Page:Federal Reporter, 1st Series, Volume 4.djvu/85

JS BE WSLLS. 71 �These wages are somewhat analogous to claims for expend- itures incurred in preserving or taking care of the bankrupt's property bef ore it cornes into the hands of the assignee ; and such expenditures will be allowed by the bankrupt court in the exercise of its equitable jurisdiction. In re Orant, 2 Story, 312; In re Fortune, 2 B. E. 662. �The saving clause to the order (whichwas madebythelate Judge Ketcham) setting aside the composition, has, I think, Bome significance: "Composition set aside and bankruptcy resumed, saving ail rights attached meantime. " Now, I am not ^ aware that it bas been claimed that any "rights attached" to the bankrupt's assets while the composition was in force other than these labor claims; and, it seems to me, it is not a strained construction of this clause to hold that the deserv- ing claims of Thomas Pomeroy and his fellow workmen are within its scope and intent. �The wages of labor are regarded by the law with especial favor. Hence, in the distribution of the estate of a bank- rupt a partial' preference is given to such debts by section 5101 of the United States Eevised Statutes. The labor claim in question here in amount falls within the limit of the statu- tory preference ; and, it not otherwise covered by the letter of the law, is within its spirit. But it is said that when the composition was set aside there remained of the assets less ' in qaantity than when the original petition was filed. This claimant, however, is not responsible for that resuit. If Wells disposed of assets and failed to make due applica- tion of the proceeds, surely the claimant is not to blame. That was a risk the creditors voluntarily assumed when they left Wells in possession of the property. �And now, to-wit, October 15, 1880, the exceptions to the register's report are sustained, and it is ordered that the as- signee pay in full the claim of Thomas Pomeroy for his afore- said wages. ����