The Montgomery advertiser., 1905-08-08
UNITED STATES COURT.
Important Decision by Judge Jones
 q Bankruptcy Case.

Bankruptcy Case.
 The following business was done in the United States Circuit and District Courts yesterday. in cases arising in the Middle and Northern Districts:
 Middle District:
 In re, Snodgrass, trustee vs. Vaughan demurrer overruled.
 In re, Clark and Parker Bros. bank rupts. petition for review of action Of referee, involving certain buggies be- longing to the Hughes Buggy Com pany, argued and submitted.
 Northern Division, Northern District, at Huntsville:
 In re HartselI and Son. as a firm and individually, bankrupts. Petition for review. Opinion filed. Action of referee confirmed As this case deals with a question of practice in bank ruptcy, 1t is gives 1t in full
 'In the District Court of the United States, for the Northern Division of the Northern District of Alabama In re Hartsell and Son. bankrupts. In bank ruptcy.
 'In the matter of the bankruptcy of J. c. Hartsel~and Son, as a firm and as individuals. D. E. Martin, who brought suit in the State courts. pre- vious to the adjudication in bankrupt cy, against the bankrupts individually, to recover damages for the conversion of a promissory note petitioned the referee to make an order that the ex- empt personal property of the bank rupts be held in the custody of the court, and that their discharge be with
 held until the determination of this suit. The referee declined to make either order, and denied the prayer of
 the petition. The petitioner seeks a
 review of his action.
 Jones, District Judge.
 The reason of the rule in Lockwood 8 case, 190 U. S., 294, requiring the court
 to withhold the discharge of bank rupt, who would otherwise be entitled
 to 1t, pending a suit against him. on
 written obligation for the payment of money. which contains waiver of exemptions of personal property. has no application whatever to this case. We have here no suit to enforce any contract, as to which there is a waiv- CT of exemptions of personal property. On the contrary, the suit is tort for the conversion of a note. which contained a waiver of exemptions. The waiver in the note related to the con- | tract embodied therein, and that con- tract Is not sought to be enforced or any way involved in this suit. The reason of the rule in Lockwood's case,
 withholding the discharge of the bankrupt, where he has given a note or obligation for the payment of mon- ey which contains waiver of exemp- tions of personal property, until the plaintiff can have a reasonable time in which to reduce the debt to judg- ment, ia. because the discharge, mak- ing the waiver of exemptions effective. The debt here Is unliquidated and the action is in tort It has been uniform ly ruled of late that the court of bankruptcy has nothing to do with ex- empt property except to ascertain
 whether 1t be exempt. and then to
 set 1t aside. It has no authority to
 enforce even an admitted lien upon the exempt property. Setting aside the property as exempt does not affect the rights of the lien holder, nor does 1t in any wise prevent a creditor. whose claim is not avoided by the discharge | in bankruptcy, from proceeding against the property in the hands of the bank | rupt, just as though he had not been adjuGged a bankrupt. The decision in re Garden, cited by petitioner. was overruled by this court in re Moore, 112 Fed. Reporter 2S9 Granting the prayer of petitioner. would be in effect | the Issue of an attachment by this | court against the exempt property of the bankrupt, at the instance of a cred itor. without any bond, to which se- curity the bankrupt would be entitled If the property were sought to be at tached in proceedings in the State court.
 The conversion of the alleged note
 which is the foundation of the pe-
 titioner's rights is denied by the bank rupts This court has no means of knowing whether there will ever be a Judgment in that suit. Under such
 circumstances. to withhold the dis l
 the custody of the court, would be
 manifestly improper The rulings >of the referee are in all things confirmed
 and the petition for review dismissed" "