The Birmingham age-herald., 1911-10-03
DECISIONS BY THE
 COURT 0F. APPEALS
Unique Bankruptcy Case Is Passed Upon With Court
 Sitting in Atlanta

| Atlanta. October 2.-(Special.) )-The
 United states circuit court of appeals was
 convened here this morning at Il o'clock
 by Circuit Judges Pardee and Sheloy'
 and decisions were announced in the fol-
 lowing cases:
 | By Shelby, circuit judge: United States vs. Henry C. Mills ct al, from Southern district of Alabama; reversed and re- | handed.
 J. E. Johnson ct al, from Southern dis trict of Texas in bankruptcy; petition for revision allowed and decree reversed, with directions to trustees to pay additional
 interest claimed by the creditors and re- | turn the remaining surplus to the bank rupts.
 By pardee. circuit judge Vilter Manu- | featuring company vs. Alfred Abeei rom Western district of Texas; reversed and remanded unless defendant enters remit ltitur on judgment for sl3, ,450, in which cas- judgment affirmed.
 Fer curiam: r. Williams vs. City Bank and Trust company, from Southern dis- trist of Mississippi; petition for rehear- ing and application for modification or decree denied; mandate stayed 30 days. ADDllCatlOnS renedI1IlG are utuicd III the cases of Alexander s. Diar ct al. vs. United States and Roland, register. vs. United States, from Eastern district or Louisiana.
 The case of J. E. Johnson ct al vs. F. C.. Norris ct al, from Southern district of Texas, in bankruptcy. was one of the most unusual coming before the court of appeals.
 This interesting case grew out of the financial depression of 1907, and is rem Gered unique by the fact that, owing to
 careful management of the estates and the enhancement of securities of the banllrupts a substantial surplus will be returned to them by the trustees. Or November 6, 1907, the firm of Vine- yard Walker X Go. and the individuals composing it. filed their voluntary peti- tion in bankruptcy at Houston, Tex, and were duly adjudged bankrupts. In the course of the administration of the es- tates the creditors claims were paid in fLli, with interest to November 6, 1907, the date of the filing of the petition. On March 26, 1910. the trustees made re-
 rort showing surplus assets of SSS, 432 .Sl on hand, and prayed that they be author ized to return this sum to the bankrupts and be discharged. Certain creditors whose claims aggregated over s70.0OO re-
 sisted the discharge of the trustees under
  they ne allowed interest on their claims after November 6. 1907, and up to the time Of payment. The lower court denied this petition, and granted the prayer of the trustees, and the creditors applied for
 review, assigning this decree as error. The question presented for decision is: Where there is a surplus of voluntary bankrupts estate after the payment of all proved claims with interest thereon to the date of the filing of the petition, should all of such surplus be returned to the bankrupt. or should it be first applied to the payment of the interest which has accrued on the claims subsequent to the
 filing of the petition and the remainder only be returned to the bankrupt? The court allowed petition for revision end reversed the decree with directions to the trustees to pay the additional interest to the creditors and return the remaining surplus to the creditors.