Where one of two partners resided in the United States and the other in Canada, it was held that the court could adjudge the former a bankrupt, but not the latter. In re Burton et al., 9 Ben. 324; 4 Fed. Cas. 863. The court entertained jurisdiction of a petition in bankruptcy by one member of the firm who resided in the district, when the other members, who resided in another district, refused to unite after being requested, and when it appeared that the copartnership assets had come into the hands of the assignee. In re Penn et al., 5 Ben. 89; 19 Fed. Cas. 151.

Where two partners resided in different states, and each had filed a petition in bankruptcy in his own state, Judge Lowell ordered the proceedings to be stayed in the case in which the second petition was filed. In re Smith, 1 N. B. R. 214; 22 Fed. Cas. 397.

The court that first acquires jurisdiction of an estate in bankruptcy has exclusive jurisdiction, and other members of the same copartnership cannot institute proceedings in another court. In re Greenfield, 5 Ben. 552; 10 Fed. Cas. 1162.

Three partners resided in the southern district of New York and conducted business there. Two of them, as another firm, also carried on business in the northern district of New York. The former firm was adjudged bankrupts, and the assignee took possession of all their estate. Two weeks later a petition was filed against the other firm in the northern district. Held, that the latter firm was dissolved by the adjudication of the former; that its firm indebtedness would be discharged by the proceedings in the first case; that its creditors would be entitled to a preference over other creditors so far as the firm assets would pay the same, which would be recognized by the proceedings in the southern district; that creditors of the latter firm could not vote for assignee in the previous case, but might oppose the confirmation, or apply for his removal, and that the proceedings in the latter case should be stayed, while the proceedings in the southern district were pending. In re Leland et al., 5 Ben. 168; 15 Fed. Cas. 275.

[See notes to § 5.]

Jurisdiction over Corporations.

The court of bankruptcy may make an order upon subscribers to the stock of a bankrupt corporation without notice of the proceeding. Sanger v. Upton, 91 U. S. 56; Turnbull v. Payson, 95 id. 418.

The court of bankruptcy made an assessment upon the unpaid subscriptions to the stock of the bankrupt corporation. It was held that its action was conclusive, and not subject to collateral attack. Michener v. Payson, 13 N. B. R. 49; 17 Fed. Cas. 259.

The court of bankruptcy is vested with all the powers of the officers and stockholders of a bankrupt corporation in making assessments or calls for unpaid subscriptions to stock. Upton v. Hansbrough, 3 Biss. 417; 28 Fed. Cas. 839.

The court of bankruptcy can make an assessment upon the stockholders of a bankrupt corporation for unpaid stock, and such assessments should be enforced in actions by the assignee. The action of the court is not

subject to collateral attack in the suits to enforce the collection of such assessments. Payson v. Stoever, 2 Dill. 427; 19 Fed. Cas. 27.

The court of bankruptcy has the powers of a court of equity to make an assessment against the stockholders of an insolvent insurance company, to return unearned premiums, and to equalize payments between stockholders where some have paid more than their just proportion; and may in proper cases allow interest on claims. In re Rep. Ins. Co., 3 Biss. 452; 20 Fed. Cas. 544.

A court of bankruptcy does not lose its jurisdiction over a corporation by reason of the fact that the state has an interest in its property as a guarantor of its bonds. In re Greenville & C. R. Co., 5 Chi. Leg. News. 124; 10 Fed. Cas. 1180.

An action was brought by an assignee in bankruptcy to collect unpaid subscriptions from the stockholders of a bankrupt corporation. Held, that the question whether the call was for more than was necessary to pay the debts of the company could not be tried in such an action; neither was it competent to show that the agents and officers of the company had represented to their holders at the time of the purchase that the stock was nonassessable. Upton v. Hansbrough, 3 Biss. 417; 28 Fed. Cas. 839. The power of the United States district court in bankruptcy to wind up insolvent corporations was held not to be exclusive under the Act of 1867. Chandler v. Siddle, 3 Dill. 477; 5 Fed. Cas. 459.

The adjudication of a corporation in bankruptcy terminates the jurisdiction of state courts under laws authorizing them to wind up its affairs. The court further held that there is no question of comity in such case, but only one of jurisdiction. Watson v. Citizens' Savings Bank, 2 Hughes, 200; 29 Fed. Cas. 427.

Proceedings had been commenced under the laws of Louisiana to wind up the affairs of an insolvent bank. Later, creditors of the bank filed a petition in bankruptcy. It was held that the state law was superseded by the Bankrupt Act, and that the jurisdiction of the state court terminated with its decree declaring the forfeiture of its charter. Thornhill et al. v. Bank of Louisiana, 3 N. B. R. 435; 23 Fed. Cas. 1135; s. c., 1 Wood, 1; 23 Fed. Cas. 1139.

