The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-02-21
ANSWERS TO THE ABOVE.

this letter, remain,
Yours truly, ". 1oDDlS.
ANSWERS TO THE ABOVE.
lat. The bankrupt law Of the United
States. in language alike emphatic and
comprehensive, confers upon the district
courts as courts in bankruptcy powers OIL
INNS, without limit. In section LIST 1t is
provided "that the jurisdiction OF said
ronr,s shall extend to all cases and con-
irorersies arising between the bankrupt
and any creditor or creditors who shall
claim anu debt or demand under the bank
,untcy: to the collection Of all the assets
Of the bankrupt; to the entertainment ana
foundation of the lisns and other specific
claims thereon: to the adjustment OF the
various prioritieS and conflicting interests
of all parties to the marshalling and dis
nosition Of the different tunds and assets,
so os to secure the rights of all parties and
duo distribution of the assets among an
rho creditors and to all acts, matters, and
things. to be done under and in virtue OF
the bankruptcy, until the final distribution
and settlement of the estate of the bank
rupt and the close of the proceedings IN
bankruptcy"
I'd. The authorities in support OF these
powers conferred, and the mode Of exer-
cisng them by the courts, are numerous. In
particular: .judqe Blatchford, inre CHASER,
i.B. R. 73, held THAT district courts had
original jurisdiction in all matters and pro-
ceedngs in bankruptcy, and that that
jurisdiction extends to all acts, matters, and
Minqs, to be done under and in virtue OF
the bankruptcy" The jurisdiction OF said
courts sitting as courts in bankruptcy ls
Superior and exclusive in all matters arising
under the statute. The estate surrendered
is placed in the custody of the court 30 Sit
ting in bankruptcy, and the officer (oS-
Siynee) appointed to manage 1t Is account
able to the court appointing him, and to that
court alone. No State court has juftSa'c-
ton in or can ,oiMdrdoo the property sur
rendered, or determine IN any degree me
manner of its disposition. In re Barrow
re Loeb, Simon & Co. re Winter, l, b. Il.
1875: in re Schnepf, 6, I. h. K. 2l4; IN re
Bowie, l, 3. r. 1867
Sd. It has also been held that the COM
mencement of proceedings in bankruptcy
transfers to the district court the Jurlsdlc-
t;on over the bankrupt, his estate, and al
q,nrties and questions connected Herewith,
and operates as SuperSededS of al pro-
cess in the hands of the sheriff OF State
court. and as On injunction against all other
proceedings than such as may thereupon be
had under the authority Of the district
court, until the question of bankruptcy
shall be disposed Of. clones rs. Leach ct a.,
B. R., l65 Pennington Us. Sale, Pie
Ian ct a. :, l B. r., 1919
4th. The filing of q petition in bank
ruptcy at once brings the property OF the
insolvent into the bankruptcy court, and
places il in its custody and under its protec-
ton as fully as if actually brought into the
visible presence Of the court. Being IN the
custody of the court, no other court can,
rithoH tie permission Of the court IN
Bankruptcy, interfere acith 1t, and so to in
terfere is a contempt of the bankrupt court.
(Inre Vogcl, B. R., 13S; IN re Peoples
Mail Steamship Company, Is. r., 40; an
re Kerosene Oil Company, B. r., l64; $.
C. on appeal, d. R., 81 Brock & Terrell,
2B.R., 100; in re Wallace. 2 Is. R., 52.)
9TH. The court has the power, on the ap-.
plication of the assignee, to order the sale oil
encountered property, free from encum-
hrances, transferring the liens from the pro-
perty the fund realized from it's sale- I'm
re T. r. Stewart, B. r., AZ m re Barrow,
re Loeb. Simm & Co., re Winter, 3. r., l25
Metal Works, 8 B. R., 49,. in re Salmons,
b. r., 49, in re Alabama and Florida Rail:
road Company / 3. r., 100; Delight d
I.R. R., 214.)
9th. Liens upon the property of bank
rupt, so long us the property is in the pos
session of the court, or its officer the assignee,
can only be enforced in the district court
e Iox,1 T., er
Peoples Mail Steamship Company, B. R.,
40; Daris rs. Carpenter ct al, 3. r.,
1875; Jones d Leach ct a., B. r., lG5
in re Vogel, i. r., 1875; Luckerman d
Franktin do. S. Inst. ct al, c. L. n,
so; in re Kerosene Oil Company, B. R.,
1854; on appeal S. c., 8. R., 81 +; in re
Rosenberg, 8 B. r., $50
7th. A secured creditor may apply to the
district court to have the incumbered pro-
perry Of bankrupt sold and the proceeds
applied pro tanto towards the payment of
his debts, but this application cannot be
made until he has duly proved has claim.
Togrant permission for sale without proof
would be assuming the existence OF facts
which may never be made to appear; for it
cannot otherwise be known that creditor
has any debt due him, or, if he has, that
the property is properly held as security
for the said debt. In point of fact, to grant
such IN order without proof would be to
assume as proved the right upon which the
order is by the bankrupt oct made to de-
pend. I'm re Stewart, B: R., AZ; in re
Bigelow ct al, B. B., 1856; DariS Us. Car
penter ct al, 2 B. R., 1875; IN re Ruehle, 2
b. R., IT'S; in re Bridgman, ! B. r., SO !;
in re Winn, B. r., l3l; in re Rosenberg,
3 B. r., 80. -.
sth. A creditor of bankrupt holding
the security of deed of trust with power
Of sale in third party as trustee mast
prove his debt as creditor holding secu-
rity and obtain the permission Of the court
to have the security sold, If lie makes q
sale without this permission the court will,
upon the application of the assignee, set
aside the sale. I'm re Salmons, 2 B. B., 10;
Davis d Carpenter, 2 3. R., 1875; in re Ro-
senberg, B. r., $50
9th. All sales of property belonging to
the estates of bankrupts made by holders
of deeds of trust, mortgages, OF Judgment
liens, are unlawful unless made by permits
sion Of the court after due notice Of such