The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1915-06-15
SUPREME COURT
DENIES PETITION
FOR CERTIORAR|
Means the End to Long Litiga=
tion Over Big Naval
Stores Case.
VICTORY FOR RECEIVERS
AND LOCAL COMMITTEE
Supreme Court of the United
States Denies the Petition, of
Blair, Trustee, in Favor of
the Receivers.

Counsel for the receivers of the Var
yam Naval Stores company yesterday
received telegraphic advice from the
clerk of the United States supreme
court advising that the court had de-
MED the application of James C. Blair,
trustee, for certiorari seeking review
OF the decision of the circuit court of
appeals of the fifth circuit which had
decided the question of jurisdiction
against the trustee and in favor of
the Georgia court
This decision is final and means
that the United States court for the
southern district of Georgia will now
speedily complete the administration
of the property. Another sale will be
promptly ordered and a purchaser will
be made under the reorganization
agreement between the creditors and
the Empire Investment company
Practically all of the creditors have
assented to this agreement, including
Clarence Brown and his associates.
Few cases have been more per-
sistently and vigorously ltigated than
the Yaryan case and a brief review of
this litigation will prove of interest.
Receivers were appointed by the
United States court of the southern
district of Georgia on May "a, 1913.
Homer T. Yaryan. James S. Bradley,
Jr. and Judge w. H. FELTON, were first
appointed receivers. Judge FELTON, de-
clined to act and e. w. Stetson of Ma
con was appointed as receiver in his
place. Mr.. Bradley and Mr.. Stetson
have been the active receivers in the
managemnt of the property and in the
administration of the assets. On De-
cember /, 1913, certain stockholders
and creditors of Toledo, Ohio, who
were dissatisfied with the proceedings
in the Georgia court and who have
generally been recognized as the anti
Bradley faction, instituted bankruptcy
proceedings in the United States court
for the western division of the north
ern district of Ohio.
These proceedings were resisted by
the receivers, but the company was
adjudicated bankrupt by the district
court and on appeal to the circuit
court of appeals of the sixth circuit
the decision was affirmed
In February, 1914, the receivers ap-
piled to the Georgia court for a de-
cree to sell the property of the COM
pany. This application was opposed
by James G. Blair and his associates,
but after full hearing Judge Shep-
pard granted the application. An ap-
peal was taken from this decision to
the circuit court of appeals and that
court sustained Judge Sheppard.
Subsequently, J. c. Blair as trustee
filed petition in the Georgia court
setting up the fact that the company
had been adjudged bankrupt and
that the trustee was entitled to all
of the assets, and praying that the
assets be delivered to him.
This petition was heard by Judge
Sheppard at Macon in July, 1914, and
the petition was denied, the court
holding that the Georgia court had
jurisdiction and that he trustee was
N-NN S'eAeiCu " blC pfOpeTIy. Inc
trustee appealed from this decision to
the circuit court of appeals of the
fifth circuit and this case was heard
in New Orleans, and the court render.
ed its decision March /, 1915, holding
that the trustee was not entitled to
the assets and that the Georgia court
had proper Jurisdiction and could ad-
minister the assets. This is the de-
cision which the supreme court of the
United States was asked to review.
AS an incident to the litigation the
trustee in bankruptcy obtained an or
der from Judge Killits in the Ohio
court directing and commanding the
receivers of the Georgia court to de-
liver all the assets to the trustee and
enjoined the receivers and thier coun-
sci and all other parties from inter.
ferring with the possession of the