, 1874-02-02
THE GREAT WESTERN.
That Telegraph Company Has a
Breathing Spell.


Tho decision Of Judge Dlodgott, adjudicating
tho Groat Western Telegraph Company bank-
r,,pt was reversed Saturday, by Judge Drltn-
monl. Tho petition Oil Which Tits ad1uaica'
tlon waB n,ado WAS Nlod OIL tho 10sh day OF
February, 1870, by John Clark Hilton. lilo scze
ont tl,oren Tint ho ID creditor to tho Company
to the amount OF oyor $4,000. Tho claim is OIL
soveral judgments obtained OH promtssory nosob
made by Geurge Il. Oils, Treasurer, 10 soma
Rcoye, and by him indorsod to David a. uaSe,
uul by Oago to petitioner. Hilton alleges NJ
aciH OF bankruptcy TINT the Company allo"ed
judgments to be rendered ngatnat thom ny de-
fault III favor Of the Commercial National Bank,
on which executions wore iHs1ot'' ot''.,,..
of bankruptcy, alld alleging that thoy had Lad
tho Judgments entered by default set aslde aiitl
ploau oltorod, aild tint, na to tho judumont by
default, tho power Of attorney Waa foam: a slhco
Otis, who gave It, vas not authorized. Tho Gaze
wnB tried, and Oh tho 2Gth day OF April the Com
pnny WAS adiudicated bankrupt.
a petition for roViow waa takon to the Clrcnlt
Court, md tho decision was rendered. Yesterday 1y
Judge Drumtnond, reversing tho opinion Of tho
Diatrict Court. THO Judge ronarscd TINT before
tho late decision Of tho Supreme Court OF tho
United stateB il, tho oasc OF Wilson against tho
Ene,ial,an v. Smith, It lad boon held that where
\ party was insolyont aud allowed judgnontHto to
be obtained ngainst him by default, without de-
tense, Buch an act waB suffering LIS property
10 DO takon in legal process, within tho meaning
mn act OF bankruptcy, But the rulo laid down
by Tint casc establishes tho reyorso proposition.
1t was Indispensable aleo III order TINT the
Judgments by confession be upheld that tho exc
cution Of the warrants Of attorney by which iadg-
n.onts we're confessed ehould bo clearly csta1-
llalaod as gyon, by tho proper authority. In
this .caso 1t was contonsod that tho
attaching OF tho zeal Of TIC corporation
ft0 NFitl1nCD
Of the lawful authority Tho tlceision q tho
Supreme Court Of this State in the TorwilIigor
case practically decided that the perAons pro-
If tho interests Of tho corporation, md tho proof
offered in tho Court below Of tho noa!
having been attached by duly authorized
officers wns not Buh]ciont. The Execv-
tive Committee, whose duties woro dotluod
by tho chartor, passca resolution up
proving tho execution Of cortain notes which
were isH,ted, uptsn Which judgments wo1o ulti-
matey obtained, but mado no atlusion to tho
warrants OF attorney.
Again, there being controversy in tho State
Courts aB to tho validity Of TUG Judgments
which were rendered, the Court below should
llave given n reasonable timc to contest the
vnlidity Of these Judgments before for,ecloslng
not III indoinito time, but q reasonable time,
aud should have permitted and required it to
contest theso matters III the stato Courts.
In regard to tho alleged Insolvency, tho cor,
On account of the peculinr condition of:itB prop
orty, it WAS difficult to say il 1t were absolutely
insolyen. But assuming tho validity Of tho
notes, thoro might bo 4 question as to whether
no,,-payn,ent thereof would bo m act OF hau1t-
ruptcv, the Company not being = merchant Or
tradcr. But it WINS not necessary to consider
this question. 1t is. better for tho in
tercsts OF tho petitioming creditor that the
Company should be permitted to prosecute itu
own affairs, rather tha,a be forced into bank-
ruptcy. Tie foundation Of those proceedings
being Of such o doubtful character, tho Court
did not fool disposed to decide the Company
bankrupt The adjudication would, therefore,
bo reversed, mud MI order bo made Of tho DiB-
tlict Court to permit tho Company to contest
the proceedings Of tho Stnto Courts and var
Ta1lts Of attorney.
This doos not dismiss the proceedings III bank
rptcy. bsst sets asislo tho adjudication. md al
lows tlse Company time to decide tho hults in tue
Circuit Court a;5s.inBt the1n, or .ho potisionIne
creditors can amend THOR petition, alleging now
grounds, aud obtain nil Adjudication in TINT way