New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-11
HAIGHT AND FREESE CASE
Recciuership Stamds-Defeoted IN
Motion for Remoual of Order.

! 1ocon,be in the United States Circuit
-. yesterday declined to vacate the receiver
a,,, order granted by him Tuesday against
49, 14aigbt &, Freese Company. He also refused
a. ,.acate the injunction restraining various
hanks and trust companies from turning over
20 the alleged insolvent brokerage company
assets in their possession.
Owing to the sickness of Walter D. Edmunds,
of this city who had been appointed on Iues-
dav one of the two ancillary receivers in this
State. Judge Lacombe substituted for him as
receiver Beverly Robinson.
Franklin Bien, representing the alleged bank
rupts made an extended argument, contending
that the Federal Court of Boston, before which
tribunal the original action brought, and
which appointed the first receiver, was without
Jurisdiction and authority to appoint a receiver
for foreign corporation, such as he insisted
the Haight & Freese Company was it had
been Incorporated under the laws of New-YOrk.
The Federal Court in Massachusetts had, he
argued. only power TO appoint a receiver for
such property of the company as might be
found within the proper federal dist let of that
tribunal. and not for the corporation proper.
The court could not, he further commended. APP
point a receiver on an eX-parte motion, and with
out due notice to the alleged insOlyent company
that it might be heard in its defence. The mere
naked allegation Of insolvency without proof,
he said. was insufficient in law. Mr.. Bien also
offered ~ denosit 81 800 in cash with the court
to cover the amount of the claim of the original
petitioner in Boston, that the receivers might be
discharged.
Roger Foster. the New-York counsel for the
plaintiff. argued that the appointment of the
receiver by the federal court of Boston was
regular and legally proper. as were the restrain
ing order and injunction granted by judge La
combe in this city on Tuesday. Relative 10 MI
Bien's offer to deposit the cash to liquidate the
claim of the netitoner in Boston Mr. Foster said
tho oc+;o, bod not boar, instituted IN collect the
cIalfn OF that one creator out III pe""iI u al
the companys creditors, and that the solicitor
of record now had in his hands claims of more
tha~ 100000 against it.
Ren1vina +o Mr. F2ien,s assartior, that tho cor,
pany was perfectly solvent. Mr. Foster said he
had inst haaD informed tbo+ tho oeioor- of tho
'- =,
'PS "u III 'iie OouiSe u 'le Jay Will
drawn large sum of money from the Colonial
Bank before the restraining order of the court
could be served upon it.
Rumor also had IL that the receivers counsel
had found 5000 600 % asoo+s f +b ,o
- ,-.,.' - -, y,
Con7nanv which f,7s - 49,. 80 -, -,
nron7n+I,, +,ed ~ -. .os.,ao, -
strafnfng order served 49,, PI ~ ne e5
Gals.
In denying the appliCa ton Of Mr. Rien Tudga
LaCOmbe said he would grant the defendants
counsel leave TO review the motion if the federal
court IN Boston should Vacate its order appoint
an irvoII,ntar ,a+t+;,,, :, ,..,.
filed Yesterday win ~ oiarl az ~ 49, Va
States District Court against tho Uaiob+ e.
Freese Company by Charles II Dou@l,artIT
- ~ go ~ - - IL a DouShVi "
nosited S1 egG 5ti %sseIIns Jhdt ne mas de-
- 80 FI,o'' WIN me aueged bankruptS for
the purpose OF puylng stocks for which, he
says, ne has received no certificates.
ffrfJa Wei ,;I,l
ing in which the Hafght e Freeze C,o,,,T,a,,, bas
ire NTarr vi, e. " - ec CoIIlLdIy mas
- - oVs, NJ 30 hIodu"ay put none
were permitted 10 enter the offices, which were
in charge of representatives of the receiver.