Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1871-09-28
FOUR STATES, FORTY LAWYERS AND A
THOUSAND CREDITORS.
After the Assets of Bankrupt Railroad.
A Field Day in Court.

Il EIelu UdI III COuTt'
| In the DAILY CHRONICLE of the Goth
inst, we gave the only report of the con-
tents of the petition of Seth Hopkins d
| Co., and Benz. f. Emmerson, creditors,
| &C., seeking to have the Alabama and
Chattanooga Railroad Company declared
bankrupt. The creditors alleged five acts
| of bankruptcy on the part of the road, and
upon it Hon. Connolly f. Trigg, q. S. Dis
| trict Judge, entered rule fixing the 26th
| inst. as the day on which the petition
should be heard. The Court being other
wise engaged on the 18th, the hearing did
not come off until yesterday.
THE WAR OF THE CREDITORS.
The petitioning creditors appeared by
Judge S. f. Rice, of Alabama, and Tom
linson Fort, of Chattanooga The Alabama
and Chattanooga Road appeared through
| Mr.. Eakin. The State of Alabama through
Col. John Baxter, of this city, Col. V. S.
Murphy and General Clanton. An innu-
merable number of other creditors appear
ed through Messrs. Magre, Wood, ct al.
The fist contest upon the reading of the
creditors petition was when the State
of Alabama, through the petition of
Colonel Murphy, appeared and asked
for delay. Judge Rice resisted this earn
estly on the ground that the State was not
petition alleged that the District Court of
Alabama had original and prior jurisdic-
ton of the case because q creditors petit
ton had been filed in Montgomery some
weeks ago asking for an adjudication of
bankruptcy against the Alabama and
Chattanooga Road. The bankrupt law
provides that the court first obtaining jul
risdictiOn must prosecute the case to fin
al hearing. Judge Busted, having OBJ
tanned this prior jurisdiction, Judge Trigg
could not take cognizance of the case at
all.
1t was furthermore insisted by Coils. Bax-
ter and Murphy that the road had no DOM
icil in this district, and, therefore, the
court could not entertain the case.
The petition of Col. Murphy alleged
that, because of the absence of the Clerk
and Deputy Clerk of the District Court at
Montgomery, he could not produce record
evidence of the fact that the alleged bank
ruptcy proceedings had been instituted at
Montgomery, and they, therefore, asked
delay to offer the proof. Judge Rice per
contra insisted that the Alabama and
Chattanooga road had such a residence in
the district as the law contemplated.
and that this was the proper place for the
bankruptcy proceedings. He furthermore
claimed that no proceedings in fact had
been instituted at Montgomery, for there
was no clerk there to file the petition. He
asked, also, that if the adjudication was to
be delayed to give the State of Alabama
or creditors an opportunity to resist bank
ruptcy it ought to be brief, for the credi-
tors asking for their rights in bankruptcy
had long been delayed.
Mr.. Eakin appeared for the Alabama
and Chattanooga Road and said practically
that he would not resist bankruptcy.
MI
chile remarks. He said he thought the
State of Alabama showed good grounds
for delay. If, as it alleged, prior proceed
ings were pending before Judge Busted,
he could not entertain this case at all. If,
as alleged, second case had been begun
here through collision and for the purpose
of defeating Judge Busteed's jurisdiction.
he should not allow the parties to come in
to his court. If these proceedings were
prior, his duty was plain. AS soon as
satisfied that he had jurisdiction and that
the petitiOning creditors were within the
requirements of the law, he should adjudi-
cate the Bankruptcy, take possession of
the road, and distribute its assets exactly
as the law provided. The fact that States
were creditors and had large claims made
no difference. The humblest creditor had
the same rights as Sovereign State in his
court.
He would give all parties a reasonable
time for preparation. He would fix two
weeks from to-day-the 18th of October
for the final hearing.
The petitioning creditors then asked and
obtained leave to amend their petition.
The court house was crowded during the
hearing, and the spectators were interest
ed in the earnest and able efforts of coun-
sci and in their repartee, which was at
times vuite pungent.