The Montgomery advertiser., 1908-12-31
IS ADUDGED
 NO BANKRUPT Victory for ]. 5. Faulk alld Co. CONTESTED TIE REeE1vERsHIP Was First Case in Alabama of
 Successful Contest. Alleged Consent of Firm ro Petition In Bankruptcy I. sueess.fuuy
 Denied--case Very Inter-
 estiBg.

By decision Q the United StateI Circuit Court of Appeals in the case oi T. S. Fauik and Company. of Samson against steiner, Lobman and Frank. oi Montgomery. and others. the plaintiff ii victor in the contest of petition to ad. judge them bankrupts. The decision delivered in New Orleans. was handed down Tuesday. and the Faulk attorneys in Montgomery were notified of the out come.
 By the decision. the order of Referee Stratton appointing a receiver was va cated; the order of Judge Jones in the District Court refusing to vacate the appointment was reversed. and rever- sal was also accorded 6 subsequent or der of the court requiring an e1S,00C bond of the FauIk Company.
 The petition of three firms to adjudgt the Faulk Company bankrupts had been contested before Referee Strattotl, and before Judge Jones. in each of which tribunals the petitioners were upheld. Faulk and Company. taking the case to the United States Court of Appeals received a favorable decision. revers- Ing the action Of the Referee and of the District Court
 The case just ended has become not able throukhout the state. inasmuch as 1t is one of the first petitions In bankruptcy to he Contested by the al- legged bankruptN tAfore a United States Court in Aiaba aA. and carried through successfully byfthe contestants.
 On NovennbeA Q 1907, petition in bankruptcy wssS .tlled against T. S. Fauik and Co4npany. extensive mer- cantile dea1erA} of Samson. by three large firms Stef1er, Lobman and Frank. and SchIoss ands Kahn, of Montgomery. and the Sessoms Grocery Company. of Andalusia. Answering the petition. Referee Asa Stratton. in the absence of Judge Jones. appointed George Stuart receiver.
 Almost Immediately Faulk and Com pany entered contest to the adjudi- cation. praying, in the beginning. that the petitionlng creditors bond be fix- ed at s25.000. as a matter of protec- tion, instead of at $1.00O, as first set.
 Upon investigation, the assets of the firm were fixed at about $60,000. with liabilities at s2s.000.
 Subsequently motion was present. ed by Faulk to Judge Jones, praying that the receiver be discharged. and the order vacated. Counter al1ega- tions were entered by the petitioning creditors, to the effect that T. S. Faulk and Company had invited the petition in bankruptcy. and that such action was taken at Faulk's consent.
 Judge Jones ov6rrnied the motion to vacate the appointment. Later. how ever. though retaining the receiver, he transferred the management of the affairs of the business back into the hands of the firm. requiring of Faulk and Company E bond of S1s.000. for the protection of the petitioners. It was also decreed by Judge Jones that a Jury trial would be refused FaullS and company until after the payment of costs and expenses of the proceed ings since their institution.
 Unwilling to maintain the expenses of the proceedings. Fauik appealed from the several orders of Judge Jones and Referee Stratton, to the United States Court of Appeals, for relief. Submitted during October the case came before the Court of Appeals, re- sulting in the decision of Wednesday whereby the order appointing a ref cree was vacated; the order placing Faulk and Company under bond of S1s,00o was reversed; the order refus. ing a trial until after the payment of costs was reversed; and the costs ad- judged against the three petitionins creditors.