The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-09-03
OPINION OF HANFORD.
THE PROCEEDINGS HERE NOT 4
COLLATERAL ATTACK.
No Part OF the Road Being in Jenkins
Jurisdiction, He Cannot Control
the Entire Line.
HANFORD, District Judge:

HANFORD, District Judge:
The argument against entertaining the
present application, may all be arranged
under two heads:
'First-As TO the foreclosure OF the
mortgages on the Northern Pacific rail-
road, and whatever is incidental thereto.
including the receivership. The United
States circuit court for the Eastern district
OF Wisconsin is the court of primary jul
risdiction, and by the rule of comfy in
such matters, this court. instead of TAX
Ing original cognizance of a motion TO
change the personnel Of the receivership,
should send the parties to initiate proceed
ings for such change, to the court of pri-
MARI jurisdiction.
''Second-This application Is a collateral
attack upon a final judgment of a court
OF coordinate jurisdiction, which had COM
plete Jurisdiction of the parties, and of
the subject matter Other considerations
have been urged upon our attention. such
as the vast amount in the aggregate. of
the loss by depreciation OF the Northern
Pacific securities, which may result from
our decision, but the distinctively legal
grounds for rejecting the application of
the defendant company. for change of re-
ownership, are covered by the foregoing
propositions. l find that / can express my
individual views more conciSely by dis
cussing both propositions together. under
the general issue as 10 the jurisdiction and
duty OF this court
A Direct Proceeding.
This court is not called upon by the ap-
plication under consideration TO vacate or
modify any order or decree made by the
circuit court for the Eastern district of
Wisconsin. We are asked simply to re-
move from office receivers under ap-
pointment of this court, and TO appoint
others in their places, to serve as the re-
ceivers OF this court. and 10 exercise such
power as Il Is within the jurisdiction of
this court to confer The only direct effect
Of granting the application now made by
the defendant, viii be to strip from the
receivers now acting. such power as they
have become vested with by virtue of the
orders Of this court, and 10 confer the same
powers upon other individuals. Incidental
~ the effect may be. and probably will be-
far reaching, for such action will be a rec
ognition by this court of its duty TO ex-
ercise independently within the territorial
boundaries Of its jurisdiction, such powers
as have been By the laws OF the land con-
ferred upon it, and such as parties having
rights to be protected may see fit TO in
woke, and an assertion that the assump-
ton OF paramount authority over the
railroad and business transactions, in the
operation thereof by court located at a
distance from the situS Of It's operations.
Is contrary 10 sound principles of
government and unjustifahle. But conse-
Queuces do not change facts: the fact Of
the matter IS, this application is a direct
proceeding. relating entirely to matters
as to which all the parties to the record
must stand committed as having from the
inception of the case conceded that this
court has jurisdiction. The attack now
being made is not collateral, It is not d.
reCted against a final judgment
The second proposition above stated is
based upon false premises, and - untena-
bio for that reason. but II it were not so.
and this proceeding could he regarded rs
being purely an attack upon al adjudica-
ton 81 the circuit court for the Eastern
/ district of Wisconsin, finally determ.na-
tive ~ the particular questions, still the
defendant had the right 10 make an az
tack and this court is bound 70 entertain
H. because Of want Of jurisdiction. appar-
eut uDon the face Of the record. is the
ground upOn which the attack is made.
and on such grounds the right Of the par
ties to utigate IS not concluded ny any de-
cree Of the court whose jurisdiction IS
questioned
Vt has been assumed throughout the ar
gumont. and I am therefore justified in as
surling shat rs the jurisdiction Of the court
q Milwaukee over the entire subject mat
! te~ n the receivership % tho Northern Pa
c.hc railroad has never been challenged.
nor pat ~ the test Of an argument by ad-
verso Vart.es. as Il has been upon the ar
eument OF this motion. I feel greater free
DOM .n discussing the questions than 7
should Z the able judges # the Seventh
circuit. or any one o. thom. had ever been
called upon 10 define tne jurisdiction OF
that eoar, with reference u this receiver
saip.
The Case, in the Reginning.
In MS inception the present a1ministra-
tiou Of the Northern pac.fc Railroad Com
r.ny.s estate and business. through re-
I ceivers acting under appointment from
courts of thaucsry. Was a proceeding IN
/ rem. The creditors bin hlea hy Winston.
/ sheldon Co ana me Farmers
Loan and Trust COMPANY the am
~vsr o. The Northern Ta.ff- Eafl-
road Company. AMI all tho pa
ytrs alej in the criclnsI case. and the frs-
order 81 the court. appointing 1IesSrs
Pa-rr cakes ANA Rouse 10 be- receivers.
show that the primary object and purpose
/ of ths sl!t was TO place the railroad its
/ equipments lands ana all It's assets, INTO
tae actual and legal custody Of the court.
and 20 have rh= court assume control and
I under such control coutiuuo Us operations
/ as an active and gong concern. The
I plcadiugS raised TO issue between the
plaintiffs and the defendant: the biz
/ praycd for no relief which the defendant
! opposed. All the parties hal common
/ object. ana that was 20 shelter the prom
ertv from judicial writs and process :
} W.i'n i3rH aNtl1li'tEel WOULD % sued cut
hy creditors az the different courts having
( Jurisdiction within the numerous counties
/ in which parts % The road and It's prop
/ er;y arr situated. The only adverse par-
Ties ia she sense q persons having inter
! Cs's. rights or claims. liable n De dam
/ AGED invaded or pre5udlce1 by the pro
cecfin<S. order or decree In tina case. were
I creditors % The defendant. its employees.
/ and parties having contract relations with
g. who ARE nor named in the record and
/ not made parties 20 the snft otherv iss
| than as iu any processing purely in rern.
| in which any person having an interest