The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-03-05
BURLEIGH STAYS IN
IMPORTANT NORTHERN PACIFIC
..IEgBIVERsHIP DECISION.

Judges Gilbert and Hanford Deny the APP
piication of the Farmers Loan and
Trust Company for the Discharge of
BurIeigh and the Appointment of the
Milwaukee Receivers-Court Insists ON
the Expediency of Resident Receiver,
AmenabIe to That Court-Court has
Some Rights of its Own, Anyway.
Seattle. Wash, March "A. F. Bur-
leigh is still sole receiver of the North
ern aciic railroad for the states of
Washington, Idaho, Oregon and Mon
tana, comprising more than two-thirds
of the mileage of the system. So say
Judges Gilbert and Hanford of the fed
eral court in denying the application
of the Farmers Loan and Trust COM
pany to have Burleigh removed and Nc
Henry and Bigelow, as the receivers
appointed by Judge Jenkins at Mil
w.aukee, appointed in his stead. The
decision was handed down in the fed
eral court here this morning by Judge
Gilbert, Judge Hanford concurrinS,
The decision contains a keen thrust at
the eastern people who have sneered
at the authority Of the court here and
who. il is alleged. disobeyed Judge
Hanford's command to appear in court.
The decision is received here with gen
eraI qualification.
SOME RIGHTS OF ITS OWN.
The decision quotes the order of the
circuit justice declaring the Wisconsin
10, h Of
primary administration and says:
But this court reserves the right,
at any time, upon the application of
any person or persons interested, or
upon its own motion, TO make such or
ders and DEGREES as to ii shall seem
just for the protection of the creditors
of the railroad company residing with
in its jurisdiction.
1T is urged on behalf of the Farm
ers' Loan and Trust company that
the discharge of Burleigh by this court
and the appointment of McHenry and
Bigelow in his stead, are necessarily
involved in the conclusion arrived at in
said. order Of the circuit justice quoted
above; We do not so conStrue the terms
br the purpose Of the order. 1t declares
that the court at Milwaukee is the
court OF primary administration. 1t
implied IN the order, that the receiver
heretofore appointed by this court
must be discharged, or that the receiv-
FRS appointed by the court of primary
administration shall be substantiated
In his place. All the objects 10 be Sc
rured by the order may be obtained
by the retention of the present receiver
In our judgment the proper manage
ment of this property requires that it
be in the hands Of a receiver resident
within this circuit and amenable to
the orders Of the court thereof.
RESIDENT RECEIVER
I'm the order Of the circuit justice
the power of this court to do whatever
may be by the court deemed essential
for the protection Of the rights of the
creditors of the corporation residing
within the district for which this court
Is held, is expressly reserved and it is
our opinion that it is necessary, in or
der 10 secure the creditors the right to
commence and prosecute action against
the receivers in the courts of this state
or in this court. TO have for receiver a
person who will under all conditions
submit to the control of this court rec
ognizing its power to appoint and re-
move. We believe, therefore. that the
present application cannot be granted
without an absolute sacrifice on the
part of the court Of the powers and
prerogatives which belong to it, and
which are necessary for the protection
of the rights Of the people or TO invoke
its jurisdiction The rule of comfy
does not require Of a court exercising
ancillary jurisdiction any such abdica-
ton of IT'S discretionary powers. Nc
Henry and Bigelow, being nonresidents
and almost constantly absent, creditors
must, TO enforce any demand against
them, seek another forum, for If this
court cannot call the receivers 10 ac-
count for their conduct, it will be with
out power to compel them to appear
in the courts within this state in an
swer to any process. In view of past
experience. we are not willing 10 ap-
point as receivers persons who will not
recognize the power of the court TO con-
troll them in the administration Of their
trust.
The application of the complainant
will therefore be denied