The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 1,007
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In Bankruptcy. In the matter of the bankruptcy of Andrew Mc-
Cann. On petition to review an order of the referee refusing to re-
lease the Citizens' Brewing Company from a bid for certain property
sold it. Order of referee affirmed.
Review of order of referee refusing to release Citizens' Brewing
Corporation from a bid of $800 for certain property sold to it through
Mr. H. A. Rubino, and which at the time of such sale was subject to a
tax due the United States.
Louis M King, of Schenectady, N. Y., for plaintiff.
Mitchell A. Kohn, of Schenectady, N. Y., for trustee.
RAY, District Judge. The property in question consisting of a stock
of liquors and cigars was duly advertised to be sold at public sale and
the notice thereof duly pubhshed and served, contained this provision:
"The stock of liquors and cigars will be sold subject to the payment of the
taxes of the War Tax Law, the purchaser to pay the tax and to furnish proot
of payment of such tax before delivery."
At the sale made subject to such provision as to payment of this tax,
which has never been changed or modified m any way, the Citizens'
Brewing Corporation was represented, and made a bid through a Mr.
Anglin of $650, which the referee refused to confirm or approve. The
referee thereafter in behalf of the trustee received bids or offers at
private sale, the highest offer at that time being $775, subject to such
tax or condition, and this was made known to Mr. Rubino, representing
the said Brewing Corporation. This offer was refused and Mr. Rubino
notified. He offered to give $775, but the referee informed him that to
obtain the property he must offer more than $775, whereupon he in
behalf of the Brewing Corporation offered $800, and this was ac-
It seems from the affidavit of Mr. Rubino that he expected at the
time to be able to make some arrangement with the United States, by
giving bond for this tax instead of paying it in cash, but in this he
failed, and was advised the tax must be paid in cash. This was no
part of the sale, and there is no claim that the offer of $800 was made
or accepted on condition such arrangement as to a bond could be made.
In his affidavit Mr. Rubino states in substance that he supposed he
could make the arrangement for a bond, and made his bid relying on
that supposition; but he makes no claim that the referee or trustee was
a party thereto, or held out any such inducement. It is claimed in the
affidavit of Mr. King that the property was appraised at too large a val-
uation, and that $650 is the fair value. But Mr. King and Mr. Rubino
were familiar with the property and circumstances, and the property
could have been sold and would have been sold for $775, but for Mr.
Rubino's bid of $800, and it would be unjust to the trustee and credi-
tors to now relieve the Brewing Corporation from its bid or offer for
the reason Mr. Rubino was disappointed in his expectations of being
able to give a bond for the tax instead of paying same in cash. Many
IN RE M9CANK
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The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/1022/: accessed November 24, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.