The morning call., 1893-07-20
WHO is TO ACT?
The Affairs of the State
Investment.
THERE ARE TWO RECEIVERS.
Attorney General Hart Supports
Van ReynegOm, While Some OF
the Creditors Want McDade.

Matters in the insolvency proceedings
AGAINST the State Investment and lnsur-
ance Company are in a decided muddIe
inst now, as there is a fight going on to de-
termine who is TO take charge OF the prop
ertv and act as receiver-the Sherlff. ap-
nointed under the insolvency proceedings
before Judge Levy. or ex-Judge van hey-
negom, the receiver appointed by Judge
Hebbard al the request of Attorney-Gen-
eral Hart.
The case came up before Judge HE'D
bard yesterday afternoon. Attorney
Henry Eick hoff appeared in support OF the
receiver eX-Judge Sullivan appeared 1hr
the Sheriff, the attaching and petltlonlng
creditors were represented by attorneys
Rigbv and Harrison, while Fisher Ames
represented the company.
Eickhoff opened the proceedings by NOV
ing the court that the Sheriff be instructed
10 turn over to Van Reynegom as the ouly
appointed receiver all the property now 10
his possession belonging to the DanATups
concern. EickhOff maintained that van
Reyneg0m was 10 fact SherlH IN tue
court of equity, and held prior claim 10
that of Sheriff McDade. He said that the
suit brought by the people of Callto:nla.
represepted Dy Attorney General Hart,
was broader and had wider scope thah
the insolvency proceedings taken oeioIe
Judge Levy. Il was out OF the power OF
the Sheriff TO collect rents, etc, belonging
to the property; and. in fact, he prayed
tile court 10 anuul the insolvency proceed
ings under Judge Levy and to adhere TO
the original order made by Judge Heb
bard himself, where n receiver was ap-
pointed in accordance with the petition
and upon the showing of the Attorney
General.
On the other hand ex-Judge Sullivan
pointed out that the Sheriff was already In
possession and had been ever since the
first attachment was made in the early
part of last month, and he claimed that
the Sheriff was the only fit and proper
person To take charge OF the company's
affairs. Anyhow he thought that would
be the best way to settle matters for the
present, as he was of opinion that until
the proceedings in the order to show cause.
set for hearing August II, had come up
and all the facts in the case had been
fully heard aud discussed no official re-
ceiver should be appointed.
Rigby and Harrison differed in their
choice Of receiver. the former wanting
Van Reynegom and the latter the Sheriff.
This difference of opinion led to discussion
as to which of the two represented the
greater interest Rigby said Harrison did
not represent any creditors at all. while
Harrison made a similar retorI. Judge
HebOard cut the discussion short BY saw
ing lie supposed the whole question he
tore the court was the appointment of a
custodian 0f the cOmpany's property pend
ing the hearing set for August II.
At this Attorney Harrison raised an
objection. he said that rents were COM
lag IN from the State Investment Com
pany's building on Sansome street, and
that DELAYS were very prejudical to both
the attaching and petitlonlng creditors.
He suggested All earlier hearing of the
facts regarding the cOmpany's insolvency
Meanwhile- be said. no proceedings AIKEN
ny the AttorneyGeneral could possibly
lnvalldate the attachment proceedings.
Sullivan claimed that the rourt had no
jurisdiction to appoint receiver He
cited several cases and clauses in the
code to show that in all such matters the
Sheriff must be called upon to act, and No
one else This, he said, applied to both
the voluntary and involuntary insolvency.
t0r his part he was perfectly willing to
have an earlier date fixed for the full hear
ing of the facts id the case
Judge Hebbard suggested that the attor-
neys should agree upon a custodian ad
Iuterim. Speaking of the two proceeding gs,
he said there would be no conflict of iuris-
dictlon. as Judge Levy had assigned the
whole proceedings in the case to his court.
lie said that Judge Levy had spoken to
him that very morning on the subject. and
had told him that if he chose to set aside
the order OF adjudication, we'll and good,
and that in all ways he might &C: as he
thought best 1.-The question now is.''
said the Judge, shall l set aside the order
or nOt?"
There was fresh wrangling at this, and
the Judge saw there was no chance of an
agreement, so he suggested that the. pro-
ceedings set for August II should be reset
for Monday next All agreed to this ex-
cepting Eickhoff, who said that while he
represented the Acknowledgement in the
days proceedings he had not full power to
act in the matter.
Judge Hebbard, however, thought that
Eickhof would have plenty of time to
communicate with Attorney General Hart.
who is now in Humboldt County, between
then and Monday next, and he ordered
the case 10 be placed on next MONDAYS
calendar. Meanwhile the Sheriff is to re-
main In possession.