The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-29
IT GUSTS Mr.. BURLEIGR.
With Him Will Go Many Other
Employees of the Railroad
Company.
as TO PRIMARY JURISDICTION
II Is Given to the Circuit Court
of the Eastern District of
Wisconsin.

WASHINGTON, D. c., Jan. 2S.-The
Northern Pacific Railroad receivership
case was disposed of to-day by the Justices
assigned to the several circuits in which
were properties of the company. An or
der was signed by each Circuit Judge for
his circuit. 1t has been to the several
courts of the Second, seventh, Eighth and
Ninth circuits. The order is as follows:
at is ordered that with respect to the
proceeding now being carried on for the
foreclosure of mortgages of the Northern
Pacific Railroad Company the Circuit
Court of the Eastern District of Wisconsin
be regarded as the court of primary ad-
ministration and proceedings in this court
are auxiliary in their character and in aid
of the proceedings in the court of primary
administration. This court reserves the
right at any time, upon application of any
person interested, or upon its own motion,
to make such orders and DEGREES as to 1t
shall seem just for the protection OF cred
itors of the railroad company residing
within its jurisdiction"
Justices Field, Harlan and Brewer pre-
pared and united in memorandum Of
conclusions as follows:
1--WE are of the opinion that proceedings
to foreclose a mortgage placed by rail-
road company upon its lines extending
through more than one district, to the end
that the mortgaged property may be effect
lively administered, be commenced in the
Circuit Court of the district in which the
principal operating Offices are situated
and in which there is some material part
of the railroad embraced by the mortgage
that such court should be the court of pri-
mary jurisdiction and principal decree,
and the administration of the property in
the Circuit Courts of other districts should
be auxiliary thereto.
but in view OF what has transpired in
these foreclosure proceedings, especially
in view of the fact that portion of the
line OF the road owned by the Northern
Pacific Railroad Company was, and is,
within the State of Wisconsin at the time
of the filing of the creditors bill Tin which
the trustee in the mortgage was a CO.
plaintiff), the Northern Pacific Railroad
Company was operating its road through
the Eastern District OF Wisconsin, al
though that part of its line so operated be-
longed to another company and was under
lease TO the Northern Pacific Railroad
Company for ninety-nine years; and
in view of the further fact that
the railroad company entered its
appearance and assented to the act of the
Circuit Court for the Eastern District oil
Wisconsin in taking jurisdiction, and as
such exercise of jurisdiction has been rec
ognized by the Circuit Court in every dis
trict along the line of the Northern
Pacific Railway and by all parties for the
period of about twenty years, during
which many orders in the course of adj
ministration have been entered-we are OF
the opinion that the Circuit Court for the
Eastern District of Wisconsin has iuris-
ton to proceed to a decree of foreclosure
which will bind the mortgagor company
and the mortgaged property, and ought,
therefore, to be recognized by the Circuit
Courts of every district along the line of
the railroad as the court of primary iuris-
diction; and that proceedings in the latter
courts, while protecting the rights of local
creditors, should be auxiliary in their
character and subordinate to the proceed
ings in the court of primary jurisdiction.
In expressing these views we are not to be
understood as passing upon the PROPOSE
ton advanced in argument, but not neces-
sary to be here considered, that 1t IS COM
petent for Circuit Court of the United
States, by consent of parties, to foreclose
the mortgage of a railroad, no part oil
which is within the territorial jurisdiction
OF said court
Justice Brown signed special memo
Iandum OF his views, which was as
follows:
"In view of the doubts suggested regard
ing the jurisdiction of the Circuit Court OF
the United States for the Eastern District
of Wisconsin to recognize the mortgage in
this case, and of the further fact that the
business Offices OF this company have been
and are still at st. Paul, I think the Cir
cult Court for the District of Minnesota
should be treated as the court of primary
Jurisdiction. But as the whole object OF
the hearing before the Justices assigned to
the four circuits in which the property OF
the road is located is to secure harmony OF
action, have concluded to waive my per-
sonal views in Difference to the opinion OF
my brethren and to accede to the recogni-
ton of the Circuit Court for the Eastern
District of Wisconsin as the court of pri-
mary jurisdiction.