The Birmingham age-herald., 1922-03-05
M0NTEVALLO co. WINS VICTORY BY
 CLAYT0N'S DEGREE
Ccontipucd From Page onc)


 ing between the bankrupt, the trus- tee and the attorneys of the bank rupt. and the attorneys of the trustee.
 Tn the view now taken of the allegations of the petition further de- tailed statement IS not deemed neces- sary.
 The prayer of the states petition is, as it has been stated that the order of adjudication be annulled and the voluntary petition of the Bankrupt be dismissed, or in the al formative that receiver be ap- pointed.
 Reese Petition
 Stafford Reese. a state convict who is plaintiff in a pending suit against the Montevallo company, the bankrupt, for damages on account of alleged personal injuries, has also brought his petition of similar inn port to that of the state. The bankrupt, the trustee and the other parties or defendants named in the petition have appeared and now move the dismissal of the petition upon the grounds set out in the mo-
 
 and considered together but separate order will be entered in each. q have listened with great inter est to the arguments of counsel and have given the matter thoughtful consideration. Whatever my incli- nations may be to approve the com mendable efforts of the faithful and courageous governor of the state to protect the public welfare committed I fn his lxHeninfr I ho t,,. 1 the law applicable to the case under consideration.
 Company's Right The Monteva1lo company had the | undoubted right under the bank l ruptcy law to file it's petition in bankruptcy and to be adjudged 4 bankrupt, whether solvent or insol- | vent and whether it's purpose was pure or impure, fraudulent or honest. The motive with which a lawful act ! is done Is Of no controlling import ance for it is fundamentally sound to say that a lawful act cannot be rendered unlawful although prompted by an unworthy motive. Numerous authorities sustain this proposition. | In this case if the bankrupt however solvent or however impure it's mo- tive may have been or whatever may | have been the actuating purpose. saw
 
 custody and jurisdiction of the court for the benefit of It's creditors, the creditors, as matter of law have no cause for complaint. Can Quit Doing Business "Unquestionably the MontevaIlo company could have made a general | assignment and if it had done so this l would have constituted an act of bankruptcy, and if such event had h9DnAna6 it har . l this matter would have come into the bankruptcy court by that route. And | It may be said that no court has the power to compel the Montevallo com pany to do business, for it had the incontestible right to quit. That is what 1t has done and this court can not compel it to continue to func tlon In order to avert some possible hardship to the state or to Reese All questions relating to the sub l jection of it's assets to the navmo,+ ] or It's debts-to carry out the object 1 and purpose of the law. are matters relatlng to the administration of tha estate and will be dealt with prop- | crly and in an adequate way when ] they arise in the management of the estate. The court has power to superVlse such matters and is always Watchlul to see to it that the estate of the bankrupt is honestly. eco. nomically and with decent and con Venlent speed administered. Moreover the state has the in- oisputabie right to have its claim for indebtedneSs and damages ascer- tafned and to file the same against the estate and to have payment made as in the case of any other creditor with provable claim. And as to the petitioner Reese if his claim is not provable in bankruptcy it will hardly be contended that 1t can be dlscharged or in any wise interfer ed with by the bankruptcy proceedinCs. If his claim be established in tbe way afforded by the law and the estate of the Montevallo company is abundantly solvent as the petitioner asserts then he can be paid in reference to the alternative prayer of the petitioner for the ap- pointment of receiver perhaps it is sufficient to say that a trustee has been elected by the creditors as pro- vided by law at meeting duly called and in a manner free from any legal objection. If l could deal with it as an original proposition might not have entertained the same views as the creditors did in the election of the trustee, but there is now no
 
 exoept for cause subsequently, sris- ing. Such cause has not yet arisen and in the event of such a cause hereafter arising this detail can and will be cared for in the interest of the creditors.
 Tt follows from what has been said that each of the petitions must be denied and separate order will be accordingly entered in respect to each of them"
 Formal Decree The formal decree reads as fol- lows:
 This cause coming on to be heard upon the motion of the defendants to dismiss the petition, come the parties. and the cause having been fully argued by counsel, and having been considered by the court, l am of the opinion that the motion to dismiss is we'll taken.
 Tt is therefore considered, order-N cd. adjudged and decreed that the motion of the defendants to dismiss the petition be and hereby is sus- tained. and the said petition is dis missed.
 Tt is further ordered that the ad- ministration of the estate will pro- ceed before the referee in the usual course.