Opinion
No. 14220-H.
January 10, 1931.
Kiggens Hoffman and Leslie S. Bowden, all of Los Angeles, Cal., for petitioning creditors.
Edson Abel, of San Francisco, Cal., for Los Angeles County Farm Bureau.
George C. Johnson, of Los Angeles, Cal., for alleged bankrupt.
Gibson, Dunn Crutcher, of Los Angeles, Cal., for intervening creditor.
In Bankruptcy. Involuntary proceeding for the adjudication as a bankrupt of the Weeks Poultry Community, Incorporated. The special master recommended that an order be made dismissing the petition, on the ground that the alleged bankrupt was not a business, moneyed, or commercial corporation, and not amenable to the Bankruptcy Laws of the United States.
Special master's recommendations adopted, and decree ordered dismissing petition.
The report of the special master disclosed that the Weeks Poultry Community, Inc., was a corporation organized on a co-operative basis for purpose of packing and marketing eggs and other agricultural products for members and others, to the end that members might procure and obtain greater profits on their respective products. Members were also allowed dividends not to exceed 8 per cent. on their capital investment, with value of membership in event of resignation, withdrawal, or expulsion as member.
From a study of this case I am of the opinion that the alleged bankrupt is not a moneyed, business, or commercial corporation within the meaning of the United States Bankruptcy Act (11 USCA), and that In re Dairy Marketing Ass'n of Ft. Wayne, Inc. (D.C.) 8 F.2d 626, clearly decides the question. The other business, if it could be called such, transacted, was merely incidental to the main business of the association.
The recommendations of the special master are therefore adopted, and counsel for the alleged bankrupt will prepare a decree accordingly.