A court of bankruptcy will not compel a receiver of a joint-stock bank, appointed by a state court under the laws of the state, to deliver the assets of the bank to an assignee in bankruptcy. Goodrich et al. v. Remington, 6 Blatchf. 515; 10 Fed. Cas. 611.

Where parties were induced to purchase the stock of a corporation through fraud and misrepresentation, they cannot repudiate the contract in defense of an action for unpaid subscriptions after paying assessments and participating in meetings of stockholders until the company became insolvent. Upton v. Jackson, 1 Flipp. 413; 28 Fed. Cas. 844.

A state court issued an order dissolving a corporation, without jurisdiction. Subsequently, the corporation filed a voluntary petition in bankruptcy, and an adjudication was had. It was held that this would not be set aside on the ground of a prior order of the state court; and it was

further decided that there is no presumption of jurisdiction in a state court respecting proceedings for the voluntary dissolution of corporations under the laws of the state. In re Pensacola Lumber Co., 8 Ben. 171; 19 Fed. Cas. 197.

When proceedings in bankruptcy against a railroad company were commenced the railroad was in the hands of receivers appointed by state courts. The district court refused to interfere with their possession. Alden v. H. & E. R. Co., 5 N. B. R. 230; 1 Fed. Cas. 328.

A court of bankruptcy has jurisdiction to enjoin proceedings to wind up a savings bank under the laws of the state, notwithstanding they were commenced prior to the filing of the petition. In re Citizens' S. Bank, 9 N. B. R. 152; 5 Fed. Cas. 738.

A receiver for an insolvent corporation had been appointed under the laws of the state. Subsequently, a petition in bankruptcy was filed, and an order to show cause was served on the managing officer of the corporation. On the following day, the state court entered a judgment dissolving the corporation. About a week later an adjudication was had in the bankruptcy proceedings. It was held that the court had jurisdiction to make the adjudication. Platt v. Archer, 9 Blatchf. 559; 19 Fed. Cas. 822.

[See notes to §§ 4 and 47.]

Appointment of Receivers.

A court will appoint a receiver of mortgaged premises of the bankrupt alleged to have been fraudulently conveyed, notwithstanding the bankrupt has relinquished possession. McLean v. LaFayette Bank et al., 3 McLean, 503; 16 Fed. Cas. 262 (1845).

Where attorneys for the opposite parties are present in court, a receiver may be appointed without notice. Id.

An injunction may be granted forbidding parties to collect rents from real estate in which the bankrupts have a legal or equitable interest, and a receiver appointed to collect and account for such rents. Keenan v. Shannan et al., 9 N. B. R. 441; 14 Fed. Cas. 177.

A court will not appoint a receiver of mortgaged property of the bankrupt after the appointment of an assignee. In re Bennett, 2 Hughes, 156; 3 Fed. Cas. 206.

After adjudication, and before the election of an assignee, a receiver may be appointed for the temporary custody of the estate; but such a receiver cannot maintain an action to recover property transferred by the bankrupt in fraud of the law, nor can the assignee be substituted and permitted to prosecute a suit so begun. Lansing v. Manton, 14 N. B. R. 127; 14 Fed. Cas. 1129.

A receiver was appointed in bankruptcy proceedings to take possession of certain property. Instead, he took possession of other property which never belonged to the bankrupt. The owner brought a suit against the receiver for trespass, and another in replevin against his custodian. In the latter suit, the defendant appeared and judgment was rendered against him. In proceedings to punish the owner of the property for contempt, the court held that after the custodian had appeared in the

state court it was too late to complain that the suit was in contempt of the authority of the court of bankruptcy; also, that the receiver was not sued in his official capacity, but as an individual, and that he was not entitled to the protection of the court of bankruptcy. In re Young, 7 Fed. Rep. 855.

On a bill to set aside a voluntary assignment made by the bankrupt, the assignee having been enjoined from interfering with the property in question, the appointment of a receiver by the bankruptcy court is not only proper, but necessary. Sedgwick v. Place, 3 Ben. 360; 3 N. B. R. 139; 21 Fed. Cas. 986 (1869).

Where a voluntary assignment had been made, and afterward the assignors became bankrupts, a special receiver having been appointed, it was held that the assets collected should be distributed directly by the receiver, and not through the assignee in bankruptcy. Sedgwick v. Place, 3 N. B. R. 302; 21 Fed. Cas. 999 (1869).

Injunctions and Chancery Jurisdiction.

The Act of 1841 gave the district court of the United States the jurisdiction of courts of equity as to matters arising in bankruptcy. Ex parte Foster, 2 Story, 131; 9 Fed. Cas. 508 (1842).

