The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1898-06-15
Stralne VS. Bradford Savings Bank,

Subjoined is the full text of the decision
of the United States Circuit Court for the
District of Vermont, in the case OF Robert
Il. Straine VS. Bradford Savings Bank and
Trust Co:
An original bill was brought herein to
compel a set off OF claims OF the orator
against claims of the defendant and for a
decree for the balance; and to prevent dis
position OF securities held by the defendant
as collateral and for sequestraton OF de-
fendants property In nature of an attach
ment which was had. A supplemental bill
has been brought to prevent by injunction
disposition Of, and voting upon, the orators
stock in the defendant company, also held
as collateral, and an injunction has been
granted. Proceedings brought since by the
Inspector of Finance Of the State in the
State Court OF Chancery, wherein receiver
has been app 1inted for winding up the af
fairs Of the defendant, and ratably distri-
buting its assests among creditors, have
been pleaded to the supplemental bill; and
the plea has been argued.
An institution OF this kind may be pro-
ceeded against in this way for other causes
than insolvency. VT Stat, Sec. 1854.
Whether this proceeding is because of in
solvency which would leave the stock
worthless, or for some other cause which
might leave II OF value, is not set forth in
the plea. 1t might belong to the orator
again with the other collaterals upon salts
faction of the defendants claims against
him by set off, or otherwise, and the trial Of
this cause might be necessary to settle the
question OF such satisfaction. The case OF
Kolfe VS. Rumble, 103 q. 8. 202 is relied upon
to show that the receivership would draw
all quest relating to the property and
claims to those proceedings. In that case
however it was held that similar State pro-
ceedings to wind up a corporation did not
prevent trying questions concerning them
between citizens Of different States in the
United States courts; and the Judgment
was reversed for that purpose. In Rio
Grande Railroad Co. VS. Gomila 1872 U. S.
AIS the court held that proceedings in a
State Probate Court upon the death OF a
defendant in the United States circuit court
would not withdraw property from seizure
on process OF that court. And in Leadville,
Coal Co., VS. McCreery, 141 U. S AVS, the
court held that proceedings in court OF
Ohio, to wind up an Ohio corporation
would not withdraw property OF this cor
! poration from the effect of decree in the
| United States circuit court. The earliest
cases on this subject were reviewed in these
cases and the principles applicable to these
questions were deduced from them. III
the latter case Mr.. Justice Brewer said
| THE Circuit Court takes its Jurisdiction
| United States; and the extent OF its juris-
diction Is not determined by the laws Of the
State, but by those Of the United States.
Doubtless while sitting in the State as a
court of the United States, it accepts and
gives effect to the laws of the State 30 far
as they do not affect its irisdiction and the
rights of nonresident creditors. 1t never
theless exercises powers Independent OF the
| laws OF the State and when in pursuance
Of the jurisdiction conferred by the laws OF
the United States 1t takes possession Of the
| property OF a defendant and proceeds to a
final decree, determining the rights of all
parties to that property, its decree is not
superseded and its jurisdiction ended by rea-
son Of subsequent proceeding in the courts
OF the State looking to an administration OF
that property in accordance with the laws
Of the State" According to these princi-
pies the orator here, as a citizen OF another
State, had the right to have the claims in
controversy that must be adjusted in order
to ascertain his right to the stock which is
the subject Of the supplemental bill tried
and determined in this court The State
court has not by the appointment of the re.
ceiver attempted to interfere at all with this
right, and this court cannot properly deny
| it. Plea overruled.
HoYT II. WHEELER.