The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-25
THE RAILROAD CASE.
BOTH SIDES OF THE BANKRUPT CT
QUESTION.

SOId S1OHS Of IaH -SANhhO1 - W
QUESTION.
Conclusion OF Judge Masrath's Argu-
ment-Closing Argument for the Petit
tioners by Mr.. Corbin.
The bankruptcy proceedings upon the pc
tition of Daniel E. Scanned, of New York, In
re. the Greenville and Columbia Railroad
Company, were continued yesterday morning
in the United States District Court before
Judge Bryan; Messrs. D. T. Corbin and Geo.
D. Bryan appearing for the petitioner, Messrs.
A. G. Magrath and C. D. Melton and John 7.
Rhett, of Columbia, for the railroad company,
and Messrs. Porter & Conner, Slmonton d
Barker and Jos. D. Pope, OF Columbia, for
various creditors.
Mr.. Magrath continued his argument In op-
position to the petition fer a decree of bank
ruptcy. Having on the previous day discussed
the question of Jurisdiction, he applied himself
to the consideration of the specific acts Of
bankruptcy alleged. First, as to the alleged
insolvency of the company, he considered
carefully and thoroughly the arguments of his
predecessors upon this point. The bonded
1 debt of the company, as admitted, was 81 $685.
632. and upon that deot no one would pretend
that the road was insolvent But In addition
TO those bonds number of bonds, amounting
In round numbers to $1,000, 900, had been
unlawfully distracted from the safe ofthe CON-
pany, passed off by those who knew they had
no right to the use or possession OF them, and
were then in the hands of those who knew
they had no right to receive them. That
question could not be tried In that
court, and without the determination OF
that question by the court the court could
not decree the road bankrupt. He reviewed
the transactions between the former direction
OF the Greenvllle Road and Kimpton, the Con-
ttnental Telegraph Company and the CONNER
clal Warehouse Company, through which the
$1,000, 900 of bonds passed out Of the possess
sion of the company, in order to show that
that alleged debt of the company was suffi-
GENTLY tainted with evidence of fraud as to
cause the court to pause, In the exercise OF Its
discretion, before proceeding to assume juris-
dlction, even If the Jurisdiction were In its
power. Mr.. Magrath continued, saving that,
: even If the counsel for the petitioners had
shown the power of jurisdiction and the fact OF
insolvency, they were obliged stllf to show
that certain acts prohibited by the bankrupt
act had been done, because of the
doing of which the interference of the
court was demanded. To the allega-
tions. of specific acts of bankruptcy
he replied! First, that the company was not
. either merchant, banker, broker, manufac-
turer, trader or miner, because of the nom
payment of whose commercial paper bank
ruptcyis ordained; and, second, because the
,eeoupons, the non-payment of which was al
legged, was not commercial paper Within the
contemplation of the bankrupt act. 1t was
also alleged that certain claims against the
company had been paid since the alleged fact
of bankruptcy, and with the intent of giving
preference to certain creditors of the COM
pany over other creditors he replied that
those payments were made under the compul-
sion Of the law, were such as were not IN the
power of the company to refuse to do,
and were not done, as had been testi-
fed under oath by the president OF
company, with any intent to prefer
any certain creditors over any others. As to
the allegation that they had suffered" certain
levies to be made upon the compauy'a proper
ty by certain creditors, with an Intent to hin
der or delay the operation OF the bankrupt
law, he said that 1t was not In their power to
make any honest defence against the suits out
OF which those levies had resulted, and he
cited large number Of authorities to show
that It was not required of debtor to make
sham defence against an honest creditor su-
inc for the amount of his claim. and that 1t
was not compulsory upon the debtor, even II
insolvent, to place himself In voluntary bank
ruptcy to avoid the payment of his debt. Mr..
Msgrath, in concluding his argument, said
that upon those facts they rested, and BY the
settled decisions they had brought forward they
were content to abide. he had had no doubt,
Tftom the beginning Of the case, as to what
course the court would pursue. He did not
believe the adjudication asked for was con-
sistent with the temper of his Honor as
man, or with his selt-respect as judge. He
was not judicial Don Quixote to be tiltlag at
such windmill. His conservative temper In
the Interpretation of the bankrupt lsw had
been manifested at an early day, and to the
credit of the District Court of South Carolina,
and had since been vindicated by the Supreme
Court Of the United States. Even with that
august tribunal the defence of the Constitu-
ton of the United States was one that was
constantly recognized. Those venerable men
comprising that court, amid all the shifting
changes of the past few years, had always
planted themselves In the breach when the
constitution was attacked. and breasted the
waves that seemed to be beating against th nm.
To 70 Into that small room In Washing
ton where the deliberations of that court
we're held, to look upon the features OF the
men who In former days presided as they
look down from the paintings on the walls,
and then to look upon the men who in those
latter days sat there, and, few and weak as
they were, manfully withstood the power
sought to be brought against the constitution,
could not but remind the beholder OF that
touching story, familiar to all school.boys, Of
the venerable Roman senator, standing on
the forum in all the dignity of his age and
silver hairs, who dared to strike down the
barbarian who attempted to violate the