this widely in
terestlng case may be briefly stated as
follows: Two years ago Richard B. Car
penter, former mayor of Tallahassee,
and latterly merchant of same city,
was individually adjudged a bankrupt,
and thereupon Carpenter surrendered
stock of merchandise which had been
held and dealt in by Mr.. Carpenter un-.
der the business name of the Red Gro
cery company.
From the stock Carpenter claimed his
exemption of 81 200, under the cOnstitu-
ton of the state of Florida, he being the
the head of a, family residing in this
state, which the trustee allowed.
The large wholesale firm incorporated
as the G. B. Rogers company, of Jackson
vile, creditor of Mr.. Carpenter, filed
exceptions to the report of the trustee in
bankruptcy allowing the exemptions
claimed in such goods, on the ground
that an individual doing business under
firm name amounted to holding out
TO the world that such individual had
partner, and hence said goods were part
nership goods from which the exemp-
tlons allowed by the Florida constitution
could not be claimed. Under the law. of
Florida exemptions cannot be claimed'in
partnership property.
The matter came on for hearing upon
the creditors exception before the referee
in bankruptcy in January, 1900, and the
referee ruled that said goods were part
nership goods, and sustained the excep-
ton of the G. b. Rogers company people.
Upon review OF sucll ruling by Hon.
Charles Swayne, United States district
judge for the Northern district of FlOri-
da, the ruling Of the referee was affirmed
and Carpenter, the bankrupt, was ad-
judged not entitled 10 the exemptions
claimed and allowed by the trustee.
These adverse rulings, however, did
not discOncert Mr.. Perkins, Carpenters
attorney, who was confident Of the cor
rectness of his contention in the premi-
ses.
The matter was appealed to the United
States circuit court of appeals, at New
Orleans, which court has just unanimous
ly reversed the judgmen: of the lower
court, overruled the creditors exception,
and adiudged land herein lies the wide
Importance of the case) that man has
the right TO conduct business under a
firm name, without being deprived OF
his exemptions, and that an individual
doing business under a firm name is not
necessarily holding out to the world that
the business was that of firm, nor is
there any presumption either of law or
of fact that such individual had part
ner in such business-that 10 constitute
and prove partnership, so as to bar ex-
emptiOns, it must be shown that more
than one person was conducting the bus
iness. Col. r. w. Williams, of Talla-
hassee, represented the G.. b. Rogers
company.
The importance of the case lies in the
fact that it will be hereafter known as a
leading case" under the existing Fed
eral bankruptcy law. No case exactly in
point is = be found in the authorities.
The brief of the bankrupt's attorney, in
deed, was based upon reason and logic
rather than upon citation of authorities.