The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-03-05
BuRLE1GH Is ALL RIGHT.
The Court Refuses to Remove Him
RS Receiver.

The Court Refuses to Remove Him
RS Receiver.
SEATTLE, Washington, March 4.-The
judges, today, refused to remove Re
ceiver Burleigh, of the Northern Pacific
road. There said to be sensational
developments coming.
The court stated that Burleigh would
continue to act as receiver for the North
ern Pacific in this state, Oregon, Mon
tana and Idaho. He will continue to re-
ceive 600 a year. Judge Gilbert wrote
the decision. He takes the position that
Justice Fields order, while making
Judge Jenkins court the court OF prl-
mary Jurisdiction. gave this court rlght
to do what was necessary to protect the
creditors and other affairs of this cir
cult.
The decision contains a, keen thrust at
the eastern people who have sneered-
at the authority of the court here and
who, it is alleged, disobeyed Judge
Hanford's command to appear in
court The decision is received here
with general qualification. The de-
cision quotes the order OF the circuit
justice declaring the Wisconsin United
States circuit court to be the court 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
it's own motion, to make such orders
and DEGREES as it shall seem just for
the protection of the creditors of the
railroad company residing within its
jurisdiction.
1t is urged on behalf of the Farmers
Loan & Trust company that the dis
charge of Burleigh by this court and
the appointment of McHenry and Bige-
low in his stead, are necessarily in
uo1uo1 in tho sion a arrived at in
said order of the circuit justice quoted
above; we do not so conStrue the terms
or the purports of the order? 1t de-
clareS that the court at Milwaukee is
the court of primary administration.
1t does not follow, however that it is
not implied in the order, that the re-
ceivers appointed by the court of
primary administration shall be sub
stituted in his place. All the objects
to be secured by the order may be OBJ
tanned by the retention of the present
receiver. In our judgment the proper
management of this property requires
that it be in the hands of receiver
resident within this circuit and amen
able to the orders of the court thereof.
In the order of the circuit justice
the power of this court TO do what
ever may be by the court deemed es-
sential for the protection of the rights
of 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
order to secure to creditors the right
to commence and prosecute actions
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 recognizing its power to appoint
and approve. 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 pro-
lection of the rights of the people en-
titled to invoke it's jurisdiction The
rule of comfy does not require of
court exercising ancillary jurisdiction
airy powers. McHenry and Bigelow
being non-residents and almost con-
absent creditors must, to en-
force any demand against them, seek
another forum, for if this court can
not call the receivers to account for
their conduct, it will be without power
to compel them to appear in the
courts within this state in answer to
any process. In view of past expert
ence, we are not willing to appoint as
receivers persons who will not recog-
nize the power of the court to control
them in the administration OF the
trust
The application of the complainant
will therefore be denied.