Omaha daily bee., 1899-12-07
TWO RULINGS ny JUDGE sHIRAs.
One Sust.inS Referee Mnyne, the
other RcNerses Him.

| other RcNerses Him.
The ruling of Judge Shras of the United
/ States district court in the matter of tho
bankruptcy of Grantz G. Gloe of Walnut
Ia, taken before him on appeal from the
decision of Referee Mayne, was received
here yesterday.
b In November 1898, a number of the cred
itors of Grantz & Gloe, an implement firm
doing business at Walnut, Ia, filed pc
tttion in the federal court here asking that
the firm be declared bankrupt, also that a
chattel mortgage given to the German bank
of Walnut be set aside and the bank com
PEELED to turn over the property attached
| under the mortgage for the benefit of the
creditors at large This raised the i'm
portant question of the relative Jurisdiction
of the federal and state courts. The bank
had attached the property under an order
OF the district court and refused to turn it
over to the trustee selected by the cred
itors filing the petition in the federal court
When the case came before w s. Mayne,
the referee for this district, he held that
the property taken by the bank under the
writ of attachment belonged to the bank
rupt estate and should be turned over to
the trustee for the benefit of the creditors
at large 1t was shown at the hearing that
thAS eiAt''tSi llloi lSdSt utlu ny lue Ddnh WdS
not placed on record until within short
time of the proceedings brought by other
creditors in the federal court On behalf
Of the creditors it was claimed that if the
existence of the chattel mortgage had been
been able to secure the credit they did.
From the ruling of Referee Mayne the Bank
of Walnut appealed. Judge Shiras, in his
decision, afirms the referee and the prop
erty held by the bank will now have to be
turned over to the trustee, w. E. Haver-
stock of this city, for the benefit OF the
creditors in common. The property amounts
to about $4,000
Another point on which Judge Shras was
asked for a ruling was the matter of the
claim of the Deering Harvester company.
Shortly before the bankruptcy of Grantz &C.
Gloe the Deering Harvester company sold
81 400 worth of binding twne to the Man
ming Mercantile company, of which Grantz
was manager. In order that the Omaha
agent of the Deering company might have
the benefit of the commission the sale it
was made out to Grantz, but the twine was
shipped direct to the Manning Mercantile
company The creditors of Grantz G. Gloe
set up the claim that the Manning company
was indebted to Grantz & Gloe in the sum
of $1400 for the twine, asserting the sale
had been made by the latter. The Deering
Harvester company interviewed, setting up
its claim to the $1,40O. Referee Mayne
ruled, however, that the money which had
been placed in the meantime in the hands
of a trustee belonged to the creditors OF
Grantz & Gloe and not to the Deering COM
pany and that the latter would have to
take it's chances with the other creditors
On this question Judge Shiras reversed
the ruling of the referee and held that as
the sale of the twine had in fact been made |
direct to the Manning Mercantile company
the money belonged to the Deering company
and the trustee is ordered to pay it over
to it.
Judge Shiras' ruling is important, mas
much as this is the first case in this dis
trict in which the question of the relative |
jurisdiction of the federal and state courts
has arisen.