, 1873-07-06
Judge Drunmond Renlantls the Case
to tho Jurisdiction OF Tho
District Court.
The Company to Petition Judge BIod.
gett to Set Aside The Bank"
ruptcy Adjudication.
al the Creditors to 10 Settled with Except
lllton...lIfs Status to Do Determined
BY tie Coarts.

His Honor Judge Drummond, sitting in tho
United Statoa Circuit Court, yeatorday morning
rofusod to allow tho motion to admit now tcsti-
1nony in tho record of tho petition for review Of
tho dociaion Of tho District Court, in Hilton V.
tho droa. Western Telegraph Company. Hav-
ing already, in tho numerous actions taken given
tle facts over and ovor again, 1t in not necessary
to repeat them.
Lowing out, therefore, tho woll-known facts
Of tho caao, AZ they havo beon 10 fre-
quently presented to the readers OF
rruE Tribune, His Honor in effect said that
.thero were two motions before tho court to bo
passed on. Tho question, however, substantial
ly was as to tho practice OF tho Circuit Court in
applications for tho hearing Of new evidence af-
uooting tho question Of bankruptcy 1t was
drought up by tho motion Of tho petitioner IN
this Court, for permission to add his nowly-dis-
coycred Testimony; and, in the second pace, 1t
camo up On the part Of tho petitioner in the DIG
trict Court in his motion to striko out all tcBti-
mony from Tho proceedings In this Court that
had not been brought bofore tho District Court.
.Therc wore two ways In which tho objects Of tho
petitioner in this Court might DO reached. Ono
WAS for tho petitioner In reyiew In this Court to
euspond proceedings hero until lo had an op-
portunity to present to tho District Court tho
uewly-discovered evidence. The Court held
that there WAS no doubt Of tho power OF tho
der In bankruptcy aud to hear new evidence
theroin and pointed out that tho proper step
to DO taken was frat TO submit such evldpnoe to
xhe District Court, and whon that was dono, Y
upon tho final order Of that Bourt they still
wished to come to this Court for review, tlicy
might then properly do 30, bringing their new
nyidonce along with them: ....,.
Again, although what tbs Court lad s.lggoHtod
appeared to be the preferable courae, there wus
'anotho1 mode Of doing it, II that WAS not adopt
.ed on proper showing in the Circuit Court,
where petition for review has been itleh u'tst
proceedings in review have taken place. tho pc
order on tho District Court requiring. it to pro-
coed to hear tho newly-discoyorel erldcnco.
II 1t WAS true, AZ it was contonded by Tho Pesi-
+ioner in roview IN this Court that The Company
soiSent. SOW na 'sa and able '' to % pay its ~ do1ts,
there was another method Of proce-
dure BY which tho petitioners could gain
their object. It was to enter INTO approved ar-
ing indebtedness, with tho exception Of tho
notes on which proceedings III bankruptcy we,o
brought, those In favor Of ]. @. Hilton, which,
it appeared, were given to Roove, IL carrying "!
State. in decreo, in Torwilligor V. the Company
Ind dcclarcd to 10 fraudulent. Thcs, notes
were contested, and, until their character lad
been established, tile defendants in tic bank
of proceedings in tltat Court on their
giving Hilton euitablo sccnrity for tho
amount of Buch contested claim. lila
Honor 1,ad already so ruled, iu o railroad CASE,
ut Indianapolis, where it waB decided TINT Lilo
.1ailroad company, being put into bankruptcy,
could sottlo all iss outstanding debts, except
tloso contested claims which tho proceedings
In bankruptcy were brought, and that aucll pro-
reodingR must stnnd In suspense until tho litga-
tion over tho contested claims Ind decided thu
puestion in dispute. III this caao, tho petition
Grs in review contested tho claims oil the ground
that they were not legitimate bora tltlo c.ainss
ngainst the Company, caa rrccrttlirg!
in bankruptcy might 10 Stayed n.'til s:'a:
question Lad boon decided. Ii Il wta sts-
rlded that the notes weso good. atnl Tie
bankruptcy decroo wos affirmed III tho D!1tr:c.
Court tlon it would bo tlnao onougl, 10 cc:;e 10
tho Circuit Court, in reviow; with their corapctn
record. II it waH decided that Tho notes were
bud, it was competent for tho District Court 10
open the decroo, and make another ordor.
The Court directol an order to bo entered thu.
The motion Of the petitioner in the Citc'1i;
Court to bo allowed to introduce new Testimony
be ovorruled, and the motion Of tho pctitono:
In tho District Court to strike ont CERTAIN po:.
tiona Of the petition in thig Court be sustained
An interview with the counsel FOR Tho ic'i
fioners in tho Circuit Court cl;cilol Ike H.,
that they hayo determined to u>i,''! -
couraes pointed out by His Honor. !: Ia ':,nt,
OF all the creditors will bo called ne:'. :.
The debts nominally arc believed 10 e':c:::
$4,000. but really to be Less than :5,0iD an.
thoy will be at once arranged for without tal
cu1fv