The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-12-20
rAe oa,,.en.' savings NBaak.

in Charleston, Thursday, the case OF j.
L. Watson vs. the Citizens' Savings
Bank, was heard by Judge Bond. It
will be remembered that on the 22l Of
November last. John L. Watson, Trea-
surer of York County, fled complaint
before Judge Carpenter, OF the Fifth
Circuit Court, at Columbia, alleging
that the Citizens Savings Bank had sas-
pended payment, was insolvent, and
had rsfusel to pay its checks. He,
! therefore. prayed that the officers Of the
bank should BIZ compelled to render an
account of it's funds, md rest raiurd from
the exercise Of its corporate rights, and
that receiver be appointed to admins
ter its assets for the benefit of it's credit
ors. Upon hearing the complaint,
Judge Carpenter Immediately issued an
order, calling upon the detendant- to
cember. why the injunction should not
prayed for. On tho 1st of December,
! ing in the State Court, the Citizens
Savings Bank. pursuant to resolution
adopted by meeting of it's Btockhuld-
ers, filed in the United States District
Court petition in bankruptcy, praying
thai the bank be adjadged bankrupt.
The decree was made by Judge Bryan,
who issued an order compelling the
surrender of all the property and assets
Of the bank to E. al. Seabrook, Regis
trar in Bankruptcy, to keep until the
appointment OF an assignes. On the
3d Of December, the defendants filed a
return to the order OF Judge Carpenter,
denying tue jurisdiction OF the State
Court, and averring that the bank had
been adjudged BANKRUPT in the L lited
States District Court. Upon hearing
this return, Judge Carpenter decided
that the State Court had jurisdiction,
that it had exercised Jurisdiction. and
that its order was valid and binding,
and that its jurisdiction was not ons,ed
by the decree OF bankruptcy. The in
Junction was made permanent. On the
10th Of December, tue bank filed petit
tion in the United States District Court,
asking an injunction against Watson
and all other persons. restruining them
from prosecuting my action in the State
Court. This injunction was granted
upon an er pdrte hearing. The plain.
tiff. theieupon filed their petition in the
United States Circuit Court, claiming
that the Jurisdiction il the case properly
belonged to the State Circuit Court, and
asking the court to review tho decisiou
made by the United Suites District
Judge, aud to set aside or revise mud re-.
scind the order made by him. The pc
titioners were represented by Mr.. c. D.
Melton, Mr. j. Nj. Baxter, Mr.. ". H.
Tlescot and Mr.. A. G. Magrath, of
counsel. Messrs. Pope and McAIaster
appeared for tho bank. and Col J. H.
Rion and Mr.. J. HI. Bryan for certain
creditors of the bank.
The papers in the case were read by
Mr.. Trescot, who also opened the argu-
ment for the petitioners. He said that
the petition asked for dissolution of
the orler Of Injunction, aud contended
| that the Bankrupt Court had no author
ity to issue an Injunction, except up to
tho time Of the adjudication in bank
ruptcy. He also argued that, suit hav-
ing been commenced in the State Court
previous to the commencement of the
proceedings IN bankruptcy. under the
amendment to the bankrupt law of
1878, the Case should remain in the
State Court. und. that court having as
su med the jurisdiction. it was not COM
petent for the Bankrupt Court to inter.
fere.
Mr.. j. NJ. Baxter. OF counsel for the
petitioners, followed. The main point,
he said, was az to the jurisdiction OF
the case, whether the District Court, sit.
ting as court Of bankruptcy, or the
Court of Common Pleas, in the exercise
Of its equity functions, had Jurisdiction
in the case. The insolvency OF the de-
feu,lant was admitted. because it had
avowel its insolvency by its petition in
bankruptcy. He contended, therefore,
that thc State Court, having assumed
Jurisdiction of the matter, this court
would not oust it, but leave the admins
/ tration Of the assets in the court where
tho proceedings were commenced. The
defendunts had perfect right to aues-
ton the jurisdiction of tho State Court,
but it should be done in the forum Of
the court in which tile proceedings be-
gan. The Bankrupt Court would en-
join creditor who was rushing in the
State Court to establish his own claim
only. but i'll this case the proceedings
III the Stute Court we're for the same
purpose as that sought to bo effected by
the proceedings III the Bankrupt Court,
viz: tho fair and equitable administra-
tion of the nssets of tho bank. The PC
ttioners, therefore, asked that the whole
case be rem lntlcd to the State Court.
where tho lepOsitors Ind first alpcteI 10