The sun., 1903-07-12
CHECK TO SHIpYARD RECEIVER
u. 3. JUDGE IN MAINE IN D0UBT
tABOUT HIM.
Thinks u. q. Judge Kirkpatrick Had No
'Durisdiction to Appoint Receiver
Under Jersey Statute C. bankruptcy Pro-
ceedinSs Might Dust Receiver Smith.

Referring to the application Of Receiver
smith, made through his counsel, Samuel
untermyer and Henry Wollman, TO have
the reoeivership Of Mr. Smith extended
over the property Of the several allied
corporations in the different States, Sulli-
van q Cromwell, counsel for the reorgani-
zation committee, confirm the fact that,
IN concert with Alexander a Green, counsel
for the trustees Of the first mortgage, they
had applied to the Judges to DO heard upon
any such application, basing their action
upon the ground, among others, that the
New Jersey court was without jurisdic-
ton to appoint receiver, as had been con-
tended before that court. Yesterday the
complainant, Conklin, and the receiver
through their counsel, Untermyer and Woll-
man, applied to United States Circuit Judge
Putnam, at Portland, Me-, for the appoint
ment OF Mr.. Smith as ancillary receiver in
that district.
Judge Putnam refused to appoint Mr..
Smith as receiver upon the present appli-
cation, saying that he would not make an
order appointing a receiver under any
circumstances except upon public hearing
and after eight days notice, but that while
he would not act upon the present appli-
cation In its present form. he would ex-
press his present opinion, namely, that he
was advised that Mr.. Smith had been ap-
pointed receiver by Judge Kirkpatrick OF
the United States District Court of New
Jersey, who had based his action upon the
existence of u statute of the State of New
Jersey authorizing the appointment of
receivers OF corporations organized In that
State in case OF insolvency; but that in his,
Judge Putnam's, opinion, the National
Bankruptcy act had abroRated all State in
solvency proceedings. In his opinion, Judge
Kirkpatrick was without jurisdiction to
appoint receiver under such circum-
stances.
Counsel for Mr.. Conklin urged the Court
to appoint MIR. Smith receiver. but Judge
Putnam said tho practice Of extending
rect eiverships had been 20 much abused
that he wes not at all sure he would allow
ID. He did not gay he could not be induced
to extend the receivership or to appoint
an indepe ndent receiver, but he did say
that one thing wes sure. that he would not
appoint receiver unless some provision
was made for the payment of all the re-
ceivcr's obligations rs we'll az his compnn-
sntion In his opinion, II a receiver were
appointed and banhrup cy proceedings
were afterward institute! the receiver
ship would fail
Mr.. Cromwell said last evening that the
situation under the decision OF Judge Put
nam was very serious, as, at any moment
somebody might apply in some State where
proceedings are not pending now, for the
appointment of a receiver under the Ma
tional Bankruptcy act.
Such an appointment, he said. would
invalidate whatever has been done in the
matter so far II is the desire Of our firm
and the reorganization committee to fore
stall such an occurrence by having single
receiver appointed for all the property,
in whatever State II may be. We are
firmly opposed to having the property
d.emembeed or split up into small parcels
Mr.. Cromwell added that the argument
in favor Of the extension OF Mr. Smiths
receivership to the State Of Maine would
begin before Judge Putnam as soon as
possible. The decision just handed down
by Judge Putnam was summary, he said,
and the Judge had given permission for the
presentation OF arguments, stating frankly
that he might change his mind.