The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-01-23
ux.1Eo STATES OsTaIcr coua1-M BANKRUPTCY.


II uGIEo STATES DISTRICT couaT-lS BANKRUPTCY.
Importsar DecIsion OF Judge Blntchford on
tue appointment OF Asstxaees md the
Powers md Duties Of KegisIcrs-Tho Case
Of Register Fnch.
Yesterday morning Judge Dlatchford rendered tho
following important decision in tho Of J.. Ogden
Sinitn, which argued before the Court Satar-
day. e5msssa - 4a 4 ~ "a 4.e
Ihisis Of involuntary bankruptcy. which an
adjudication of bankruptcy was maio by tie Coart
she 18th OF December 1867. The order Of adjudication
referred the TO OF the registers in
bankruptcy Of tho Court TO take such proceed
tngs thereon a. arc required by the ~ act.
ON the day . warrant was issued which
appointed tine 18th day or January 1865 at the oce Of
regier day for the meeting the creditors
OF the prove their debts aud choose
made 70 me Court on tho par, Of Hses and Robbins
creditors OF the bankrupt VINO proved their debts INST
his to vacate much Of the order OF aojucaton
refers the 10 the register desfnated tho order
and 10 refer other register without prejudice
10 the proceedings already had in this case The
ground on which this application Is based Is that the
register has improperly nsrfercd in the matter Of tue
choice OF An assignee Of. tho estate OF the bankrupt
Uncontradcted testimony shows that several occa
sious, several different days, from 10
i've days prior 10 the dag appointed for the frat meeting
Of creditors and the choice Of assignee when
creditors attended person the office OF the register
for the purpose Of making oath before him to their
10 them printed blank OF Form No Is with the name
OF person inserted In u assignee OF the bankrupts
estate and requested them, either directly or through
clerk IN his office, sign such blank form and for
such person assignee II does not appear that such
person known 10 by any Of sucn creditors and
IL does appear that several OF them did not know
him or know of him. The registers reply to
these allegations consists in vndicaton Of his
mony the Htness OF the person designated and
attacks upon the motives Of the attorney Haiett
ever were motives OF tho Register and however
we'll nttsd for the position the assignee OF his choice
unwarrantsd and Improper The Register Is part Of the
court his duties VI judicial character, and his &C.
proach and above all suspicion Of interest partisan
ship. TIE fourth secton OF the Bankruptcy act pro-
vides that mo Register shall be attorney,
etner In or out OF court In any suit matter pending
IN bankruptcy in either the Circuit District Court OF
his district, nor in any appeal herefrom shall no be
executor administration, guardian, commissioner Ap-
psaiser dvidsr assignee Of upon any within
Sue jurisdiction OF either Of said Courts of Bankruptcy,
NOR DO interested IN the fees or eonnents arising from
either said trusisn provision indicates spirit
Of judicial imparsulity which the law expects will be
exhibited by every Register In tho discharge Of his I'M
porsut dutiss With the choice OF assignee by tho
creditors ne has notnug 70 do except TO preside N the
meeting at which the choice Is made Il IL not neces.
sary that he should approve or confirm the choice for
although suoh approval By the Register 10 appended TO
statute Tho election subject tho approval Of the
judge, and although II IL the duty OF the Register in
for his action thereon 70 make known any objection
which exists to approval Of the choice yet beyond
this the Register has nothing TO do with either the cleo
tiou appointment OF an assignee unless there 10
failure 10 choose or q non-acceptance by the person
chosen, and then, in certain cases. the Register can
assigpee. the policy Of the Bankruptcy act, clearly
IN hs provisions, 10 TO give 70 the creditors OF
. bankrupt The free deliberate, unbiased choice, In
she Erst instance OF the person who TO take the
assets and manage them rhis 10 feature which did
States and was adopted from the English system The
Importance Of this policy has pecn uniformly recog-
All slse,,ons OF s,s,specs by ercS,,ors unless some
thing vas placed before y 70 show that the CHOICE
was nos 2 proper one, u y especially, especially ncamoe ,r
nuence, either directly indirectly, tho choice Of
assignee by creditors The action OF Register should,
IN al things be That Of strict importantly, not only In
fact but IN appearance and he should not present the
scmbance Of having interest bias In favor OF or
against any particular assignee, any more than
OF being prcudced for against the bankrupt or for
or against any creditor, IN any proscedins ANY other
course viii lead u abuses 70 the suspicion OF
tnem aad viii impair thc useiulpess Of the registers
and derange the Harmonious working Of the system.
,emedy asked for Of trausferrirg ,hs case 70 an
other Register, were II not that II 10 manifest from
the anidas1 IN the matter ana from what transpred
In OMEN the argument OF the motion, that
will be judicious exercise OF discretion TO send tho
10 another Register This do without at all lnean
ing question the motives OF the Ros lister selecting
votes for assignee designated by him. do II be-
the creditors Who have made adavs Ia support
OF ths notion and The attorney tor the pelitioning
creditors ought be compelled by the Court. after
all that has TRANSFERRED 10 continue the proceedings Ia
ths before tho Register 10 whom u was referred
some amin srsion was made by the Register upon
fact The attorney for the petitonng creditors
him tue lOtn oil JAnuAry 1905 nouco
frg creditors protested against the proof of
any ca agaipst the Tour several credtors
naming them aud opposed their claims tho ground
were entitled either 10 prove their debts or
10 sor be eligible as assgnecs and requesting
iaat attorney might DO immedstciy notified n any
suen psrsons should tender their claims for proof
Tue notice was served In the exercise undoubted
right section ~ OF the act proyides that 'whsn
claim presented for proof before the election Of the
nssgpes the Judge snertains doubts OF It's validity
Of the reht OF the creditor 70 prove H. ana ~ OF
opinion that validity right oughfo DO nvesti-
gated by the assignee, he may postpone tue proof OF
the claim uuil the assignee Is chosen" Ruie NO.
81 ibis court gives 10 the Register the came power
OF p9sponng the proof Of eiain. The last clause
OF section ~ Of The Tor the mode OF inyest
EaiinR claim ufh view TO ia rejection 10 shall be
shown 20 os fornded fraud, liegaity or mistake.
The notice In question served the Register seems 10
have proper notice preliminary 20 the exhibition
20 the Register Of for tue exercise OF MS power
OF poEtponemeui In regard TO the claims specific
Discs,arges fa Baykruptcy.
The following discharges In bankruptcy 10 the SOUTH
disrict New York have bean gragted iron tho
1lih the l7b OF January Ralph G. Bacon, Nathan
u Burri, Jane sksIey, lohn II n la MAJ Edwerd
il Purdy, Lpalan Meyer, Wlian r. heunesssy,
Jossph Moore David n Sriugham, William q. LadJ.
James smtn and Charles v. Mccullough.
Petitions Piled Yesterday.
lrrold WOODWARD New York city, rctsrtsd TO Regis
Ter Fitch ltaac stadsker, New York cay referred 70
Resister Dayton. Jacob Cohen NsS York cay, referred
50 RsiaLer AIKEN.
cnr.T