In re Beiermeister Bros.

208 F. 945, 1913 U.S. Dist. LEXIS 1286
CourtDistrict Court, N.D. New York
DecidedNovember 22, 1913
StatusPublished
Cited by1 cases

This text of 208 F. 945 (In re Beiermeister Bros.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Beiermeister Bros., 208 F. 945, 1913 U.S. Dist. LEXIS 1286 (N.D.N.Y. 1913).

Opinion

RAY, District Judge.

On the 3d day of November, 1913, certain creditors of the above-named bankrupt, Beiermeister Bros. Company, filed a petition against said corporation in involuntary proceedings in the Southern district of New York, and without notice on the same day obtained an order appointing Wm. Henkel, Jr., receiver of the property of the alleged bankrupt in such district. On the 4th day of November, 1913, the above-named Beiermeister Bros. Company filed a voluntary petition in bankruptcy in the Northern district of New York, and adjudication followed as matter of course. In that proceeding Geo. Iiatt, 2d, of the city of Albany, was on the same day ap[946]*946pointed receiver of the property of the bankrupt and took possession of the property in the Northern district, in the involuntary petition filed in the Southern district of New York it was claimed or alleged that the principal place of business of the alleged bankrupt was in the Southern district of New York. In the voluntary proceeding the petition executed by the corporation pursuant to a resolution of the board of directors alleged and set out that the principal place of business of the corporation was and for several years, had been in the Northern district of New York. When the corporation was organized or incorporated the principal place of business was in the articles of incorporation stated to be at a certain place in the city and county of New York, which is in the Southern district. For some time the corporation (incorporated in 1904) had a factory in the city of New York, as well as an office or* place of business for selling its product, keeping books, receiving arid sending mail, etc. It also had a bank account in the city of New York, and most or all of its bills, letters, etc., were dated at New York. It had letter heads reading:

Telephone 989 Stuyvesant. Factory, Albany, N. Y.
Beiermeister Brothers Co. ■
(Incorporated 1904)
Importers and Manufacturers. Ladies’ Wear, Collars and Cuffs, 18, 20, 22, 18th St., Between Broadway and 6th Avenue.
New York,-, 19 — .
It had bill heads reading:
New York,-, 19 — .
M-----
To Beiermeister Bros. Co., Dr.
18, 20, 22, E. 18th St.
Waists.
Blouses. Dresses.
Terms:

Five years ago this corporation removed its entire manufacturing plant to the city of Albany, in the Northern district of New York, where all of its manufacturing has been done. There it has rented a plant for this purpose, and at the plant it had an office for the transaction of business. It also kept and had a bank account in one of the banks of the city of Albany. At the same time the corporation changed the nature and character of its business from contract manufacturing to manufacturing on its own account. The corporation has since rented and maintained an office and salesroom in the city of New York (18 East 18th street) under the management of William H. Peabody, one of the directors, who is also the secretary of the corporation, who resided in that city. This salesroom was maintained for the purpose of exhibiting samples of goods and supplying small orders. For some years the officers and directors had been Fred. Beiermeister, president, who at all times has resided in the city of Troy, a short distance from the city of Albany, in the Northern district of New York, Frederick J. Beiermeister, who at all times has resided in the city of Albany, Northern district, and said Peabody. No meeting of the stock[947]*947holders had ever been held in the city of New York, and with one exception all the meetings of the directors o£ the corporation for more than six months prior to filing its petition have been held at the Albany office, where they have met for the transaction oE the business of the corporation at least twice each month. The only directors’ meeting held in the city of New York during such time was a special meeting for the purpose of entering into a contract with Ficlitenhein & Stern, bankers of New York City, notice of which meeting was waived by all the directors. The debts of the bankrupt aggregate about $50,000, and the assets are inventoried at some $45,000, all of which, except some fixtures in the New York office and some samples of goods, all worth not to exceed $2,500, are in the Northern district of New York at the Albany factory.

Probably two-thirds of the creditors in amount reside in the Southern district of New York. Something like $20,000 is owing to parties in Albany and vicinity. There is no contest over the claims of any of these creditors. It was stated on the argument by those representing the New York City petitioning creditors that it was their purpose to remove these assets to New York City for sale there and abandon the Albany plant now being run for the purpose of completing garments cut out and saving a large amount of material that otherwise will be a dead loss. For some years substantially all deliveries of goods manufactured and sold have been made from the factory at Albany, and substantially all goods purchased have been delivered there. Sometimes small packages purchased at different ¡daces in New York City have been taken to this New York office, put in one large package, and sent on to Albany. Some of the books of the corporation have been kept at the New York office, but all the facts and information entered and contained therein relative to the sale and shipment of goods has been obtained from the books at the Albany office. It appears from the books of the corporation, which were removed to the Albany office prior to the filing of either petition in bankruptcy f that during the eight months immediately preceding- the filing of the petition in bankruptcy the bankrupt had expended in its business for merchandise purchased, rent, labor, and other expenses incident to the conduct of its business the sum of about $180,000, of which there was checked out of the First National Bank of the city of Albany, where the account was kept, more than $120,000. The bankrupt owes said bank oYer $9,000, and only owes the Greenwich Bank in New York some $2,500. The Northern district creditors request and urge in writing over their own signatures the retention of these bankruptcy proceedings in the Northern district of New York. The New York City creditors in the main by attorneys request and urge that the proceedings be had in the Southern district.

It cannot be denied that the administration of the estate in the Northern district of New York will proceed more rapidly and at a much less expense than is possible in the Southern district. There can be no question that for at least a year last past, and surely for more than the six months last past, the actual, main, and principal place of [948]*948business vof the bankrupt corporation has been at the city of Albany, in the Northern district of New York, and Fred and Frederick J. Beiermeister, two of the three directors, the other not being found, and principal officers so state under oath, and also state that it was the intent and purpose to change the main and principal place of business to Albany at the time the mode of doing business was changed some years ago. For the year last past, at least, but little business has been done in the city of New York, and this of the character before stated.

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Bluebook (online)
208 F. 945, 1913 U.S. Dist. LEXIS 1286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-beiermeister-bros-nynd-1913.