The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1874-05-21
LETTER FROM RICHMOND.
CHIEF JUSTICE WATrE-THE T. S. COURTS
-IMPoRTANr BANKRUPT DECISIONS.

CHIEF JUSTICE WA1TE-THE Z. S. COURTS
IMPORTANT BANKRUPT DECISIONS.
RICHMOND VA, May, 1874.
Ed. Talley Tirginian Once more we have
sitting in Richmond. Many great and impor-
tant questions have been argued and decided,
and much Of the enviosis speculation of those
interested therein has been allayed. No single
question is fraught at the present time with
such import to our people as the operation of
the United States Bankrupt Act- and the Viz
gilia Homestead Exemption which is now COW
cred by it. Indeed what With the contrary ac-
ton OF the Va. Court OF Appeals, OF Congress,
of Judges Underwood and Rives, Hughes, (the
| author of the amendatory Act OF March g.
| 1879 Bond, it has been for years in an unset
! tied and chaotic condition. The advent of our
new Chief Justice was expected to solve all
doubts, and, amid these conflicting decisions.
to settle finally the construction of these Acts.
For several days he sat upon the bench of
the Circuit Court with Judge. Bond, patiently
hearing argument after argument from the
learned counsels from all parts of the Common
wealth who crowded the room. Among those
present from a distance were noticed Hon. l..
H. Chandler, Ex-Governor Wells, Judge Lowe
Of Iowa, Register EARLY, Hon. Thos. S. Flour
noy, Elisha Barksdale, Wade Of Montgomery,
Kirkpatrick Of Lynchburg. Judges Morton
and Neeson, Of the city, also made able argu-
mants.
The case Of III. Fl. Wells, ST., Us. Rush Bur-
CESS collector of internal revenue, being a suit
for recovery of income tax paid by the plaintiff
upon his salary as Governor Of Virginia by
military appointment, was submitted to the
court in writing and trial by jury Waived
Judgment was given for the plaintiff in the sum
Of S36339, with interest on .93 from Au-
gust, 1862 and upon the balance from Sd All
gust, 1870.
In the matter of White & Lovelace, bank
rupts, on a petition for supervision, it was Or
dared: that the order made by the District
Court for the Eastern District on the It'll OF
March, 1873, directing Armistead Barksdale,
Jr., assignee of William White and James S.
Lovelace, to pay to each of said bankrupts one
half Of the fund remaining ia his hands as as
signee Of White 6 Lovelace. and that Armis-
funds in his hands according to the order of
: the District Court Of February 18th, 1873, among
the petitioning creditors-Granville III. Owen,
Ell. Ii. Hurt, administrator Of James r. Writ,
John c. Williams, Charles II. Cabaniss trustee,
Samuel Ayras, and E. W. Ayres- to
their respective rights.
The argument Of Messrs. Flournoy and
Blrkslale for the as ;ignee, like that of Judge
Morton in the succeeding case, was chiefly con-
fined to opposing the supervisory jurisdiction
Of the court. The decision Of the Chief Justice
, upon this point was clear and emphatic, saying
that it was not necessary, us claimed, that a
creditor must have proved his claim before the
Register as provided by law to have standing
i'll the court, but that any one, even though he
be an outside party to the proceedings in the
Bankruptcy court, whose rights or interests
, were imperilled or affected, could invoke the
supervision of the Circuit Court. Judge Waite
also reflected severely III his decision upon id
verse action OF the assignee to the creditors
whose interests it was his duty to protect
: On Saturday, also, the Chief Justice deliver
ed an important decision, involving the RIGHTS
Of lien creditors, and the duties of assignees. il
! The matter of John T. Taliaferro, bankrupt III
Bankruptcy, on petition for supervision
In this case the petitioners had filed their bill
John r. Taiaferro to the payment of their j,lde.
meflts that were liens thereon. The suit haC
proceeded so far that an account of liens hac
been taken and confirmed, and an order enter
ed for the sale OF Taliaferro's land Before the
order could be executed. Taliafarro became :
, bankrupt on his own petition. His assignee
L. L. Lewis, filed his petition asking the Dis
trlct Court to decree sale of the bankrupt's
lands free of liens, and to transfer the liens tC
the fund in court. The usual order was made
directing the creditors to be convened at the
office OF the register OH certain day to show
cause against the sale. Notice was given by
: publication in a newspaper and BY summons
: sent through the mail.
The register on the 10Th of February, 1874
reported to the District Court that, in his opin-
ion, no sufficient cause had been shown why
the assignee should not sell the land There
upon the District Court entered an order di
recting the assignee to sell the lands free O.
liens. Certain lien creditors, some of whom
: had proved their debts in bankruptcy, and one
Of whom had not proved, filed their petition in
volling the supervisory jurisdiction Of the Cir
cult Court to set aside the order Of sale made
: February 18th, 1874. The petitioners alleged
i that they and other lien creditors had on The
day appointed appeared at the registers offict
and filed written objections to the proposed
!. sale. They asked that the order Of the Dis
: trct Court be reversed on the ground that tina
/. court had no authority to make such an orde
i | on the Informal and summary proceedings tina
L had been had in the case; that there would bs
no surplus to come into the hands of the assig
nee for the benefit OF the general creditors; anl
F that even if there should be any after paying
: liens there was difficulty in the assignee
v asserting his rights in the suit in the Stat,
court.
!. The assignee answered the petition, stating
= that it was TRUE that some objections had beef
+ made to the sale, but that as he was Informed
n no written objections had been filed at tn,
meeting Of creditors at the registers office tina
g he had just sold the land for over $4,000, which
: he considered a fair price, and he thought th
interest Of the creditors would be promoted b,
e retaining the fund in the bankrupt court
q Chief Justice Waite in rendering the decision
n of the court, commented on the facts of th
case, saying. that the rights of the lien coult
not be bound by the Informal and summar,
J. proceedings had in this case; that the Distric
. Court should have made no order without hav
Il ing the information requisite to satisfy tn
: court of the proprety of sale; that when th
> order of sale was made it was evident that tn
q District Court had no accurate information
- about the condition of the property or the a
10 mount of liens upon it; that it was the duty O
). the signee to have informed the court; tina
y If the proceedings in the bankrupt court did no
furnish the necessary information he shout
have extended his Investigations to the Stat
,s court; that so far from putting the court il