Year: 1873

Application to Permit the Sale OF Ger


tain Securities Held by Blake Bros. &


Co. and others.


Mr.. Joseph II. Choate said that on the part of
Blake Brothers h Co., he had an application to
make in the matter OF George Bird Grinnen Co.
That application was that Blake Brothers & Co. be
allowed to sell certain securities which they held.
This matter had been very fully discussed when the
case was before the Court on 0 former occasion
The facts set forth in the papers and petition
and there the further fact OF an adjudication OF
bankruptcy. The first meeting of the creditors
would not take place until the 14th OF November.
The creditors whom he represented, as
foundation for this application, had made
proof OF their claim, and now under section 20 OF
the Bankruptcy act asked for direction OF the
Court for sale OF the securities. Counsel re-
ferred to the section as showing that there might
be sale under the direction of the Court. 1t mad
been urged one side, as reason for not selling
the securities, or for continuing the injunction
against their sale, that these stocks, as they then
stood, were much below their market value The
fact was that then, those securities had very
lar lower they would go. Notice Of this applica-
believed there was no opposition to 1t. Blake
Brothers K Co. had fled their proofs OF debt with
the REGISTER.


Judge Blatchford observed that he had already
had an application OF this kind from bank IN AL
bany-from creditor who had proved his claim
and he (the judge came to the conclusion that he
had no power to give direction for the sale until
the assignee was appointed. He would not give
direction to cut Off the power OF the general cred
itors before the appointment OF the assignee. He
thought that the whole spirit OF the twentieth sec
tion was applicable to something to be done after
the appointment OF an assignee. Mr.. Allen, the
Register in Bankruptcy, had stated that he had
never known matter before him, or on the books,
where the Court exercised this power OF direction,
to conclude and bind the assignee until the
assignee was first appointed and proof OF debt
made There was. however, no difficulty about the
sale. There was no injunction against IL.


Mr.. Choate remarked that he should like the
order to run so that they could sell the securities
either at public auction or at the Stock Exchange,
as they might be advised. They were merely
naked pledges OF the stock, and he wanted to be
freed from the purchaser saying "You should have
applied to the Court Tor leave"


Judge Batchl0rd-You must take your own risk.
There Is no injunction against your selling the
stock All wiz say Is that IN making max TINS order
have II did not make the order


Mr.. Choate-We have not proceeded on any con-


Judge Blatchford-No. You may have this sort
OF an order that have suggested.


Mr.. Algernon S. sullivan said he had similar
motion to make in another case.


Judge Blatchiord-I will give permission to do
this thing with all the force and effect the parties
would have to do 1t II did not make this order.


Mr.. Sullivan-I appear for J. b. Teiford h Co.,
whose petition Is similar to that OF Blake Bros 4
have been filed and they fully go into the matter.
am willing to let 1t 90 over to Saturday next.


Judge Blatcni0rd-I DO not Wish TO DO anything
to cut OF the rights OF any assignee VINO may be
appointed do not desire to cut on any rights the
assignee may now have at this moment before l
make the order. have the most earnest desire TO
relieve those gentlemen who have made ''call
loansn Where the parties are responsible have
no objection to make such an order as have sug-
gested II 1t is OF any use.


Mr. Coudert, as an Gnltcus curtT, said as he
understood the order the Court would give would
be an order granting them permission to do all
they liked to the sale OF the stocks II they did It
at their own risk. Then 1t might come 20 be asked
how this order was given II it was OF no useg


Judge Blatchford--lf the parties do not want TO
take the order, very well. They must take their
own risk


not to grant the order. Probably 1t might be taken


Judge Blatchford-I entirely condne myself to
the case OF 'call loansr There Is trouble and en-
barrassment to parties advancing money with one
hand and taking securities with the other.


Mr. Coudert-AI the cases are not like that.


Judge Blatchford-I cannot give directions, but
will give authority to sell, under certain reserva.
tions. As to granting such direction as would
tieth section, ] do not feel that am at liberty
to do that. Judge Woodruff Is here now, and II
you think well you can apply TO him as TO whether
this Court can give you this direction before the
appointment OF AN assignee. II SO, would be very
happy II would relieve me Immensely.


Mr.. Choate--your Honor, we Will consider the
matter.


The subject then dropped.


In the same case counsel, on behalf OF the Onion
Trust Company, handed to the Court papers relat-
ing to the transfer OF bond which the Trust Com
pany refused TO make on their books after the in
junction had been served upon them.


The Judge said he would read the papers.