The Bedford gazette. [volume] (Bedford, Pa.) 1805-current, 1867-12-06

I'm the matter. Of Creditors Petition TO
declare Hugh Campbell n bankrupt.
Congress. by the Constitution of the
United States, had the right to bring
all parties, estates and interests con-
nected with a bankrupt into the Dis
trict Court of the United States as a
Court Of bankruptcy. And to confer
upon the District Courts the authority
to suspend all and every proceeding
elsewhere; and to command obedience
to their mandates, exclusive of all 9TH
er jurisdictions. BuS by the Bankrupt
act of the I'd Massiis 1867, they have
not done so.
This act does not authorize the Dis
trict Courts Of the United States to is
sue injunctiOns to State Courts, nor to
the actors or parties litigating before
them.
The act of 2d March 1893, prohibits
it; and this act is not repealed by the
bankrupt law, either in express terms
or by implication.
Courts of a State are independent
tribunals, not deriving their authority
from the same sovereign, and as regards
the District Court of the United States,
foreign tribunals everyway its equal,
and over which the District Court has
no supervisory power. The Bankrupt
! law does not change the relation of
these courts to each other.
The authority conferred by the 40th
section, to issue an injunction against
the bankrupt, and al other persons,
! has no reference 10 ,io State Courts,
and it is limitation of the sweeping
! provisions Of the first section.
1t was designed to Protect the prop
erty of party not yet declared bank
! rupt, until his bankruptcy has been
legally established.
| Liens, by the Bankrupt law, are held
sacred, and the creditor is expressly
protected by the 14th, 18th, and Goth
sections Of the act.
The Bankrupt's final certificate dis
charges his person and future acquisi-
tiOns but the lein creditor is entitled
to satisfaction out of the property sub
ject to lien.
M'CANDLEss, il feel the grave
responsibility which attaches to the
decision which isabOut to be announced.
In constituting new and untried stat
ute, and establishing the practice to be
observed in its proper administration,
there must necessarily be much diversi-
ty of opinion among both lawyers and
judges. The interests involved are
frequently SO large and the principles
so important, tFrar 1nSxtricable confu-
sion must result from an unsound in
depreciation Of the legislation of Con-
greSs. This bankrupt act, is, in my
Judgment, highly beneficial to both the
debtor and the creditor. 1t was d.
signed to relieve the one from oppres-
siVe liabilities which render him unfit
to contribute to the productive wealth
of the country and it affords to the
other an assurance that all the property
Of the debtor, except what from mo-
tives OF humanity he is permitted to
retain, shall be honestly devoted to the
payment of his debts. With a fraud
ulent debtor it is wisely and justly
stringent, t,-cOmpelling full discovery
and surrender Of his assets, for the ben
eft of his creditors under peril of i'm
priSOnment for contempt, which, in
the Courts of the United States, is a
penalty not to be disregarded.
The present is case upon creditors
petition to declare Hugh Campbell a
bankrupt. Numerous acts of bank
ruptcy have been assigned, all of which
are denied, and trial by jury award
ed. Many judgments Oflarge amount,
the validity ofWhich is not questioned,
have been entered in the Court of Com |
mon Pleas Of Armstrong COunly; and
they are all prior in date to the period
when the bankrupt law went into OPP
Grafton. Upon final process, a sale of
real estate by the Sheriff has been
made, and 500, $4,000 realized and
brought into Court for distribution.
Under these circumstances our extra |
ordinary power Of injunction was in
voked TO restrain not only the plain |
tiffs in these judgments, but the courts |
Of theState and theireXecutive officers, |
from further proceeding, with the de- /
sign to bring all tiis-Iroperty of the |
bankrupt into this Court, as a Court of
Bankruptcy, for division among all his
creditors. The injunction against the |
sheriff and the parties was granted, |
with leave, instanter, for a motion to |
dissolve, that we might ascertain
whether, under the bankrupt law, we
have the right to interfere with the
courts Of the State in the legitimate eX-
ercise of their functions.
After much reflection [ am satisfied
we have not, nor with the actors or par
ties litigating before them. The first
section of the act is wide in its scope,
and would seem to bring all parties, es-
tates and interests connected with the
bankrupt into d common Forum or CEN
ter, and to do so, it is cOntended, that
Congress, by implication, conferred up
on the District Courts of the United
States, the authority to suspend all and
every proceeding elsewhere, and to
command obedience to their mandates,
exclusive of all other Jurisdictions.
This, by virtue of the 9TH clause of the
Sth section Of the 1st article of the Con-
stltution Of the United States, granting
the power 'to establish uniform laws
on the subject Of bankruptcies through
out the United States" Congress had |