Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-12-24
WASHINGTON.
ANOTHER TELEGRAPH LINE ABB
S0RBED.
Reducing the Working Force at the
CharleStOwn Navy Yard.
Proceedings Instituted Against Sheriff
Brennan,
.
DiSOrdeTly Demonstration Of Cincin-
natl WOrkingmen.
Supreme Court Decision in a Bank.
70. ruptcy Case. .. vi
Opinion Of Attorney .GeneraI williams ON
the VIrgInius Affair.
WAsHINGToN. D. c. .


WASHINGTON, D. c., Dec. 10.
! a circular issued by the Secretary of the
Treasury says that holders may exchange reg
| istered or coupon bonds Of 1858 for new five
per cents at par
A call is being numerously signed by MEM
bers of Congress headed by representative Nc
Nulta, Of lllinoiG, ard representative Harris, of
| Virginia, looking to a union of the members of
| the Northwest and the South, for the purpose
| of uniting these sections on the question of
| cheap transportation from the west to the At
| lantic sea-board. A meeting will be held in
| the hall of the House of Representatives on the
| first Saturday after tho recess.
| WAsHINGToN, Dec. PIT has been known
| for some time that the Spanish Government has
submitted evidence with regard TO the steamer
! Nlrgnius and her claim to have the flag of the
| United States, and that the President had sub
| mitted this evidence to the Attorney General
| for his opinion thereon 1t seems now TO be
| understood in official circles that the Attorney,
| General has given the opinion that the vessel
! had forfeited the right TO bear the flag of the
United States, and that at the time of her cap
| ture she was carrying it without right and inn
properly.
Judge Williams, opinion covers column.
He argues that the Nirgnius' papers were OBJ
tanned by false prctenses, and that the title to
Marion Fowler, VIM. Ramsey, and John
Whitlock, convicted year ago as kuklux,
have been pardoned.
Important Decision by the Supreme Court.
The Supreme Court to-day rendered. the fol-
lowing important decision:
No 94.-Wilson, assignee in bankruptcy of
Vanderhoof Bros, VS.. City Bank of St Paul
Certificate of division from the Circuit Court for
Minnesota In this cause Vanderhoof Bros,
owing the bank, suffered their entire stock of
goods to be seized on execution, on a judgment
by default obtained against them by the bank
and thus, as alleged, fraudulenty preferred the
bank over their other creditors, against the pro-
visions of the bankrupt act, and the assignee
sought to have the proceeds of the sale on exc
cution applied on the claims of all the creditors,
On these facts the following question arose on
which the Court divided, and these were certified
to this Court for answer: First, whether or not
on intent on the part of the firm, to suffer their
property to be taken on execution, with intent
to give preference to the bank or with intent
to defeat or delay the operation of the bankrupt
act, can be inferred from the facts stated?
Second, whether, under the facts, the bank in
their proceedings bad reasonable cause to be-
lieve that a fraud on the bankrupt law was in
tended by the firm, and third, whether, under
the circumstances, the bank obtained, by the
execution, valid lien on the goods as against
the assignee in bankruptcy. In their opinion
the Court say that something more than the
passive non-resstance of an insolvent debter to
regular Judicial proceedings in which a judy
ment and execution are had when the debt is |
duo and he is without just defense to the action
it necessary to show prefermen. of a creditor
or a defeat or delay the operation of the bank
rupt act.
That the fact that this debtor under such cir
cumstances does not file n petition in bank |
ruptcy is not sufficient evidence of such pre-
ference or desire to defeat the operation Of the |
act That though the judgment creditor in such |
case may know the insolvent condition of the |
debtor, his levy and seizure are not void under |
the circumstances nor any violation of the bank |
rupt law. That lien thus obtained by him |
will not be displeased by subsequent proceed |
lngs IN bankruptcy, against the debtor though |
within four months of the filing of the bill. |
These propositions require the question certified |
to be answered, the first two in the negative and |
thethrd in the affirmative. This decision over
rules or largely qualities what was said by Mr.. |
Justice Clifford in delivering the opinion of the |
Court in Buchanan VS.. Smith at the last term.
About Congressional Action on the Bank.
rupt Law.
Senator Hitchcock has addressed the follow
ing letter to Senator Edwards, Chairman of the |
Committee on the Judiciary:
UMrEp STATES ssYATE CHAMBER,
" ash ugton, ID, o.. Dec ~ iS7}
DEAR SIX Regrettlng the failure of the SEN
ate TO act, prior to the holiday recess upon the
bill repeating the bankrupt law so far ut least,
as to wipe out the present oppressive feature of
failure will aggravate financial suffering and
add others to the already long list of victims, |
desire TO obtain your opinion of the
feasibility of so amending the bankrupt law as
to make the repeal Ofthe oppressive features re.
troactlYe, and also your opinion of the proba-
billty OF the early passage of such amendments
Your reputation as lawyer and your posi-
tisn as chairman of the Senate Judiciary Com
mittee will give weight to your opinion, and
such opinion, if afirmstively given, upon each
of the propositions above named, will. think,
go far to relieve public anxiety and prevent
useless and oppressive litigation.
Faithfully yours, Z. W. HITCHCOCK.
To Hon. Geo. F. Edmunds, Chairman Senate
Judiciary Committee
Senator Edwards replied as follow:
UkITkD SrArEs SENATE CHAMBER.
Washington. u. T., Dec. -. 1873
DEAR SRI have received your note of the
10Th inst, and say in reply that do not profess
10 speak for any person but myself of course,
but so speaking | have no hesitation in saying
that any provision that may be made respecting
the forcing of debtor into involuntary bank
ruptcy and the proceedings thereupon will, so
far AS my voice goes, be made retrOactivein such
a way that no person will gain anythngby any |
oppressive steps towards debtors. Pending the
consideration of the question, ms all such mat
tiers relate to remedies which Congress may take
away altogetherH il pleases, there will be no
iTnDrOpfiety i'm ma NO nm W So UrOVieion which