The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-16
IMPORTANT DECISION N BANKRUPTCY.
The Boston, Hartford and Erie Railway Com.
pany-Question Of Priority Of Jurisdiction.


stated that the railroad company mad committed
acts OF bankruptcy. The petition PRAYED that the
company might be adjudcated bankrupt. James
Alden, another creditor OF tne company also pre-
sented on the Goth Of DECEMBER. 1870 q petition,
substantially the same as that Of Mr. Adams 70 the
United States District Court for the District Of Con-
necticut; and on the 3lst OF December, 1870, Mr.
Alden presented petition to the United States Dis
trlct Court Tor the Southern District OF New York.
praying the Court to adudge the Boston, Hartford
and Erie Railroad Company bankrupt. The com.
pany put in answers to these petitions and resisted
their applications.
While the petitions were pending Seth Adams
made application both In New York and Con-
necticu for leave to intervene and oppose the APP
plications which had been made In those districts
to throw the company into bankruptcy. On the
2Sth OF February, 1871, the company withdrew its
answer and objection In eacn OF said courts and
on the cd OF March, 1871 the company was adju-
dicated bankrupt IN Massachusetts, the District
Court OF which issued Its warrant to the Marshal Of
the district, in accordance with such adjudication
This decree was shown TO District Court OF Con-
necticut not to have been dismissed. The Circuit
Court thereupon proceeded upon the facts alleged
IN the petition. which were not disputed to direct
that all further proceedings In the District Court OF
Connecticut be stayed, that the District Court OF
Massachusetts might subsequently exercise ex
elusive jurisdiction tor The closing OF the
creditors OF the railroad company.
Inc similar petition OF Mr. Seth Adams was
trlct OF New York February rs, 1871, and two days
later that Court decided that Adams nau no stand
ing IN Court at that stage OF the case, prior to
adjudication OF bankruptcy, aud mat be not per-
united TO intervene 10 resist or stay the proceedings
pending IN this districts but the court, on the app-
cation 81 Mr. Adams COUNSEL permitted reargu-
ment OF the Q, and this heard Marcn 5, 1871.
Counsel for Adams, sustaining ais claim to inter
vene. read In evidence the decree the Massacnu-
sets District Court adjuulcating the railroad
company bankrupt Again Inc court refused to
all0w Adams TO intervene. Alter the company had
Withdrawn Its nswer to the petition OF Alden, an
order or decree adJudging tue company bankrupt
was delivered to the District Judge. ON Marcn ne
signed TINS decree. but retained 1t in his possession
until after the rearg umeEL without nOce to either
of parties or their attorneys or TO the Clerk OF
the, Court the fact OF such signing. Tue District
Judge endorsed upon tins decree tae words, "Flled
llon Of Seth Adams after the reargument the Dis
trict Judge made an announcement o. these facts
Ia open Court. and delivered the order adldicatng
the company bankrupt to counsel Tor alden, the
petltonlng creditor anu this was handed py him to
the Clerk Oi the Court upon the records Of which It
Under these circumstances Mr.. Seth Adams Pc
ttoned the Circuit Court Ior review and rever-
sal otthe proceedings III the District Court and for
stay OF all proceedings III bankruptcy against the
company III that Court.
Judge Woodruff yesterday, In the United States
Circuit Court, gave lengSnened decision IN the
proceedings IN mole than one ulsrict and the case
Is eminenty proper Tor the application OF tne gen.
dlction that when one has iirs obtained lurisdic-
ton o. the subject matter, and OF the parties other
ours s I na
and final disposition or the matter IN question.
All these these and, perhaps other IKE c con,
delivered on the review had IN Connect:
certain than tnat Congress-, III enactng the BANK
rupt law, did not contemplate any sucn cOmplica-
uon; and | deem II equally certain that nothing
In It's PROVISIONS produces any such necessary re;
suit The several district courts OF the United
States are not acting unaer authority derived from
separate systems ofaws; they are not charged with
duty to afford special protection TO the residents
stances lead TO CONNECT OF jurisdiction between TIL
bunals of different states and operate to secure
equal results among parties interested but residing
In different States. The district courts act by one
authority; they execute the same laws each IN the
administration OF the estate oil bankrupt WAL do
precisely what each Otner district court viii do.
governed by the same rules and to the same
end. In the opinion referred to the Bankrupt
law was examined and the general orders IN bank
ruptcy maze by the supreme Court were considered
to ascertain first, wheiner sucn proceedings must
necessarily. II begun, be continued In more than
district court; II not, then which district court
should be deemed to nave priority Of jurisdiction
and be permitted to go on and complete the adj
mlnislratlon; and, finally, II the bankrupt with
view to hinder and embarrass the Winning up Of
the affairs, stood by silently colludlng with one
or more VI tue parties, to produce such embarrass-
ment would not take any measures to prevent the
action of either Court, nor call to tie attention of
either the TACT that prior proceedings were pending
matter to the attention Of the Court and ask that
the proceedings subsequently commenced be
STAYED IN order to avoid Inc expense emnarrass
OF creditors and to the waste OF the 1und which
creditors have right to share The Court did not
affirm the broad proposition that whenever q
creditor filed petition against his debtor tor de-
cree declaring sucn debtor q bankrupt any other
creditor was at liberty and as Of course to appear
and claim right to oppose sucn adudicatlOn; but
1t was held that the Court was not numbered from
entertaining the application for leave to oppose by
rigid technical rules governing actions at law inter-
parties, and tnat cases might exist in winch 9
his intervention might properly be effective. IL
was accordingly held that, it appearing 70
petition Of Seth Adams, that he was
the petitlonng creditor. in the District
fled 2lst Of October 1870; that the petition
Connecticut was filed on tine 2sth Of December, 1870
sets had on the I'd OF March. 1871 decreed the
pany bankrupt, and Issued lis warrant to the mar
sha as required oy the act OF Congress the District
petitions OF the said Seth Adams and stayed Its FUR
ther proceeding. The only question which Is open
sets should be accorded, either as matter OF state
right or in conformity to the provisions OF courts OF
equity having Coordinate jurisdiction above re.
ierred TO, the same priority OF jurisdiction over the
District court for the southern district OF New YORK
which was yielded by the Court for Connecticut.
The Judge goes on to sav:-ln the progress OF
proceedings In bankruptcy and IN proceedings in
formal suits, both at and in equity 1t Is COM
mon practice for judge To receive the papers,
motion or on final hearing, Tor consideration. 1t
Is not to be held That If on such consideration he
should the first instance, In the privacy of his
chambers or In his library, set his hand to the
form OF an order Decree mis- power over the sub.
ject Is tpse JaCO gone and that act Is hnaL
The Judge says:-I no hesitation In saying thas
the draft OF an order, though signed, remaining ia
the sole possession ana knowledge OF the Judge.
whether for the purpose OF further consideration or
for any other reason Is subject 10 his control 1t Is
not final so as to conclude him, and until II Is In
some manner notified TO the Clerk Of the Court or
to one OF the parties, In sucn wise that
hts decision can properly be said to be promulgated
or announced 1t concludes no One The result Is tnat
there Is nothing In the case presented upon this
review which withdraws 1t from the operation OF
the decision heretofore made, as above stated, IN
the district OF Connecticut. have no doubt OF the
power of the Court to make sucn order herein as
may best secure all Interests, and, II the iacs
occurring not admitted, to make q proper ln-
quiry to ascertain them. IL will be SUFFICIENT to re: