The record-union., 1899-05-23
Disposed Of Over Five Hundred Cases
During the Past Session.
Renders Its First Decision Bearing
Upon the Present Bankruptcy
Law-An Opinion Also Handed
Down in the Case Of the San
VS.. the City of National City,
Rates.

WASHINGTON, May 22-The United
States Supreme Court adjourned to-
day for the term. During the session
the court disposed of 519 cases, leaving
3O2 cases on the docket.
The court to-day rendered the first
decision given by it bearing upon the
present bankruptcy law. The opinion
was announced by Justice White in the
case of the George M. West Company
VS. Lea Brothers, on certificate from
the United States Circuit Court of APP
peals for the Fourth District. The de-
cision was a question certified, and was
as follows
"As a deed of general assignment
for the benefit of creditors is made by
the Bankruptcy Act alone sufficient to
justify an adjudication in voluntary
bankruptcy against the debtor, making
such deed without reference to his SOL
vency at the time of. the filing of the
petition, the denial of insolvency by
way of defense to a petition, based
upon the making of a deed of general
assignment, is not warranted by the
bankruptcy law
tice Shiras, the court confirmed the
opinion of the Circuit Court of Appeals
for the Second Circuit in the case Of
K X Hayden, receiver of the Capital
National Bank of Lincoln, Neb., VS..
the Chemical National Bank of New
York The contention of Mr.. Hayden
was that he had right to recover on
behalf of the Nebraska bank on re-
mittances made to the New York bank.
which were en- route when the Ne
braska concern failed. The decision in
this court, as in that below, was ad-
verse to the claim.
Justice Harlan announced the opin-
ion in the case of the San Diego Land
and Town Company VS.. the city of Ma
tional City, Cal, and others. The case
involved the validity of the California
State law authorizing county and town
and city authorities in that State to
fix annually the rates that shall be
charged by any person or corporation
for water furnished within it's limits.
The suit grew out of the water rates
fixed by the authorities of National
City for the year 1895, which the land
company claimed were SO low as to be
confiScatory.
The Circuit Court refused to accept
this view, and issued a decree dismiss
ing the bill. Justice Harlan's opinion
confirmed this view. In passing upon
the merits of the case he entered with
considerable length into the question
as to whether the case was of char
acter to justify the interference of the
judiciary, concluding that the judiciary
should not intervene in such cases ex-
cept to prevent flagrant abuses. This
case was not, to the mind of the court,
of that character.
The court, through Justice Brown,
held that planks or boards on one side,
and tongued and grooved, should be
admitted free of duty as dressed lum-
ber,'' under the Tariff Act of 1894, and
not as a manufacture of wood" The
decision was rendered in the case of
the United States VS.. Frank Dudley,
and originated in Vermont
The decision of the Supreme Court
of the Territory of New Mexico in the
case of the Rio Grande Dam and Irr-
cation Company, which was favorable
to the company, was reversed by an
opinion handed down by Justice Brew
er. The case originated in a bill by the
from constructing a dam across the
Rio Grande in New Mexico that would
interfere with navigation. Justice
Brewers opinion ordered a reversal,
and the remanding of the case with
instructions to set aside the decree of
dismissal, and to order an inquiry into
the question whether the intended acts
of the defendants in the construction
of a dam and in appropriating the
waters of the Rio Grande will sub
stantially diminish the naviga bility of
the stream within the limits of pres
ent navigability, and. if SO, to enter
decree restraining those acts to the eX
tent that they will so diminish it.
The court to-day also decided the
case of the Louisville Trust Company
the Louisville, New Albany and Chi
cago Railway Company and others.
The case involves the contention over
the guarantee given by this railway
company on the bonds of a Kentucky
railway company amounting to 81 49,
OCO. This guarantee the New Albany
sought to have declared void. and much
litigation ensued.
The opinion in the case was pre-
pared by Justice Brewer, and found
the Court of Appeals for the Seventh
Circuit to be in error in that it failed
to protect the interests of certain cred
itors, the court saying that while not
intending any displacement of the or
binary rules or rights of mortgagor and
mortgage in a foreclosure they be-
lieved that under the circumstances,
as presented by this record, there was
error, and that the decision, which was
in favor of the railroad company in
the Court of Appeals for the Seventh
Circuit, should be reversed
This order was made to remand to
the Circuit Court with instructions to
set aside the confirmation of sale and
to inquire whether .'it is true, as AL
legged, that the foreclosure proceedings
were made in pursuance of an agree
ment between the bondholder and
stockholder to preserve the rights of
both and destroy the interests of unse-
cured creditors, and that if it shall
appear that such was the agreement
between the parties to refuse to per-
NIT the confirmation of sale until the