The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-12-09
COURT WILL ASSUME CHARGE.
ALL BANKRUPT ASSETS MUST BE
PAID TO THE COURT REGISTER.

- lI .ii.... ~
Even When There Are Liens Against
Former Property of Bankrupts, for
which Part of the Purchase Money
Has Been Retained, the Fund SO
Retained Must BE Paid In-COurt
VIII See to 1t That Rights of Pur-
chaser From bankrupt Are Pro-
tected-Referees Cannot Authorize
Employment of CounseI-WOuId-T3e
Bnnkrupts With Small Liabilities
and Large Salaries VIII Not BE
Discharged.
Interesting decisions In bankruptcy
cases have attended the present session
of the United States Court in Savannah.
Judge Speer has granted several orders
that have shown his conception of t he
elastic character of the act of bankruptcy
and of the authority and power granted
by it to the United States Courts to take
full charge and direction of a. bankrupt's
estate.
An order was handed down yesterday In
the matter of Polk & Corbett, who have
been previously adjudged bankrupt by the
court or some of it's officers. To a proper
understanding of the order some concep-
ton of the previous happenings in the
case is an essential Shortly before the
firm applied for discharge in bankruptcy
they sold a saw mill, with its appurte-
nances, to j. ]. Cummings of this city.
It appears that at that time there were
several liens against the mill, and that
by the consent of the parties a sum of
money exceeding 5000 was withheld by
the purchaser to pay off these liens when
they were presented and urged. 81
When the firm went into the court Of
bankruptcy and Mr.. Albert Wylly was ap-
pointed temporary receiver of it's assets,
he was officially notified of the fact that
this sum of money. due to the firm, re
manned in the hands of Mr.. Cummings, for
t-e purpose of satisfying the liens against
the mill which the latter had bought.
When he made application toathe purchaser
to have the money turned over TO him,
Mr. Cummings said that the liens against
the saw-mill still remained and that il
would be unsafe for him 10 follow the sug-
gested plan. A rule was issued against
Mr.. Cummings, requiring him to show
cause why he should not be compelled TO
the temporary receiver of the bankrupt's
estate.
The case was argued several days ago.
To the contention of the attorney repre-
sentng Mr.. Cummings, that the liens were
against the property, and that they were
capable of enforcement in the state courts
at any time, Judge Speer answered thar
the money was the property Of the estate
of the bankrupts and should properly be
turned over to the receiver that had been
appointed. In the order passed yesterday
Ii is directed that Mr.. Cummings paw 10
MIR Wylly the sum of S51S5.26. the
sum of money in question without
further delay. 1t is provided that those
who hold the liens may intervene in the
bankruptcy proceedings, for the purpose of
asserting them against the fund, and that
whatever rights Mr.. Cummings may re-
tain viii be preserved and protected there
When Judge Speer stated that the bank
ruptcy law was sufficiently elastic to cover
cases Of this character. the clear infer
ence was that those of the lien creditors,
who attempted 10 assert their liens
against the property by means of the
sta tutory remedy provided by the laws
OF the state, would be promptly required
to show cause in the United States Court
why they should not be attached for con-
TEMPT.
Another decision Of Judge Speer was oc-
casioned by another bankruptcy case that
was heard yesterday. In this case the
referee had undertaken to authorize the
trustee to employ counsel and to fix the
fee Of the latter. Judge Speer reminded the
referee the trustee and the attorney that
the right 10 pass an order directing the
employment OF counsel was special pre-
rogauve of the court that could not be ex-
ercised by anyone with less authority. He
permitted the employment OF counsel IN
the pending cases to go unchallenged, and
directed the payment OF their fees, but
most emphaucaily stated that It would not
be permitted IN the future.
Another dec sion Of the court has refer
ence to the condition Of insolvency that
prospective bankrupt must attain before
ne IS I'll q position to take advantage OF
the provisions Of the law. A case was IN