The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-16
LEGAL INTELLI9ENCE.
BANKRUPTCY.

Plttsburg;-
n, he Distyfct court of he United States for me
WesterH District Of PSnn5y,Uanta. sittrO dourto
Bdnkrptcy; IN ne mater Of creditors petition TO
Judge McCandie ess delivered the following opinion:
decision abeu glS 70 be consrSnS new
and untred statute and esiabshing the practice 70
necessarily be much diversity Of opinion among both
lawyers and judges The Interests involved are fire.
quenty 50 large, and the principles 80 important,
soand of the eRsson OF CongTes re- n
THIS Bankrupt @ act is In my JUDGMENT hghiy Se6e
signed to relieve the one from oppressive liabilities
Which render him unit to S9ptr5He to - the & PrSdGS
assurance that all the property Of the debtor ex
20 retain, shall be honestly devoted TO the payment
Of bis debts With iTsndnlent 6foE it Is wisely
surrender Of bis assets for the benefit OF his creditors
she courts OF the United States is penalty not to be
the present is case uponcredltors' petition to de-
clare Hugh Campbell bankrupt N1mer91ns ferrous acts OF
MED and trial by jury aTarded de Many I judgments i
toned have been entered in the Court OF Common
Pleas Of Armstrong county ana they are all prior 10
operation. Upon final process, sale Of real estate
brought court for distribution. Under these cir
cumstances, our extraordinary power Of i1luneti9n
these judgments but the courts OF the state their
@ 1e Of S T1a into Sa
this Court as Court Of Bankruptcy. for division ion
Sheriff and the parties was granted With Leave M
tain whether, under the Bankrupt law. we have the
right interfere with the Courts OF the state In the
legitimate exercise OF their functions
After much reflection, II am satisfied we have not
% Sh s sector 81 q & o W % @ nd
would seem vs tS brig al parties and Interests
centre And to do So It IS contended that Congress-
o S6 Su to SUSPEND ali Gd
enSy e agS 20 Of all o6T TGs
dictons. This. BY virtue OF the hfth clause, Of the
Of United States gTantlng the power 20 establish
e une bad Ss TS
but they have not done SO.
March, l793 section expressly declaring, "nor shall
any Court OF State there is noting IN the BANK X
rupt law in terms repeating this statute, and the
injunction against the bankrupt and all other pa.
WSH .
pressed has reference TO parties interfering with the
yoIh1tsry bankrupt. and which Is to be preserved
II does not refer 70 he coGTs Of sass OF
to their executive officers 1t was not designed to
pendent which is exercising is sioEts to
ing the iegimste liens S to which they s are subject
reserying the residue as fund, for the assignee in
ssR R ha sw s hsS be hsa
GgeHSSe Se 81 @ ms deS nd has s vSG eo
WITH ali the ohef credIoPs pro rad would be err
@ Of h Sf I ored @ 6e s Of
OF impaired The i4th section expressly protects hin:
this Court, to discharge any en upon any property,
% OF b s1nh en or ohsT ny me
18th section lie is permitted to sell all ulltnculoered
most for the interest Of the creditors Where there
h &
Iupc f9E the SGo 20 m SsSt ner @ ne
or sale Or the creditor may release or convey his
Sstole deb In bankruptcy.
CONGRESS Of the sanctity OF liens obtained before the
inception Of proceedings IN DopkESspSy M tS Snd they
Visions Of the first section It Is among the elemea-
tntes, that every section, provision, and clause Of
statute shall BE exgounded by reference 70 every
section may be qualified ana Limited 6y co conditions adj
All liens then remain intact. The bankrupts final
certificate operates to discharge his and future
scquistIons while at the same time the mortgages
n n e sK Eh ThS%s remedy @ would be
It is true that the rst section Of the declares
% bs 1S
sEns $ the Ssn5SPI ana s
demand under the bankruptcy" But as the supreme
oSnoS By mS Brother
Hs S OF " PeSs Of a
county have full and complete jurisdiction over the
had attached long bstoFe any act Of bankruptcy was
It's o H he OTePsen nS
gTes the 1stes @ Gon5 foreign forum IN
When the Jurisdiction Of q Court and the right of q
Paint prosecute his suit in t. have attached
that right cannot be arres ted or taken away by pro
eSSdSt0n not %ersS oo@y sf in nasS SsSessy Hs
For II one may epjoln, the other retort by In
being liable to pr ocess for contempt in one f they
| dare TO proceed In the other. Neither take
property from the custody OF the other by replevn
| jurisdiction, extremely embarrassing in the admin
istraon of justice. The fact therefore that an IN
eES0 The
culea that are the necessary result of attempt
exercise that power over party who Is ltgant In
, another and Independent forum,
1t follows, therefore that this Courb has super
Il Visory power over the Court of Common Pleas OF
IL is conferred by the Bankrupt law But we cannoi
discover any provision in that act which limits the
Jurisdiction of the state Courts, or cOnfers aay
| power on the Bankrupt Court to supersede theiI
jurisdiction, or wrest property from the custody Of
their officers. On the contrary IL provides, IN The
l4th sectiOD that the assignee may prosecute and
defend all suits at law or,nequily, pending at the time
of the adjudication of bankruptcy IN lghtch such bank
THpt Is party In his own name, In the same manner
and nth te IKE etec as they might have been prose
cuted defended by such bankrupt" In other words
as TO the estate and property OF the bankrupt the
assignee is subrOgaed all his rights and spOnsi
bilia. The act sends the assignee TO the State Court
! and admits Its power over him. IL c0nferS no au
thorty on thls Court 10 restrain proceedings thereiI
by Injunction or other process much less 10 take pro
perty out ofits custody or possession with strong
= | hand.
! | Finding such grant of power, either in dlrec
| terms by necessary implication from any of tn
| provisions OF the BANKRUPT law not st bertl
20 We sha tSeeTe 6 n
solve this and all other injunctOns in similar cases
. IhAye not submitted this opinion TO my Brothe
GreT; but IL be source OF qualification TO lear
that sitting with him recently, at Circuit In Phils
, delphia we conferred upon this case, and 40
pleased TO say that concurred In the legal princ
| pies upon which It should be decided
| Injunction dissolved.
This case was argued by Mr. Patterson for, and b
Mr. Painter, Mr.. SOluen' anu Seherhi roster aBains
e | the Injunction.
N QUESTION oT FRAUD ooNsIDERED.
m H,,,yt nj TJniea States