The New York herald., 1871-02-14
BANKRUPTCY.
Tke Boston, Hartford and Erie Railroad
COmpnny-Importnnt Decision.

Tke Boston, Hartford and Erie Railroad
COmDnuy-Important Decision.
Judge Blatchford has just deciaed an important
question. As already stated in our columns. the
affairs Of the Boston, Hartford and Erie Railroad
Company have been thrown into bankruptcy. On
Saturday motion was made Ill Tie United States
District Court on the part OF certain receivers TO
modify an injunction so as to enable them to pro-
ceed with their duties and do the neces-
sary acts towards the completion OF a part
Of the road belonging to tie company
These receivers appointed under the
law OF the State before proceedings In bankruptcy
had been commenced against the company; and
Judge Blatchtord holds that he interfere
with them under the circumstances, unless they do
some act that would come within the scope OF the
bankruptcy law. He therefore orders modification
OF the Injunction in the sought for. He has
given judgment on a very nice point. 1t will be
thus seen that while the learned Judge in all leg-
mate occasions. uphods the authority Of the federal
courts, he is not slow TO recognize the rights which
may be fairly claimed under the state law. The
decision win be found below IN full.
DECISION.
IN the Matter or James Alden, Petitioner, rs the
Boston, Hartford and Erie Railroad Conepasy,
alleged Bankrup,s.-Judge Blatchford has rendered
the following decision in the above enutled suit
As the property in the hands OF the receivers Of
the company must be regarded as beng In the pos
session OF the several STATE courts which appointed
such receivers, and az such receivers appointed
and entered on their duties as such, and took pos
session OF the railroads and other property OF the
company before these proceedings in bank
courts were IN possession OF such rail
roads and other property when these pro-
ceedings IN bankruptcy were commenced, and
have continued IN possession OF the same ever
slnce II Is not lor this Court interfere with such
possession at least until the title ol such receivers
is npeached Tor some cause for which IL Is lmpeac
able under the Bankruptcy act; nor IL 1t for this
Court, before such title Is thns mpeached to inter-
fere with the management or control OF such rail-
roads and other property by such state courts, by
such receivers under the orders OF state
AS to the dscontlnuance OF Inc suit In
New York, in which the receivers were ap-
pointed, II such dsconiinuance has the effect
to revoke the appointment and authority of
the receivers under the proceedings in that
suit, then the injunction OF this Court does not re-
strain them from deing anything which they are
dong by virtue oil such appointment and such In
junction need not be vacated or modified. II tue
dscontinuance OF such suit does null any
ceedngs IN such suit, and they are still acting
receivers under the appointment made in the pro-
ceedngs IN such suit they must be regarded as so
acting on behalf OF the court Ia which suit pend
ing ana as It's agents as TO property in Its custody
Notwithstanding the suit is discontinued With
these views, It Is proper that Injunction hereto
fore issued herein, on the Sd OF January 1871 be
far modified that the making and entering by
the receivers into the contract and the CIV
ing by them OF the securities authorized by the
supreme judicial Court OF Massachusetts, made on
the 23d OF December 1870 shall not be deemed or
taken to be violation or contempt OF such inunc
ton, and that In all other respects such Injunction
be continued In force.
+. II. owen for the receivers; W. E. Curtis for
Alden
Proofs of Claim.
In the Matter or WtlfGn WIZARD ana Joseph Mtu.
,card, Bdnc7upts.-Judge Blatchford has rendered
decision In THIS case; but It involves no question
OF law: 1t merely settles the price which the bank
rupts were TO pay for certain articles supplied to
them by creditors. The Judge states that the prayer
Of the petition, strike out the proof OF claim Of
smith Garvin, Is denied with COSTS and the claim
Ia allowed at the amount proved.
y. II. Coudert for the bankrupt: G.. W. Lord for
Smith Il Garvin.