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FRIDAY V. HALL & KAUL CO., 216 U. S. 449 (1910)

U.S. Supreme Court

Friday v. Hall & Kaul Co., 216 U.S. 449 (1910)

Friday v. Hall & Kaul Company

No. 68

Argued January 10, 1910

Decided February 21, 1910

216 U.S. 449


"Manufacturing," as used in the Bankrupt Act of 1898, has no meaning from adjudication as used in former laws, nor has it any technical meaning. In construing the act, the intention of Congress to include corporations engaged in manufacturing will be regarded by giving the term a liberal, rather than a narrow, meaning.

A corporation organized to construct railroads, buildings and other

Page 216 U. S. 450

structures, whose principal business is making and constructing arches, walls, bridges and other buildings out of concrete, and which buys and combines together raw materials in making the concrete and supplies labor, machinery and materials at the place that the contracts call for, is a corporation engaged principally in manufacturing within the meaning of § 4 of the Bankrupt Act as amended February 5, 1903, c. 487, 32 Stat. 797.

158 F. 593 reversed.

The Monongahela Construction Company, a corporation organized under the law of Pennsylvania, was, in an involuntary proceeding, adjudged a bankrupt in the District Court for the Western District of Pennsylvania. Upon a petition for review, filed by a judgment creditor, the adjudication was set aside upon the ground that the construction company was not "a corporation engaged principally in manufacturing," as found by the bankrupt court. The opinion of the circuit court of appeals is reported in 158 F. 593.

From the agreed statement of facts it appears:

1st. That the Monongahela Construction Company's charter sets out that it was organized

"for the purpose of constructing, erecting, and repairing railroads, traction lines, duly incorporated, and streets, roads, buildings, structures, works or improvements of public or private use or utility."

2d. That its principal business had been "making and constructing arches, walls, and abutments, bridges, buildings, etc., out of concrete."

3d. That,

"in carrying on its business, it buys and combines together raw materials, such as cement, gravel, and sand in the making of concrete, and supplies labor, machinery, and appliances necessary for the proper carrying on of said business, of constructing and erecting concrete arches, piers, buildings, and structures, and excavating therefor at such time and place as its contracts call for."

4th. It has no permanent shop or factory, but has a warehouse.

Page 216 U. S. 453

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