The bankrupt law clothes the district courts, sitting as courts of bankruptcy, with all the powers of courts of equity. Ex parte Norwood, 3 Biss. 504; 18 Fed. Cas. 452 (1873).

A court of bankruptcy can exercise the same power over judgment creditors that a state court of equity could exercise over such creditors if the debtor were not a bankrupt. Fowler v. Dillon et al., 1 Hughes, 232; 9 Fed. Cas. 616.

The provision of the Judiciary Act of 1793 which forbids federal courts to grant injunctions without notice to the adverse party was held not to apply to proceedings in the district court under the Bankrupt Act of 1867. Ex parte Donaldson, 1 N. B. R. 181; 7 Fed. Cas. 881.

Under the Act of 1841, Judge Story held that in the exercise of its general chancery jurisdiction, the district court could grant an injunction without notice in bankruptcy proceedings. Ex parte Carlton, 5 Law Rep. 120; 5 Fed. Cas. 86 (1842).

An injunction restraining certain creditors from interfering with the property of the bankrupts was made on petition. On proceedings for contempt, the court held that it had jurisdiction to issue the injunction in the manner employed. In re Ulrich et al., 6 Ben. 483; 24 Fed. Cas. 511. A court of bankruptcy will not interfere by injunction to prevent parties from ascertaining claims to property of the bankrupt which has been sold in the course of proceedings. Adams v. Crittenden, 17 Fed. Rep. 42. The bankruptcy court on the application of the assignee will enjoin the prosecution of a suit against him commenced without leave of that court. Lloyd v. Ball, 77 Fed. Rep. 365

A motion will not be entertained to punish a party for contempt in violating an injunction granted under section 40 of the Act of 1867, after adjudication. In re Moses, 6 N. B. R. 181; 17 Fed. Cas. 889.

In granting an injunction against third parties on a petition in involuntary bankruptcy, the court said that it could only remain in force until adjudication, and that a separate bill for an injunction must then be filed. In re Kintzing, 3 N. B. R. 217; 14 Fed. Cas. 644.

Injunction will be granted to restrain the disposition of property by an individual assignee of a bankrupt only in case of actual, imminent danger to bankrupt's property, and not as a mere preventive against possible waste or misappropriation. Ex parte Nightingale, 1 N. Y. Leg. Obs. 8; 18 Fed. Cas. 238.

The petitioning creditor set forth a conspiracy to embezzle the estate of the bankrupt. The court granted an injunction before adjudication, but required security to be given to cover all possible losses in case the creditor failed to establish good cause for the proceeding. In re Smith, 1 N. Y. Leg. Obs. 249; 22 Fed. Cas. 411 (1843).

Judge Deady decided that under section 1 of the Act of 1867 the district courts had equity jurisdiction over all things to be done by virtue of bankruptcy, and that it was not necessary to resort to plenary suits, as they might proceed on petition; further, that the Act of March 2, 1793, requiring notice, did not apply to applications for injunctions in bankruptcy proceedings. In re Wallace, Deady, 433; 29 Fed. Cas. 65.

The bankruptcy court has jurisdiction of a suit in equity to establish a trust in funds of the bankrupt's estate fraudulently appropriated; and objections to the bill will not be sustained because the fraudulent assignee of the funds is not made a party. Shainwald v. Davids, 69 Fed. Rep. 687. The district court, as a court of bankruptcy, is clothed with all the powers of a court of equity, and if, after adjudication, the bankrupt refuses to account for his assets or surrender his property when ordered so to do by the court, he may be committed for contempt. The power to punish for contempts, however, should be sparingly exercised, and only in cases where there can be no doubt of its propriety. In re Salkey, 11 N. B. R. 423; 21 Fed. Cas. 235 (1875); 11 N. B. R. 516; 21 Fed. Cas. 239 (1875).

Upon a petition in involuntary bankruptcy an injunction was issued against M., to whom it was claimed that property of the debtors had been fraudulently conveyed, restraining him from making any transfer or disposition of the goods so conveyed. Subsequently he was charged with contempt in violating this order. The court refused to take any action upon the contempt proceedings until the proper issues were made up by a suit at law or bill in equity against M. Creditors v. Cozzens et al., 3 N. B. R. 281; 6 Fed. Cas. 793.

Until an assignee is appointed, a petition for an injunction against the sale of real estate can only be filed by the bankrupt. In re Bowie, 1 N. B. R. 628; 3 Fed. Cas. 1067.

Under section 4 of the Act of 1867, it was held that upon the filing of a petition in involuntary bankruptcy, the district court, upon the application of the petitioner, could enjoin the debtor and his grantee from conveying or disposing of any property once owned by the debtor and claimed