The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-05

ern Pacific Railroad Company, the cir
cult court of the United States for the
eastern district of Wisconsin be regarded
as the court of primary administration,
and that the proceedings in this court
will be ancillary in their character end
in aid of the proceedings in the court OF
primary administration. but this court re-
serves the right. at any time. upon the
application of any person or persons IN
terested, or upon its own motion, TO make
such orders and DEGREES as TO 1t shall
seem just for the protection of the cred
itors of the railroad company residing
within its jurisdiction
1.-The Northern Pacific Railroad Company
appears and opposes the application of the
Farmers Loan & Trust Company TO re-
move the receiver, and contends that said
order of the circuit justice was made in
pursuance 10 an agreement between the
parties to this suit, whereby there was
submitted 10 said circuit Justice the de-
termination of the question whether or
not the circuit court of the United States
for the eastern district Of Wisconsin
should be regarded the court of primary
administration in this suit. and that in the
same agreement ii was further stipulated
that in case said court should be so held
to be the court of primary administration.
there should be appointed by all the
courts having jurisdiction over the subject
matter of the suit, four receivers, to wit:
The said McHenry and Bigelow. together
with the said Burleigh and one Galloway.
and said corporation defendant thereupon
requests the appointment of said four re-
ceivers SO named by the agreement Of the
parties to the suit
ut is urged on behalf of the Farmers
Loan a. Trust Company that the discharge
of Burleigh by this court. and the APP
pointment of MeTienry and Bigelow in his
stead. are necessarily involved in the con-
clusion arrived at in said order of the CIR
cult justice quoted above; we do not so
construe the terms or the purport of the
order II declares that the court at Nil
waukee is the court of primary admins
tration 1t follows therefore that the gen
eral orders for the management and con-
troll of the railroad property shall issue
from that court. and that the final decree
Of foreclosure shall be entered in that
court and that the other courts wherein
the property of the railroad company lies.
shall be courts OF secondary administra-
ton. II does not follow. however. and 1t
is not implied in the order. that the re-
ceIver heretofore appointed by this court
must be discharged, or that the receivers
appointed by the court of primary admin
istrafion shall be substituted in his PLACE.
All the objects 20 be secured by the order
may be obtained by the retention Of the
the entire lire OF the railroad belonging 10
the corporation defendant lies within the
Jurisdiction OF the Ninth circuit and is
now in charge of the receiver appointed
by this court. In our judgment the proper
management OF this property requires that
II be in the hands OF a receiver resident
within this circuit and amenahle to the
orders Of the courts thereof. The fact
that from the second day Of October last.
when the receiver was appointed, 10 the
present time, the property has been Ear-
moniously and advantageously operated
under a divided recsivershIp affords proof
that the same results can be attained in
the future and is evidence that no dis
advantage VIII result from continuing the
same method OF administration The ad-
usin!stration Of the property By this court,
AMI by the other courts Of the Ninth cir
cuit VII not be the less anciIlary in its
character from the fact that the recsiver
heretofore appointed shall Be left in
charge OF the property over which he has
heretofore had control.
"In the order OF the circuit justice, the
power OF this court 10 do wha tever may
be by the court deemed essential for the
protection % the rights Of creditors OF the
corporation residing within the district FOR
which this court is held IS expressly re-
served. ard IL Is our opinion that IL is neces-
sary, in order TO secure 70 creditors the
right 20 commence and prosecute actions
against the receivers in the courts % this
state, or In this court. 10 have for receiver
A person who Viii under all conditions sub
nit TO the coutrol Of this court, recognizing
its ROVER 10 appoint and remove. II is a
fundamental principle that the pose 20
appoint in the absence Of express restr1c-
lions, includes the power 70 remove in
cumhents OF an office. The application now
made % this court 90 appoint Msssrs- Nc
Henry and Bigelow TO be receivers should.
by Implication. admit that the court may
remove them But the history Of this case
proves that the party making the aqplica-
ton, on the advice Of its counsel, disputes
the power OF this court 20 remove from Of
nee receivers originally appointed By the
circuit court for the Eastern district Of
Wisconsin. and We ulflst understand from
the application. IS made. that u ts assumed
tast this court cannot exercise discretion.
but - obligated 10 name Aessrs- McHenEy
ana Elgalow as receivers. for tire simple
reason that they have been heretofore APP
pointed BY that court; AMI 4 tie application