The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-07-11
A DECISION IN BANKRUPTCY.
One of Much Interest to Lawyers
and to Persons Conducting BUSH
ness Under Firm Names.

ness Under Firm Names.
Tallahassee. Fla, July 10.-Ae legal de-
cision, which is OF great Importance IN
practically every nook and corner of the
United States, has just been handed down
by the United States Circuit Court of APP
peals for the Fifth Federal Circuit, sit
ting at New Orleans, La, in a case orig
mating in Tallahassee. The case is one
growing out of the present national bank
ruptcy law, and its prosecution to what
is thought to be a final adjudication of
the point involved. amounting to a pre-
cedent for the future, is one to the as
siduity and compelling logic of Hon.
George B. Perkins of Tallahassee, attor-
ney for the bankrupt and generally rec
ognized as one Of the most capable and
promising of Florida's younger lawyers.
The facts and rulings of this widely in
teresting case may be briefly stated as
follows:
Two years ago Richard B. Carpenter,
former Mayor of Tallahassee,
and latterly merchant of the same city,
was individually adjudged bankrupt.
and tfereupon Carpenter surrendered a
stock of merchandise which had beeen
held and dealt in by him under the bus
mess name of the Red Grocery Company.
From this stock Mr.. Carpenter claimed
his exemption of 81, 900 under the constitu-
ton of Florida, he being the head of
family residing in this state-which claim
the trustee in bankruptcy allowed.
The large wholesale firm Incorporated as
the c. B. Rogers Company of Jackson
vile, creditor of Mr.. Carpenter, filed ex-
| ceptions to the report of the trustee al
lowing the exemptions claimed in such
goods, on the ground that an individual
doing business under a firm name
amounted to a holding out to the world
| that such individual had a partner, and
hence said goods were partnership goods,
from which the exemptions allowed by
the Florida constitution could not be
claimed Under the law of Florida exemp-
lions 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 exception
of the c. B. Rogers Co. people.
Upon review of such ruling by Hon.
Charles Swayne, United States district
Judge for the Northern District of Flor
ida the ruling of the referee was affirm
ed, and Carpenter, the bankrupt, was ad-
Judged not entitled to the exemptions
claimed and allowed by the trustee.
These adverse rulings. however, did not
discomfort Mr.. Perkins, Carpenters at
toTney, who was confident OF the correct
ness of his contention in the premises.
The matter was appealed to the United
States Circuit Court of Appeals, at New
Orleans, which court has just unanimous
ly reversed the judgment of the lower
courts, overruled the creditors exception
and adjudged (and herein lies the
wide Importance of the case) that man
has the right to conduct a business un-
der firm name, without being deprived
of his exemptions, and that an individual
Doing business under 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 a partner
in such businesS-that to constitute and
prove a partnership, so as to bar exemp-
lions. IT must be Shown that more than
one person was conducting the business.
Col. r. w. Williams of Tallahassee repre-
scented the c. b. Rogers Co.
The Importance of this case lies in the
fact that it will hereafter be known rs
a leading case" under the existing fed
eral bankruptcy law. No case exactly
in point is to 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.