The morning call., 1893-08-23
Van Reynegom to Act as
Receiver
FOR THE STATE INVESTMENT
Judge Hebbard Intends to Punish
Attorney Harrison for Con-
tempt of Court.

Investment aud Insurance Company, in
which he supported the proceedings origin
ally taken at the instance of Attorney
General Hart. and confirmed judge Van
Reynegom in his position as receiver.
1t had been made known that the de-
cision would be rendered yesterday, and
the whole squadron Of attorneys engaged
in the case were present to listen to the
Judges ruling. Attorneys Sullivan and
Harrison and Fisher Ames were present.
hoping in their respective interests that
the Insolvency proceedings taken before
Judge Levy might stand. and that Sheriff
McDade might be put In possession, while
Attorney Eickhoff represented the People
Of the State of California and Attorney
General Hart.
Judge Hebbard, in his decision. recited
the circumstances under which the action
was brought, and stated that the sole Ques-
tlon before the court was upon the author
ity of the court to appoint a receiver and
thus wind up the affairs OF the corpora
ton in a manner other than that provided
for In the lnsOlvent act, within the juris-
dctlOn Of which defendants claimed them
selves 10 be primarily and exclusively sub
lect. To this effect the decision in the
Famous French bank case was read, in
which it was decided that q court of equity,
a. such, had no Jurisdiction over corporate
bodies for the purpose of TeStralng their
operations or winding up their concerns,
but it was not found that any such power
had been exercised in the absence of a tat
ute comforting the jurisdiction. And such
Jurisdiction was conferred by section 600
of the Political Code.
Other authorities were quoted TO show
that AttOrney-General Hart had the right
to bring the action, and it was shown that
the statute of the State plainly authorized
the court TO make the appointment of a
receiver in such cases. in favor of private
persons against insolvent corporations;
land our statute is directed especially
against insurance companies In the condi-
ton In which the State Investment aud
Insurance Company now is" And Judge
Hebbard, referring to the conflict between
the insolvency proceedings and the pro-
ceedings in the AttOrney-GeneraPs case,
said: TIE case If the People VS.. Seneca
Lake Grape and Wine Company directly
holds that the pendency of proceedings in
insolvency Of a corporation is no bar TO
proceeding by the Attorney General, in the
name Of the people, TO dissolve the cOrpO-
ration. although the Insolvency proceed
lngs were prior in point of time.
The insolvency proceedings will not
preclude the corporation from again re-
suming business. whereas a decree of dis
solution in this case will not only settle its
affairs so far as its creditors are concerned,
but will also satisfy the penalty which il
has incurred OV reason OF the violation of
its contract with the Stately the forfeit
ure of its charter and the winding up Of
its affairs completely. The Incorporation
here admits its insolvency-the only oh
ject sought in those proceedings 1t has
no right TO complain, as its admission is
fully accepted by the people in this action
And the present action by the Attorney
General is the broader action, embracing
all of the objects of the insovent act and
superseding that act: abrogating it so far
as insurance companies are concerned, and
a II a Of ba d
fendant corporation"
In conclusion, Judge Hebbard decided
that the court had full jurisdiction in the
matter and full authority to appoint n re-
ceiyer, ana therefore a decree would be
entered against the defendant company
as prayed for. AS to the appoin :ment of
receiver the court held that the Sheriff
was not entitled TO the appointment more
than another. as OF absolute right, and
that +. w. Van Reynegom, recently APP
pointed receiver was a competent person
in every way, and his appointment would
De confirmed, under bonds of $4,000.
Before concluding his decision, however,
Judge HebbaTd gave his opinion of Attor-
new Harrison in the following terms:
The appointment of a temporary re-
ceiVer and the Issuance of a restraining or
der in this case was of date July 13, 1898,
and prior to the adjudication in insolvency
OF the corporation in another depart
ment of the court, but one attor-
ert Harrison, Esq, with full knowledge
of such orders, nevertheless, on the 14th
day of July, 1898, nOtwiths tanding the
caution Of the Ju1ge of the in
solvency department that he ought
not to diSobey any order of the
court. proceeded, to use his own language,
to take chances on that; entirely ig-
nored said orders and procured the adju-
dication despite them. The chances so
taken are like most chances taken in viO-
lating orders of court, which cast upon the
officer so taking them the reflection that
he has violated his professional oath, in
vOlved his client 10 uEwaTranted litigation
and useless expense, and sometimes. in
CURED personally the judicial penalties
provided for in such cases."
There was silence for a moment and
then MIR. Harrison rose and stated to Tie
court that he had never used such terms
or meant any such disrespect to the court.
Let me read from the record" WAS the
sole reply the Judge vOuchsafed, aud he
proceeded to read from the reporters
transcript Of the proceedings in insolvency
taken before Judge Levy, wherein Har-
rison is ted TO have told the Judge that
''he would take all chances and all re-
sponslblity" in setting Judge deb6ard's
ruling at defiance; and speaking of the in
junction Harrison had told Attorney Ruef
10 put the papers in his pocket"
Harrison again rose and persisted that
the reporters tran script was wrong. They
just grasp at what you say and put down
what they like, he said
Il shall stand by the record, Mr.. Harri-
son" was Judge Hebbard's chilling reply.
''Is Dir. Ruef here?"
Attorney Rigby Informed the court that
Attorney Ruef was uaavoidably absent
well. Mr.. Rigby, / instruct you to tell
Mr.. Ruef TO draw up an affidavit. recting
all that passed before Judge Levy, and
upon which Mr.. Harrison may be cited for
contempt If court. | am determined that
the dignj;y of my department at least of
the Superior Court shall be upheld at all
cost"
Awestricken and silent, the attorneys
filed out OF court, while Eickh hoff ehuckled
and thought how well he had represented
the Acknowledgement