The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1914-10-31
NO REVERSIBLE ERROR MADE
IN PROCEEDINGS OF THE
LOWER COURT.
DECISION is A BRIEF ONE
1t UphoIds Judge Sheppard in Order
ing Sale of the Plants and Gives
the Georgia Courts Jurisdiction in
the Case.

! A copy of the decision rendered by
the United States circuit court of ap-
peals for the Fifth Circuit at New
! Orleans on last Wednesday in the
laryan Naval Stores Company case
was received in the city yesterday.
The decision is very brief and point
ed. The court was composed of Cir
j.. cult Judge Pardee and District Judges
Grubb and Call. Here is the decision
in full
! By the Court
Where months after a creditors
Oil has been filed and the defendant
has appeared and filed an answer ad-
mltting the Indebtedness to the COM
plainant and all the equities set up
in the till and consented to the ap-
pointment of receivers, and where
under orders of court receivers have
entered upon the administration OF
the property of the defendant, in
curing obligations and large eXpendi.
lures, it is too late TO urge that, in
asmuch as the complainant's claim
has not been reduced to Judgment,
the suit should be dismissed because
the complaint had an adequate rem
edy at law; see Hollis VS. Brierfield
Coal and Iron Company, $50 u. S.
81, 3SO-1; Brown VS.. Lake Superior
Iron Company, 1874 U. S. 1870; Keynes
VS.. Dumont, 130 u. S. 1854, and see
Fed Rep Dig, Vol. VII, Eq., Sew. -3.
In asmuch as the equity proceed
affairs of the Yaryan Naval Stores
Company were instituted more than
six months prior to the alleged vol
untary bankruptcy proceedings
wherein it is claimed the Yaryan
Naval Stores Company was adjudi-
Gated bankrupt, the proceedings "a
the district court in this case were
rot necessarily affected Sec Pickels
VS.. Roy, 1877 u. S. III; Metcalfe VS..
Barker, 1877 u. S. 165; Eyster VS..
Gaff, 81 u. s. 52!: in Re Hickman,
140 F. $50 g G. c. Al; Sample vs.
Bessely, 1873 f. 6O7 @ c.. C. Az.
"On the record we find no rever~
sible error in the proceedings of the
lower court The decree appealed
from appears to have been re3u-
arly rendered in due course of proe
ceedings, and the same is affirmed"
| The most important feature of the
decision is the holding that the juris-
diction of the district court for the
Southern District of Georgia in the
equity proceedings was not terEli-
mated by the adjudication In bank
ruptcy. The contention of the
Yaryan Naval Stores Company in the
case was that upon the adjudication
| in bankruptcy the cout in Georgia
lost it's jurisdiction of the case md
had no right to do anything more
except to surrender the property TO
| the bankruptcy court. On the other
hand the receivers appointed by the
court in Georgia cCntended that they
having been in possession of the as
sets for more than four months be-
fore the petition in bankruptcy was
tled the jurisdiction of the court in
Georgia was not affected by the ad
judication in bankruptcy.
The case just decided was appeal
ed by Yaryan Naval Stores Company
from the decree ordering the sale of
the Brunswick and Gulfport plants,
granted by Judge Sheppard last Feb
ruary. Some months after the 1e
cree of sale was rendered the trustee
in bankruptcy filed petition seek
ing to enjoin the sales and praying
that the receivers OF the court in
Georgia be directed to surrender TO
him all of the assets in their hands
This last petition was heard in July
and Judge Sheppard refused to en-
join the sales or to order his re-
celvers to surrender the properties.
rom this decision the tustee in bank,
lruptcy appealed. This case is now
pending before the circuit court Of
appeals and will probably be heard
in January.
Parties at interest in Brunswick
express the opinion that the decision
rendered by the court of appeals this
week will have material effect upon