The New York herald., 1873-11-08

themselves 10 the amount due to them thereon by
saie OIL the coaterals given to secure IL. On the
zoth u september, 1879, the lenders demanded
from tne borrowers the payment OF the amounts
que on an OF the loans, but none OF them paid
"A petltlon Is now presented to this Court by
Blake Brothers Co., setting forth the above facts
ana further stating that they did not, at the time
t, Lions, Know or suspect or believe. and have not
been informed, that the borrowing firm or either
OF its members were or was insolvent or in con-
temptation OF insolvency, or that bankruptcy pro-
ceedings were contemplated. or could properly be
had by or against them; that they during all OF
negotiated. were IN good standing and credit;
that the petitioners supposed, and had good
solvent and Tree from embarrassment; that the
nrst meeting OF the creditors VIII not be held until
the l4th OF November, 1873; that the petitioners
have duly proved the said indebtedness as debt
with security, as above described, against the
estate OF the bankrnpts; and that they desire to
be necessary for such purpose, and reimburse
themselves therefrom for the amount OF said
Indebtedness, and desire that the value OF said
securities may be ascertained by sale to be made
in such manner as this Court may direct. The petit
TONERS pray that an order be made by this Court
authorizing and empowering them TO sell the said
securities, or so many and such parts OF them as
may be necessary to be sold, In order to reimburse
themselves the amount due TO them on count OF
said loans, and to make such sales at public auction
IN the city ofNew York, alter three days notice OF
the time and place by publication thereof in such
newspapers in the city as the Court may designate
for that purpose, and after such other notice
thereof and IN such manner in other respects as
the petition and OF a motion for the order prayed
for was served on the attorney Tor the bankrupts.
They did not appear on the motion. The first
meeting OF creditors not having been held no
assignee In bankruptcy has as yet been appointed
elected.
This is an application to the Court to direct a
sale o the property as to ascertain It's value, as
between the PLEDGES Oft and the estate OF the
bankrupts, in order to arrive at a basis or deter
mining whether the PLEDGES will remain creditors
OF the estate after deductng such value from their
debt, or whether such value will pay the debt and
a
After writing at considerable length upon the
subject the Judge winds up by stating that an
order may be entered that the petitioners may,
Notwithstanding the pendency OF these proceedings
sell in any manner authorized by the terms
OF their contracts with the bankrupts and by the
laws OF the State OF New York, all the stocks and
bonds remaining in their hands mentioned In their
petition, and may use and dispose Of the proceeds
OF the stocks and bonds so sold as If they were
their own subject, however, to- and reservlng the
right and power OF this Court to ascertain and
hquidate the liens and specific claims ol the peti-
tioners on said securities or the proceeds thereof
and to marshal and dispose OF such proceeds; but
the order must provide that 1t is not TO be con-
strued as a direction or as anecting any OF the
rights OF any assignee in bankruptcy herein, and
that 1t is made on condition that the petitioners
file in this Court within two days after the future
sale or any OF said securities sworn statement or
the particulars OF such sale.
]. IL. Choate Tor the petitioners.