107 Pa. 327 | Pa. | 1884
delivered the opinion of the court, November 13th, 1884.
The fund for distribution is the proceeds of the individual personal property of William E. Reis, consisting of the furniture and other household goods contained in his dwelling-house.
William E. Reis and George L. Reis were partners under the name and style of Reis Brothers, and were the owners and operators of an extensive sheet-iron mill or manufactory in the city of New Castle; in the carrying on of that business they employed a number of operators and laborers, to whom, at the time of the sale, they were indebted for labor rendered within six months preceding ; the liabilities of Reis Brothers largety exceeded their assets; they were admittedly insolvent. The labor claimants, therefore, gave notice to the sheriff of their respective claims; the notices were in proper form, and the claims were correct in amount. No fact is controverted; the only question is whether or not the labor claimants employed in and about the work of the mills are entitled to a preference
The correct solution of this question involves the construction of the Act of 9th April, 1872, which is entitled “An Act for the better protection of the wages of mechanics, miners, laborers and others.” As the law was, prior to 1872, the owners or lessees of any works or mines, might, and they frequently did, in anticipation of death or insolvency prefer certain of their creditors, to the prejudice of the claims of the mechanics and laborers in their employ; this preference was often effected by direct and absolute sales or transfer of their works or mines, and sometimes by means of execution in the name of those whom they chose to prefer. The persons, thus exposed to loss, in many cases, cannot vigilantly assert their claims without hazarding their means of subsistence, and they are generally of that class of our population least able to bear the hardships which thus, frequently, they were called upon to endure. It was doubtless to prevent the recurrence of this evil that the Act of 1872 was passed.
The first section of the Act provides as follows: “ That all moneys that may be due, or hereafter become due, for labor and services rendered by any miner, mechanic, laborer or clerk, from any person or persons, or chartered company employing clerks, miners, mechanics or laborers, either as owners, lessees, contractors or underowners of any works, mines, manufactory or other business where clerks, miners or mechanics are employed, whether at so much per diem or otherwise for any period not exceeding six months immediately preceding the sale and transfer of such works, mines, manufactories or business, or other property connected therewith, in carrying on said business, by execution or otherwise, preceding the death or insolvency of such employer or employers, shall be a lien upon said mine, manufactory, business or other property in and about, or used in carrying on the said business, or in connection therewith to the extent of the interest of said owners or contractors, as the case may be, in said property, and shall be preferred, and first paid out of the proceeds of the sale of said mine, manufactory, business or other property as aforesaid.” It must be admitted that the language here employed is obscure. It is somewhat difficult to understand when we come to apply the statute, what is meant by a sale or transfer “ preceding death or insolvency of the employer.” When a sale or transfer has been made we know, if we take the words in their widest signification, that it precedes the
The purpose of this section, as we understand it, is to give the laborer a claim under certain limitations and conditions, upon the purchase money arising from the sale of any works, mines, manufactory or other business and property, specified in the Act, no matter by what device that transfer may be effected; and, as the sale and transfer referred to, is of the mine, manufactory, &c., it is against that mine, manufactory, &c., as the specific subject of sale that the lien attaches.
But the third section we think is intended to apply in a different state of affairs.
“ In all cases of the death, insolvency or assignment, of any person or persons or chartered company, engaged in operations as hereinbefore mentioned, or of executions issued against them, the lien of preference mentioned in the first section of this Act, with the like limitations and powers, shall extend to every property of said persons or chartered company.”
The first section, as we have already said, has special refer
The decree is therefore reversed, the report of the Auditor confirmed, and it is ordered that the money be paid out accordingly, and that the costs of this appeal be paid by the ap-pellees.