The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1896-02-01
Supreme Justices Decide That
He Has jurisdiction.
OVER THE N. P. RECElVERSHIPS
Opinion That for the sake of Harmony
this Wisconsin order Should
Have Precedence.

Harlan, Brewer and Brown of the SUI
preme court today rendered decision
in the Northern Pacific receivership
case that holds all courts along the line
of the road to be auxiliary to Judge
Jenkins court at Milwaukee. This de-
cision gives the Milwaukee court juris-
diction over the entire system in the
matter of receiverships.
II 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 jurisdic
tons, and such confusion and antagon-
ism arose that it was feared the inter-
ests of the road would be seriously jeop-
ardized.
Exception was taken to the jurisdic-
tion 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 a receiver or receivers for the en-
tire line should be designated.
THREE JUSTICES AGREED.
Justices Field, Harlan and Brewer
prepared and united in a memorandum
of conclusions, as follows:
1.-THE parties in the above cases, name
ly, the Farmers Loan and Trust Com
pany, the Northern Pacific Railroad
Company, the second mortgage bond
holders represented by Johnston LiV-
ingston, chairman, and the reorganiza-
ton committee of bondholders repre-
scented 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
ings to foreclose a mortgage placed by
a railroad company upon it's lines ex-
tending through more unan one district
should be- to the end that the mort
gagged property may be effectively adj
ministered, commenced in the circuit
court of the district in which the prin-
cipal 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
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 ii
these foreclosure proceedings, principal
~ in view of the fact that a portion Of
the line of road owned by the Northern
Pacific railroad was and is now in tn,
state of Wisconsin,, and at the time o.
filing of the creditors bill lin which the
trustee III the mortgage was a CO pam
tiff the Northern Pacific railway wa:
operating it's road through the eastern
district of Washington, although tina
part of it's line so operated belong t
another company and was under leas,
to the Northern Pacific railway for g.
wears; and, in view of the further fac
that the railroad company entered it
appearance and assented to the act o
1na ;ct, 10
of Wisconsin in taking jurisdiction, an,
as such exercise of jurisdiction has beef
recognized by the circuit court in ever.
district along the line of the Northern
Pacific railroad and by all parties 70
the space of about two years, during
which time many orders in the course o
administration have been entered, w
are of the opinion that the circuit cour
for the eastern district of Wisconsin ha
Jurisdiction to proceed to a decree o
foreclosure which will bind the mort
gage company and the mortgage
property, and ought, therefore. to b
recognized by the circuit courts Of ev
cry district along the line of the roa
as the court of primary jurisdiction
and that proceedings in the latte
court, while protecting the rights of tn
real creditors, should be auxiliary
their character and subordinate to tn
proceedings in the court of primary jul
isdiction. In expressing these view
we are not to be understood as passin
upon the proposition advanced in argl
ment that proceedings may be had b,
fore a circuit court of the United State
by consent of the parties, to foreclos
the mortgage of a railroad no part {
which is within the territorial jurisdi,