Red Lodge picket. [volume] (Red Lodge, Mont.) 1889-1907, 1896-02-01
OVER THE N. P. RECEWERSHIPS
Opinion That for the Sake of Harmony
the Wisconsin Order Should
Have Precedence.


1t was shown at this hearing that the
creditors bill and the foreclosure pro-
ceedings of 1898 had been filed in the
circuit court for the eastern district OF
Wisconsin, over which Judge jenkins
preSides. 1t was also shown that this
court then appointed receivers for the
entire system, who were for the time
recognized. Afterwards, however, the
circuit court for other districts appoint
ed receivers for portions of the road en-
braced within their respective jurisdlc-
tions, and such confusion and antagon-
ism arose that it was feared the inter
ests of the road would be seriously jeOp-
ardZed
Exception was taken to the jurisdlc-
ton of the Milwaukee court on the
ground that the Northern Pacific had
no road, except a leased line, within the
limits of the eastern district of Wiscon-
sin. This was substantially the only
objection made to it's recognition, and it
was estimated that at the time of the
hearing a large majority of the inter
ests involved would be satisfied with
the designation Of the Milwaukee court
as a responsible tribunal and one by
which receiver or receivers for the en-
tire line should be designated
THREE JUSTICES AGREED.
Justices Field, Harlan and Brewer
prepared and united in memorandum
of conclusions, as follows:
"The parties in the above cases. name
ly, the Farmers Loan and Trust Com
pany, the Northern Pacific Railroad
uac hnn d.
holders represented by Johnston Liv-
ingston, chairman, and the reorganlza-
ton committee of bondholders repre-
sented by A. E. Adams, have come be-
| fore us with petitions setting forth the
| general history of these causes and ask
| ing that such order be made in the re-
| Spective circuits to which we are as
| signed as will secure the operation as
an entirety Of the property of the rail-
road company, covered by mortgages
| in which the Farmers Loan and Trust
Company is trustee, and such other or
| ders in the premises as shall seem meet.
| And said application has been heard by
| us in chambers in the city of Washing
| ton, under an agreement in writing be-
| tween said parties, that we should dc
! so.
| 1--WE are Of the opinion that proceed
ngs to foreclose a mortgage placed by
a railroad company upon it's lines eX-
tending through more tnan one district
should be, to the end that the mort
gagged property may be effectively ad-
ministered, commenced in the circuit
| court of the district in which the prin
cipal operatin offices are situated anC
;,I, for io1 n
the railroad embraced by the mortgage
that such court should be the court OF
primary jurisdiction and of principa
decree, and the administration of prop
erty in the circuit courts of other dis
tricts should be an auxiliary thereto
But, in view of what has transpired il
| these foreclosure proceedings, principal
ly in view of the fact that a portion o
the line of road owned by the Northern
Pacific railroad was and is now in th
state of Wisconsin, and at the time o
filing of the creditors bill Gn which tn
trustee in the mortgage was a co-plaln
tiff the Northern Pacific railway wa
operating it's road through the easter
district of Washington, although tha
| part of it's line so operated belong t
another company and was under leas
: to the Northern Pacific railway for 8
, years; and, in view Of the further fac
that the railroad company entered it
appearance and assented to the act G
} the circuit court for the eastern distrc
of Wisconsin in taking jurisdiction, an
q as such exercise of jurisdiction has bee
recognized by the circuit court in ever
I district along the line Of the Norther
| 1>1- r,,tio r.
| the space of about two years, durin
. which time many orders in the course
. administration have been entered, "
{ are of the opinion that the circuit cou1
i for the eastern district of Wisconsin hs
Jurisdiction to proceed to a decree
foreclosure which will bind the NOR
gage company and the mortgage
8 property, and ought, therefore, to
= recognized by the circuit courts of e
~ cry district along the line of the ros
as the court of primary jurisdictjo
r, and that proceedings in the latt
1t court, while protecting the rights of tt
'e real creditors, should be auxiliary
their character and subordinate to t
proceedings in the court of primary ju
isdiction In pressing these vieN
s. we are not to be understood as passil
E. upon the proposition advanced in arg
S, ment that proceedings may be had /
~ fore circuit court of the United Stat
l. by consent of the parties, to foreclo
le the mortgage of a railroad no part
which is within the territorial jurisd
ton of such court
SPECIAL MEMORANDUM.
Justice Brown signed a special me
ora ndum of his views which is as f
~ lows:
20 "In view of the doubts suggested
garding the jurisdiction of the circ
court of the United States for
astern district Of Wisconsin to TO
l. close the mortgage in this case, and
the further fact that the business o
at ces of this company are at st. Paul
to think the circuit court for the dlst1
of Minnesota should be treated as
se court Of primary jurisdiction. But
'ut the whole object of the nearing pei
ne the justices assigned to the 1our
cults in which the property OF the r'
is located, is to secure harmony OF
tion. I have concluded to waive
ns personal views in Difference to the Oh
~ ion of my brethren ard to accede to
IA recognition of the circuit court for
eu- eastern district of Wisconsin as
court of primary jurisdiction.
An order was signed by each
cult justice and has been sent to
INT circuit court The order is as follow
en- ut is ordered that in respect to
ain proceedings now being carried on
the foreclosure Of mortgages on
Northern Pacific railroad, the cir
court for the eastern district Of '
cry .,- - ,.o,r.raad os the court
ces eo!isii oe .'.-.4,a ona +ho+
Der primary auiiililis.i 0''oli' 90 ~,
Ills, proceedings IN thls court WIZ NC o.
led larv in their character ana IN al(