Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1873-05-22
.LEyA. GAZETTE 8 VIRGINIA ADVERTISER,
Decision in Bankruptcy by Judge
kiyes.


Rives.
HARRlSoNBURG, May l3.-An important
decision was rendered in the United States dis
trict court, sitting here, in bankruptcy, to-day.
1t was in the matter of FL. II. Propes, bank
rupt in bankruptcy for the bankrupt, F. H.
Bruce for the creditors Menefee & Borst.
The case came from Page county. Suit had
been brought for the sale Of land to satisfy
judgment liens and decree ordered for sale, and
commissioners for making sale appointed and
restraining order awarded to stay the sale.
The judge delivered an elaborate oral opin-
the bankrupt court. He referred the bar to
the case Of Christie, decided by Justice Joseph
Story, and reported in Sd Howard, (also in
18th Curtis's Condensed Reports,) He said a
comparison of the language of Justice Story
with that used in clauses of the bankrupt law
of March, 1867, showed that Congress had ip
tended to give such jurisdiction TO the bank
rupt courts as was claimed by Judge Story in
Christie's case. The act was not only an adop-
tion Of the principles announced by Judge Story
but, in sort, rejection OF the prciples laid
down by Justice Grier in the more recent case
OF Peck and Jenness, 7th Howard, III Curtis 3
Condensed Reports.)
1t was Judge Story's decision that the bank
elusive Jurisdiction of the bankrupts estate
wherever found aud In whatever state of lltiga-
ton, with power to terminate litigation in 9TH
er courts and TO collect, marshal aud admins
ter all assets. This power is necessarily ex
elusive, and must be exercised exclusively to
prevent vexatious aud expensive litigation.
Especially will this court refuse to permit
sales under DEGREES which have been rendered
after the bankrupt has been adjudicated bank.
rupt where he is therefore civiliter mortuS,
and his assignee has now been substituted in
his stead in the proceedings in the state court.
But the Judge said that notwithstanding
the law as laid down by Judge Story, yet the
l4th section seemed to contemplate the lltlga-
tiou Of questions affecting bankrupts estates by
the assignee, in authorizing that officer to
prosecute and defend all suits at law or in
equity" This gave the district court discre-
tion to allow litigation to proceed in the state
courts in the name OF the assignee, or not. lu
the exercise Of that discretion, the Judge stat
sd that be could not interfere with state courts
where the litigation had gone to sales and judg
ments in favor of purchase money, especially
where the bankrupt had been party consent
ing to such proceedings as was the fact ln
Jones case which he decided at Lynchburg.
ln the exercise Of the discretion stated the
Judge declared that he would be guided by the
comfy which should always subslst between
courts having the relation to each other of the
state and federal courts.
Counsel had referred to recent decision of
the supreme court Of the United States upon a
case from Georgia, in which the supreme court
had virtually sustained the decision of the
court Of appeals Of Virginia rendered the 18th
June last, to the effect that the homestead ex
emption allowed by State constitution could
not be set up against antecedent debts; being
in violation of the provision OF the constitution
Of the United States forbidding "a State from
passing any law impairing the obligation of a
contract" The judge expressed satisfaction
ut this decision; aud remarked that it was no
ticeable as deciding that the remedy existing
at the time of the contract is part of the con-
tract, and falls within contemplation of the
national constitution forbiddiug State from
mpairing that contract
But the Judge held that this decision of the
supreme court Of the United States only went
to deny the power ofa State to give retro
spective homestead exemption. 1t did not and
could not mpeach the power of Congress to
pass bankrupt law impairing the obligation
of contracts by giving retroactive homestead
exemptions; or in any other way, not in conflict
with the only limitation imposed upon Congress
in this matter by the national constitution
form. The Judge considered that the amen
datory bankrupt law of March Sd, 1878, was
uniform, as well as the laws of which it was
amcndatory, and therefore constitutional :
He held that it was the very essence of q
bankrupt law to impair the obligation of con-
tracts; and the fact that by giving homestead
as against pre-existing debts, it impaired the
obligation of contracts, was no argument against
the constitutionality of its bankrupt laws: The
decision Of the supreme court OF the United
o,ates IN the Georgia case went only to deny
.ae power OF state to pass retroactive home
stead exemption, and not of the power of Con
s.IS and has no bearing upon the acts OF June
''il II, lS'2 aud March 3rd, 1873.
A. Inc Judge said that this court had not been
tu disposed 10 the past to 60 very far in wrestling
from the state courts jurisdiction which had
peeo exercised by them; and he had especially
peen 10 the habit, where sheriff had made
actual levy upon personal property. Of refusing
.I " slop his sale OF the property. But he said
''a. 'he tendency now was everywhere to con-
T gTSntrate Jurisdiction in the bankrupt courts.
ne Judge referred the bar to the case of .ex
Rafte Mallory; from Iowa, revised by Justice
irleId where sale had been arrested by the
bankrupt court after levy by the sheriff and
10 the elaborate and able opinion delivered in
the case by the district judge aud fully adopted
anu approved by Judge Field. Judge RVes
inumated that he would feel bound hereafter
70 70 adopt the practice sanctioned by Judge
fieId.-Rich State journal.
BOARD OF VIslToRs-Th following named
gentlemen have been appointed Board of
Visitors to the Military Academy at West
folnt tor 1878: Rev. j. l.. 6. McKown, Hi
nnols; NJ. Russell Thayer, Pennsylvania; VIM.
!; Early, Virginia; Jas. q. McNlullin, Maine;
Henry B. Curtis, Ohio;A Y, Akerman, ,Georgia;
hev. A. l.. Chapin, d. D., Wisconsin, the
part of the Senate, John Sherman, Ohio; j.
W. Stevenson; Kentucky; on the part of the
House, John CoburD, Indiana; L. p Poland,
Vermont, and S. S. Marshall, Illinois.
Advioes from Western Tennessee are to the
effect that the condition Of the cotton crop in
that region is not encouraging. The cool rains