The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-08-04
|RANK ASSETS must
| Be TURNED OVER ||
Judge Dyer in United States Dis
trict Court Rules in Sage Case
In Matter Of Alex
andria Bank.
TURN OVER TO TRUSTEE
Administration in Bankruptcy Court
is Result Of Courts Order In
This Important
Matter.
TURN OVER TO TRUSTEE

l
Louis, Mo-, has handed down his de-
cision in the matter of the petition of
the trustee OF the estate of David H.
Sage, bankrupt, praying that an order
| be made directing McDermott Turner,
receiver appointed by the circuit court
of Clark county. Missouri, in charge OF
the assets of the Sage Banking COM
pany at Alexandria, Mo-, to turn over
to the trustee for administration IN
the bankruptcy court the assets OF
said bank.
| Judge Dyer has gone into every
phase of the question very thoroughly
and in a we'll written opinion consist
| ing of twenty-six pages. has pointed
out that natural persons and unincor-
porated companies engaged In bust
ness as private bankers remain liable
to be adjudged bankrupt, and there
fore, has ordered that the receiver.
McDermott Turner, to forthwith turn
over to the trustee, Johnson B. Angle,
all the money, property and effects In
his possession Of David H. Sage doing
| business as the Sage Banking COM
pany.
After discussion relative to the
validity Of the Jurisdiction of the dis
trict court of the United States for
| the southern district of Iowa to adj
| Judge David H. Sage, bankrupt, the
! court holds that the respondents OBJ
| iections to the validity of such adju-
dication are untenable and that the
adjudication must be treated as valid.
Treats Of Private Bankers.
The vital question discussed Is
whether the property of David H. Sage
doing business as the Sage Banking
company is such property as under
the provisions of the bankrupt act
passed to his trustee in bankruptcy
by virtue of the adjudication OF bank
ruptcy The court in discussing the
receivers contentious that private
bankers could not be declared bank
rupts, states:
Both under the original act and
under the amendment Of 1910, all
natural persons, except wage earners
and persons engaged chiefly IN farm
| ing or tillage of the soil" and all 'un-
| Incorporated companies were liable
| to be adjudged involuntary bankrupts.
| If, therefore, a private banker Is
natural person" or an "unincorpor-
ated company" he has been liable to
be adjudged an involuntary bankrupt
at all times since the present bank
rupt act has been in force"
After the trustee in bankruptcy had
made application to the circuit court
of Clark county, Missouri, to order the
receiver to turn over the assets OF the
| bank to him, and said order had been
made by the circuit court, an appeal
was taken by the receiver to the SUI
| preme court Of Mi35ouri, and the re.
ceiver set up this fact In his answer
asking the federal court to defer ac-
| ton until the case was decided in the
supreme court OF Missouri. In answer
thereto Judge Dyer states: If the
supreme court Of Missouri could rem
der an authoritative judgment In the
pending case. and II this court was
vested with discretion to delay action
upon the present petition until. the SUI
preme court Of Missouri makes It's de.
cision, this court would be glad to
await the action of the latter court,
but this court IL of opinion that the
supreme court of Missorri has no
Jurisdiction to decide the present con-
Itroversy, and that this court has juris-
diction, and that it cannot properly
refuse to exercise its Jurisdiction"
.. Circuit Court Errs.
| Judge Dyer further states: I'm this
case this court is of opinion that the
circuit court Of Clark county made an
| inadyertent error in directing its re-
ceiver to retain the sum Of sixteen
hundred dollars to cover fees and
costs. AS the circuit court OF Clark
! county had no Jurisdiction over the
property in possession OF its receiver,
it had no authority to dispose Of any
portion Of said property or its pro-
ceeds. If any expenses have been in
Cured, or any services rendered In
the care and preservation OF the prop
erty. they WILL no doubt. be allowed
by the United States district court for
the southern district of Iowa. which