, 1874-04-10
THE NATIONAL LIFE.
This Insurance Company Ad.
Judged Bankrupt. l.,
Tho Receiver Appointed by tho State
Court VIII Go Out.
Powers Of the Bankrupt Court
Fully Sustained.

'
Fully Sustained.
Opinion by Judge Bloigott.
A decision wns rendered on tho motion, for q
now trial In bankruptcy Of tho National Life In
suranco Company, yesterday morning, by Judge
Blodgott The Judge first stated
TIE FACTS:
That petition WAS llod against tho Company
on tho 14th Of February, 1871, eottng up tho
non-pnymont Of n doath-loss for about el,00O;
and that tho potltion also shows that on tho
18th Of December 1873, Bill was tlod In tho
Circuit Court OF Cook County, by tho Attorney
General. for the purpose OF winding up tho af-
faira Of tue Company. md distributing it's aH-
aots ratab1y, pursuant to tho act Of the
donoral Assembly Of March Ii, 1860. In
TINT suit dccreo was subsequently
mado appointing Kirk Hnnea Receiver, with
authorityto take possession OF all tho assets Of
tho Company and divide tho aarno among its
creditors and tloso entitled thulrto. The no-
coiver has taken full possoBaion Of the assets
ard property Of tho Company In pursuance OF
auch decree, and ia proceeding to cxocuto tho
decree and mandate Of sald court wherefore ro-
sponaent subnsta that this court hns no iurieili O.
tion to adjudgo respondent bankrupt Tbls
auB~er brings before the court for construction
tho net Of Congresa passed on tho 18th OF Fob
ruary. 1873, amendatory Of tho Bankrupt net.
ACQUIRING 5uR1sp1CrloN NJ sTArE COURT,
1t is claimed that, tho Htato court having
acquired jurisdiction Of tho debtor and its as
sets, under tho laws Of this State providing for
winding up ita affairs and distributing Its asae ts,
rom to narntinn ~ ta 11cGp.s te oeotol
lawns vi ~ rJaIstn T. - ~. so paI4upb ih", hna
rn,,rta 0 NoA - WIZ "'Au' " WIZ o'A%o
nrronv rur .,,rsn,,v,r
odnea 20 Tue pansaso n Of tn5 tha
nendcncv ~ 1rooaau;naa @ ~ th s.o. non tnas 'no
pJJ:y pJ'is':ty - paoooeua5e ~ sno 9tAtu courts 10
t;n1' d;5 not ,ro1nt ~ " ~ eorPora.
m hsn1!g 1u ~ On proper ease mne
no,anan,, I,asoii IL 1ae Alo1en'4o'a INSURANCE
ooA'e""S' r,,n Uae1en, = ,s!'.,. ~. 49,
r., rroo+,,,, IL ,,en',Iiex " r. anE III ;; AGr
=" ~ po'a,tA!' r.'s ~ ~ ~ 1oAo"h
oto9 r .o ss anat cre
c ~ ~ 'iu Ky , aH "nose pusoss ts car
also any INSURANCE coanY no create rhohnr III ~
business shall 10 carried on In such Stato or mt hnt
had proceedings duly commenced againat auah cor
rornton or company before tho courts of suc State
toe tno purnose OF wnang " the atiara Of such cor
a,monn us rs LUZ ~ aV1amg ~ asaets 1naoiJ
ou3tlca thcreto. nrior to nroc1adinas hnrfmS
been commenced against a,ich corporotfnn
company uildoE tho Bankrupt laws Of tho United
States, Any order made, that shall bo made, by such
court agreeaby to the State lew for the ratabe dis
1ro9on or payment o. anY dividend o. assns 70 the
staa cnrt rs,npn oe. o wo hufa u
Possession Or contro Of he assSs Of suc corporat,on
or con,uany ahnll bo deemed valid Observation-Disclosures
proceedings Ii bankruptcy may have beoa commenced
aud DO peadng against such corporation company,
WHAT IT MEANS.
It will ha aeen that it doea not soy, In case Of
nrocoodings In State courts, tho baukrupt court
shall not take Jurisdiction. It doduces that ali
orders made by the Htato court agrooably to tho
State la,y for tho ratabo distribution Or payment
Of dividends or assets. while a1,ch gtate court
shall remaiu actually or conAtitutionalIy in Dos.
session OF aesots, shall bo doou1od valid. The
phrase, while tito State court, by its Raoelyor,
is in possession Of aasets seems to imply that
tho Stato court may bo divestod OF possession OF
somo time by tho proceedings n bankruptcy,
and the language Of tho act only says that tho
orders Of tho atato court for tho payment Of dy-
idenas, while 10 in posaeasion, shall be valid.
That is to soy, tho court tn bankruptcy shall
not set aside tho orders and docroes of the 6tnto
court. lud begin tho administration OF the estate
do noyo, but shal1 take hold wlore the State
court leaves Oft, Or whara it flnda tho dohtor at
tho time Of I'D judication.
BANKRUPT COURT NOT DEPRIVED OF FowEn.
It seems very clear to me that it Congress-
had intended to diyeat tho bankrupt courls OF
jurisdiction ovor this clasA OF debtors it would