HAUSELT V. HARRISON, 105 U. S. 401 (1881)

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U.S. Supreme Court

Hauselt v. Harrison, 105 U.S. 401 (1881)

Hauselt v. Harrison

105 U.S. 401


A. entered into a written contract with B. whereby, in consideration of moneys advanced by the latter for the purchase of skins, he agreed that he would tan, finish, and deliver them to B. B., in consideration of a commission on sales and a further percentage to cover insurance, storage, and labor, agreed to sell them, and put the proceeds, less his commissions and advances at the disposal of A. It was further agreed that all the skins, whether green, in the process of tanning, tanned, or tanned and finished, should be considered as security for refunding the moneys advanced. The business was for about six months carried on until A. became unable, from sickness and financial embarrassment, to proceed with it, and he was then indebted to B., who was aware of his condition. They, in order to carry out the first contract, entered into another whereby B. was to take possession of A.'s tannery and run and use it with such materials there as would be necessary to finish and complete the skins, and sell them, the net proceeds to be put to the credit of A. after

Page 105 U. S. 402

deducting advances and expenses. A. four days thereafter, filed his petition in bankruptcy. B. took possession of the tannery, and A.'s assignee in bankruptcy brought replevin for the skins.


1. That A. had not an unqualified property in them, but they were subject to a charge in the nature of a mortgage in favor of B., which was binding on the parties and A.'s assignee in bankruptcy.

2. That the second contract was not fraudulent, within the meaning of the bankrupt law.

The facts are stated in the opinion of the Court.

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