139 F. 52 | U.S. Circuit Court for the District of Middle Pennsylvania | 1905
It is admitted that the property in question was delivered to the bankrupt under the following agreement, and that the right of the claimant depends upon the construction to be given thereto.
Howard, Pa., June 1, 1904.
Good Roads Machinery Co.
Kennett Square, Pa.
C. M. Tice,
Oak Grove, Clinton Co., Pa.
Care N. X. C. R. R.
About June 10.
Rent Contract.
1. No. 4 Champion Rock Crusher, one set Mountings and Brake, one 16 ft. Elevator, one Twelve Ton Bin, one 32"x7 ft Revolving Screen. C. M. Tice to pay freight on above machinery and to pay rent for use of same as follows: $200 in cash, the receipt of which the Good Roads Machinery Co. hereby acknowledges for rent from receipt of machinery till May 1, 1905; on May 1, 1905, * * * to pay $100 for rent till July 1, 1905; on July 1, 1905, to pay $300 for rent till Aug. 1, 1905; on August 1 to pay $100 for rent till
J. C. Lawrence, Agt. for Good Roads Machinery Co.
C. M. Tice.
The character of this instrument is to be determined by the local law. Hewit v. Berlin Iron Works, 194 U. S. 296, 24 Sup. Ct. 690, 48 L. Ed. 986; In re Butterwick (D. C.) 131 Fed. 371. By a long line of decisions the courts of Pennsylvania are committed to the general doctrine that the delivery of goods with a provision that the title shall not pass until the purchase price has been paid is void as to creditors of the party to whom they are delivered. Martin v. Mathiot, 14 Serg. & R. 214, 16 Am. Dec. 491; Chamberlain v. Smith, 44 Pa. 431; Brunswick v. Hoover, 95 Pa. 508, 40 Am. Rep. 674; Farquhar v. McAlevy, 142 Pa. 233, 21 Atl. 811, 24 Am. St. Rep. 497; Ott v. Sweatman, 166 Pa. 217, 31 Atl. 102; Morgan Electric Co. v. Brown, 193 Pa. 351, 44 Atl. 459. And it is also declared that the essential character of the transaction will be regarded, rather than the particular form which it assumes. Brunswick v. Hoover, 95 Pa. 508, 40 Am. Rep. 674; Ott v. Sweatman, 166 Pa. 217, 31 Atl. 102; Hervey v. Locomotive Works, 93 U. S. 664, 23 L. Ed. 1003. Notwithstanding this, however, there have been so many refinements and distinctions, as well as conflicting, if not contradictory, deliverances, that it is not always easy to determine whether any given transaction is, on the one hand, a conditional sale, or, on the other, a bailment. It has been held, for instance, to be of the essence of a bailment that there shall be a return of the property. Stephens v. Gifford, 137 Pa. 219, 20 Atl. 542, 21 Am. St. Rep. 868. And that this must therefore be stipulated for. Farquhar v. McAlevy, 142 Pa. 233, 21 Atl. 811, 24 Am. St. Rep. 497; Morgan Electric Co. v. Brown, 193 Pa. 351, 44 Atl. 459. But the necessity for such a stipulation is denied in Enlow v. Klein, 79 Pa. 488, and Edwards’ Appeal, 105 Pa. 103; stress being laid in the latter case, however, on provision for a definite term; while in Stiles v. Seaton, 200 Pa. 114, 49 Atl. 774, it is declared that neither a stipulation for the return of the property, nor a definite term, is neces.sary, although both are admitted to be important, and the absence of them sometimes controlling.
Disposing, then, of the case in hand as best we may, the question is as to the character of the writing under which the property was delivered to the bankrupt. It is to be observed that, although it is called a “rent contract,” and the party to whom the possession was given is “to pay rent for the use of the same” in certain installments, covering specified periods, there is no actual hiring or leasing in so many words, nor anything beyond what has been mentioned, to make that out of it. If it is a contract of bailment, in other words, it is such not by direct provision, but by implication only. In view of this, the failure to provide for a return of the property, and the
The exceptions are overruled, and the report of the referee recommending the dismissal of the petition is confirmed.