The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-02
UNITED STATES CIRCUIT cuBsy.

A Declrisn or the Dissricr Court I'm Bank.
rSpscy Reversed On ADpeai-Tke Lscss
Standi Of a hallway Csmpanv.
Before Judge woodruff.
In the Matter OF the Alabama and Chattanooga
Railroad Company. an alleged bankrupr.-Ihls
oase nus just been decided by Judge woodruff on
appeal from decision In the District Court BY
Judge Batcnford. 1t Is case Of disputed jursdic.
t,on. On the petition OF creditor the respondent,
the railroad comrany referred TO, was cited TO ap.
pear ,ne District Court for the Southern District
q New York to show cause why 1t should not he
declared bankrupt. Inc petition alleges that the
railroad company mad ITS principal once
IN New York, and oid the ordinary bust;
property IN that STATE. rne COMPANY put In pea
thas The southern district Of New DIRK mad no uris
dlcion In TIE case. Judge Blachford ruled out this
plea, and made an oruer adjudica:ing the company
bankrupts. Tnereupon an appeal vas mad 10 the
Circuit Court Judge Woodruff makes review OF
the wdole case at very great Ienath. lie holds that
o railroad COM any Incorporated by the laws Of q
State Tor constructing, MAINTAINING and Operating
q railroad cannot he proceeded against In bank
rup,cy IN District court without q state States
where Its railroad Is. or 10 ~ DC, Lut
it0r charging an act oil bankruptcy Allegations
and proof That suca company kept an Office In such
tie petition, where Its officers acied, Board OF
Directors met, and where II contracted debts, made
loans, purchases ana payments, do not give such
Court Jurfsulctl0n. carrying on 0usiness' wunin
the meaning the eleventh section VI the Bankrupt
law, as applied 10 bankrupt corporation, does not
mean the cOnuuct OF such TRANSACTIONS as merely
Collateral or incidental TO tue purpose ior which tue
corporation Is created whether they are conducted
tinuousiy Kept Tor Inc purpose Tnc business OF a
rallrvad company, IN The sense OF the act can only
be Carried on where the railroad is or Is to be, con.
structed. maintained and operated. Hence the
tllct Court OF the United stat for the soul ern
district Of New ork has NO jurisdiction to ad,udss
oucn petItlon Dy credt or,
1he Judge, In closing MS dec,slon, says:-.In
am OF OPINION that, In reference to railroad corpo-
ration created ny the State OF Alabama for the
building. MAINTAINING and operating ran.
act winch subjects II 70 proceedings In
BANKRUPTCY IN TINS district ls not reasonable,
not required by the lane uage OF the statute anu not
according 10 It's mention. do not iab TO see mat
the contrary may be plauslbly argued, as IN TACT It
cr rS Hern b"s Sc corporao issl cannot remove
10 district. IL cannot In THIS dls let carry on
the business or which u was created. II can only
out suIerancc, do here such collateral or incl
denial thing as are not us substantive business
but only aids thereto or which facilitates Us accom-
plIshnent. 1t follows that the objection 10 tho
juIsdIcton OF the District Court Tor the Southern
district Of New DIRK should nave been sustained
ana the petli,on OF The creditor diam sed."
ordered that the adjudication declaring the COM
pany bankrupt be reversed accordingly.
The isstnie niadaae Jasnel.
Before Jndge Shipman.
the further hearing OF the case OF George Wash.
ingIon Dowen vs.. Nelson Chase was resumed yes
terday. Shortly alter the sitting Of the court Judge
shipman rendered has decision upon tho question
raised In the previous session as to whether the
plainnn could give nearssy evidence Of MS pedi-
gree. 90 lar as 1t reIated TO declarations Of MAJOR
Bailou, wne he the plaintifD resided In the family
OF that gentleman at Providence, II. |. The Judge
helo tna, before proof OF THIS character could be
glven, u would nrst We necessary 10 establish the
lact that abood-rclat0nsnip excited between major
bolvu and TIE Plaintiff he. ore Tue Qter Was per.
nitted 70 testify ~ 10 decaraGons made by tn6
MAJor to hun.
TINS ruling goes to sustain the view urged bS Nj.