The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1914-03-14
LOCAL RECEIVERS RESTRAINED
FROM FURTHER AUTHORITY
BY OHIO COURT.
TRUSTEE PLACED IN CHARGE
Judge Sheppard Threatens to Call on
Countrys Highest Department to
Protect the Rights and Dignity of
the Georgia Court.

The case of the Yaryan Naval
Stores company bids fair to assume
national Importance by reason of the
clash between the Unitel States dis
trict court for the Southern district
OF Georgia, Eastern division, and the
United States district court for the
Western division of the Nc. .thern dis
trict of Ohio
On petition of creditor receivers
were appointed by the Geor, ia court
on May "a, 1918, and they ha re been
in possession of property eve since.
On Dec. l, 1913, certain creditors in
stituted bankruptcy proceedin., 5 in
The Ohio court and that court adjudg-
ed the defendant a bankrupt upon its
answer admitting its inability tC pay
debts and willingness to be adiud d
bankrupt. The receivers and a larg.
number of creditors contested the
bankruptcy proceedings, alleging that
the company was not insolvent and
that its officers and directors had no
right to take any action to bring about
bankruptcy proceedings because of an
injunction issued by the Georgia court.
The bankruptcy case is now pending
en- appeal in the Six circuit court of
appeals.
Upon petition of receivers and cred
itOrs the Georgia court recently grant
ed an order for the sale of the assets,
fixing upset prices sufficient to pay
creditors in full, and the sale for the
Brunswick plant is fixed for April Z,
and the other plant owned by the COM
pany at Gulfport for April IA.
Upon application Of the trustee in
bankruptcy the Ohio court on Thurs
day granted an order temporarily re-
straining the parties to the Georgia
case, including the receivers and their
counsel, from taking any proceedings
in the Georgia court against ]. c..
Blair, the trustee in bankruptcy, that
would interfere with his possession Of
the assets This order was made with
out the consent of the Georgia court
or without any application being made
to it. The trustee appears to be en-
tirely ignoring the Georgia court and
is seeking to wrest the possession of
all the assets from the Georgia court
without its consent and upon orders
issued in the Ohio court. Hearing will
be had at Toledo today upon appli-
cation of the trustee to make the Or
der permanent against the receivers
of the Georgia court. Counsel for
plaintiff in the Georgia case and coun-
sci for the receivers are now in Tam
pa to see Judge w. B. Shepard, who
has been DESIGNATED by Judge Pardee
to take jurisdiction of cases in the
court for the Southern district of Geor
gia, and to present petitions to him
setting up action of Ohio court and
ask for direction. Counsel from To-
ledo representing parties in the bank
ruptcy case was also present at the
hearing at Tampa
Judge Sheppard announced that he
proposed to uphold the dignity and
powers of the Georgia court even if
he had to call upon the department
of Justice to enforce the mandates and
DEGREES which have been heretofore
or may hereafter be granted. The re-
ceivers and their counsel in the
Georgia case take the position that
the court has full right to completely
administer the property, basing their
contention upon many decisions of
the federal courts including the su.
preme court of the United States.
There are a multitude CT Georgia cred
tiers practically all Of whom are seek
inc. the protection OF the Georgia court
There are many cases of conflicting
Jurisdiction reported, but it is stated
that the proceedings in the Ohio
court and the orders already granted
bv that court against the Georgia
court are the most far reaching and
involve the most serious questions