, 1873-12-31
Decision in tho Case of tho Manu-
faoturers' National.
J1lgo Dlodgett Declares 1t Cannot
30 Put into Bankruptcy.
1.le' Recorder Of Deeds Appears In a
New Part.
8 TuE.Doat OBSERVATION-DISCLOSURES
Items.


pEols1on IN TIE MANuFAorunEns' NATIONAL
DANK cABA.
Judge Dlodgett Hnyo biz decision yostorday
morning on tile question Us to whether Nat1on-
II Bunk can bo put Into bankruptcy. A petition
vas flied by X. ]. Smi Il Go. against tho Man-
ufaaturors' National Dank. about six weeks ago.
and, as tho question had novor before nrlsen,
tho Judge decided to Aoar arguments OIL cach
sido buforo Lo granted tho usual r1tlo to show
ra,lso. The arguments occupied several days,
lud engaged some OF the bcst legal talont III tho
oity. Tho following abstract embraces tho main
points Of tho caso:
On tho 18th Of November, H. J. Smith 4 Co.
filed petition i'll bankruptcy, alleging thai they
were creditors Of the Manlfacturcrs' National
Bunk OF tais city, claiming that It lad commit
ted an net Of bankruptcy III susponding payment
OF It's cLccks anu other papor for period ot
foureoon days. aud usislng tho usual rule to SHOW
cause. Notice Of the implication waB sorvcd on
tie officers of tho bunk, and long arguments
wero heard on tho novel questions Involved.
Tho Inv for the government OF National Danks,
known us tho Currency act, WAS pulsed iu Juno,
18G4, md las ttlco been repeatedly nnloudnu.
Ia tho original act, ttill and apo provisions a1o
nude Tor kottlug tho airars uf these institu-
tious, maiuly by tho aid Of tho Federal coarts,
whou invoked by tho Comptroller Of tito Cur
ronoy. The lcading foalurea of tho systom
were securing tho circulating notes Of the banks
bv uledrinr bonds with tho United stutcs Treas.
1lru,, nuu tue redemption OF tie salilo by tho
i,ninrs r., tha ay1cnk uf lin nyr vniuo nj thar
stock and Tie amount invested III Blares Of tho
bauk: unu Dluclug them ,,u,lor tho surveillance
Of tho Comptroller, wlo had power to wlul up
Cougleay afterway,l passod tho Dapkruptcy
act. uuuer tho urDy1sioils nf Which Iii rnunlef
and iu,,1t-etuck cumuuu1es were ,urluIcl .ri,e
tliiri SECTION pruyitics tl1ak all nayIuo,,ts ami
frauduIeul assignments shull Io yo.d. whether
made by q cytupuny or n rorson. rho fury.
eighth hcctipu declares thut Ito wo,d pcI,nt,n
uleaus n corporation, Tuo third cluuss 1uulscn
It all act of bankruptcy whon auy Duuler hrls-
roudy 1,nyn.eut ot Ms cu1nutrrIal uapor fur
fourteen unya
Tho BANKRUPT Inv. yhic], was onactcd in 1877,
Is the latest EXPRESSION Of tlo Legislative viii
and It's Eouerat forms must bo held to repeal uil
Ccne,ul statutes INCONSISTENT with it, tl'he ,,ea-
tiou is: Ducs tho Bankrupt law supersedo the
Currency lnw in winding IN buuAiug ilstitu-
tiuuss There IL nu doubt Of tho souuGucss uf
tho general rulo of luw, that gouural statute
does nut comprehend I'LL tliucs 1uoll,uol under
it, and tueH not cuver thing sJJeo!ully Jroylt1vd
fUr unless thus provision is tut,c!4cl 4 thing il
not within tho letter nj Tho statute unless 10 i'll
tended by tho makers, aud geuoral law does
not ,epeai tue PROVISIONS Of u former one unless
Inconsistent wilh IT, Tho teru,s Ut a. general ]
law should not be applied to special subject
unlces it is absolutely uocosaary in order to giya
1t any iorco.
Tho Currency act gives tho powcr to wind IN
d bank for several causes, on tho occurrence ct
any OF which the Comptroller may al)poiut q
Neueiycr The money ruulizcd il pail to lin,
aud. after paying whit lB ule tho United States.
tho remainder goes 10 tho creditors. The hfty-
second section makes any transfers OF ussini-
nents .nado aftor the commission OF an act of
[us lycuey voia. Tho fur. y-oigllth section makes
It unlawful for bauh to truupact b,1e,uess nltor
nny such act, aud the tlfty-third provides that
npy violation OF the provisions Of tho net works
q forfeiture OF the franchises Of tho bunk. Src,
8poyides thus d bank may sue aud bo sued AZ
natural porgon,
ILuro has been no adjudications as to vhat
,oustjtuLen NJ act OF ipsoIyopcy but il soums IL,
Io any act indicating ,l1solyetcy. While tho
Currencv net dtot not nroy;e lar tho sncc,Hc
acta mny,fled lar III Tie lMnEr1,nt act vnt Il
urovidoa co,nplcto scheme for settuug tlo
aatfnirs nf T. National Bunk. The srIen,n piycs
no riunoo to M inrllyidl1nl creditor to trnw
l,anE into bankruptcy. but Conrrass nrohan>v
thoueht it wisor to live n1,cn nnthnritv tn IN
Comntrolior only. in ordor to ,,reseryo tia creat
InIs law cuutaluy amplo provisions for rnon,
,cina tLeac cu,1,nrn., ,ot,s NM, nrlnnsIor,n .;,ar
nitaiIs Wien uuable to pcrforu thcir null g fnnc-
hec o nFvi Mr Mo oens ~ hso
wound ~ Dy Receiver, most Uf them pilco ,s Lis
naususro nf Tia TInkr,,u1 law hat f'n",'ra., Iuo
I'D not niend to raneal tI,n nrernus f;u,'rHcr
act IL annnrcnt bocn1,ao III iva umcI1,,tnmv nrt1
sneojaI rsIa,ouco in nao In tbesc w;"1};,r.,n S'o
nroy,nions. md thoy ara t1cated m + in MI ri
tnrco + & cIonr III 1;o,rro.u n;J rat ;..u -
Tint there shonid ey,st two ro.I,rinnto law o,,I
that tl,o allnirs al tho banks shnnl1 In nfmnia-
kerol ,y tne tribunal that ti,at acnniroil cnnrrol
Thjs mjrht ne 70 il oucl, Ind rnua1 cnmnra.
houplyeIess, but Tic imuprtnut div ri nni,nr
tic lcders Of tic crcllfat1,,u nplca and t,r nI!,
forcug tle liability Of Stockholders ~ icft with
Arou.l Linn. gs the Sum o,no Tnn1t i,ns Ioc,n;,
SO even il tic B.uliyIlpt law nhonlI he iloid To-
amply, it could slyo u,iIy IN i1comploto ro,ncily
tLo lial,i!.ty OF tie stovAAo,uers. couII in
rcacLod only through llccc,yor. The DulNrnnt
Court claiu,s complete sovereignty, aud the tuct
thut any power should be aoaled it shows that
fordotl tho creditors Of i bankrupt bunk uldor
Tho bankrupt acs would bo 10 incoinpIoto. tint I
cannot tliiill Congress- intended to clutlo tho