punish bankrupts, officers, and other persons and the agents, officers, members of the board of directors or trustees, or other similar controlling bodies, of corporations for violations of this act, in accordance with the laws of procedure of the United States now in force, or such as may be hereafter enacted, regulating trials for the alleged violation of laws of the United States; (5) authorize the business of bankrupts to be conducted for limited periods by receivers, the marshals, or trustees, if necessary in the best interests of the estates; (6) bring in and substitute additional persons or parties in proceedings in bankruptcy when necessary for the complete determination of a matter in controversy; (7) cause the estates of bankrupts to be collected, reduced to money and distributed, and determine controversies in relation thereto, except as herein otherwise provided; (8) close estates, whenever it appears that they have been fully administered, by approving the final accounts and discharging the trustees, and reopen them whenever it appears they were closed before being fully administered; (9) confirm or reject compositions between debtors and their creditors, and set aside compositions and reinstate the cases; (10) consider and confirm, modify or overrule, or return, with instructions for further proceedings, records and findings certified to them by referees; (11) determine all claims of bankrupts to their exemptions; (12) discharge or refuse to discharge bankrupts and set aside discharges and reinstate the cases; (13) enforce obedience by bankrupts, officers, and other persons to all lawful orders, by fine or imprisonment or fine and imprisonment; (14) extradite bankrupts from their respective districts to other districts; (15) make such orders, issue such process, and enter such judgments in addition to those specifically provided for as may be necessary for the enforcement of the provisions of this act; (16) punish persons for contempts committed before referees; (17) pursuant to the recommendation of creditors, or when they neglect to recommend the appointment of trustees, appoint trustees, and upon complaints of creditors, remove trustees for cause upon hearings and after notices to them; (18) tax costs, whenever they are allowed by law, and render judgments therefor against the unsuccessful party, or the successful party for cause, or in part against each of the parties, and against estates, in proceedings in bankruptcy;

and (19) transfer cases to other courts of bankruptcy. Nothing in this section contained shall be construed to deprive a court of bankruptcy of any power it would possess were certain specific powers not herein enumerated." 8

The Act further provides that: "In the event petitions are filed against the same person, or against different members of a partnership in different courts of bankruptcy, each of which • has jurisdiction, the cases shall be transferred, by order of the courts relinquishing jurisdiction, to and be consolidated by the one of such courts which can proceed with the same for the greatest convenience of the parties in interest." The General Orders provide that: "In case two or more petitions shall be filed against the same individual in different districts, the first hearing shall be had in the district in which the debtor has his domicile, and the petition may be amended by inserting an allegation of an act of bankruptcy committed at an earlier date than that first alleged, if such earlier act is charged in either of the other petitions; and in case of two or more petitions against the same partnership in different courts, each having jurisdiction over the case, the petition first filed shall be first heard, and may be amended by the insertion of an allegation of an earlier act of bankruptcy than that first. alleged, if such earlier act is charged in either of the other petitions; and, in either case, the proceedings upon the other petitions may be stayed until an adjudication is made upon the petition first heard; and the court which makes the first adjudication of bankruptcy shall retain jurisdiction over all proceedings therein until the same shall be closed. In case two or more petitions shall be filed in different districts by different members of the same partnership for an adjudication of the bankruptcy of said partnership, the court in which the petition is first filed, having jurisdiction, shall take and retain jurisdiction over all proceedings in such bankruptcy until the

830 St. at L. 544, 545, 546, § 2. 930 St. at L. 544, 554, § 32. Where the debts were all contracted in one district in which the business of the bankrupt obliged him to spend a portion of his time, it was held that it would be "for the greatest convenience of the parties in interest" to proceed there, even if the bank

rupt resided elsewhere. In re Waxelbaum, 98 Fed. R. 589. It was held further that this section and G. O. vi applied not only to a case where two or more involuntary petitions were filed, but also to a case where an involuntary petition was filed in one district and a voluntary one in another. Ibid.

11

same shall be closed; and if such petitions shall be filed in the same district, action shall be first had upon the one first filed. But the court so retaining jurisdiction shall, if satisfied that it is for the greatest convenience of parties in interest that another of said courts should proceed with the cases, order them to be transferred to that court." 10 It has been held that where a petitioner in involuntary bankruptcy resided at one district, where he was employed as clerk in a store, but was engaged in trade on his own account as a general merchant in another district, the court of the latter district had jurisdiction of the petition; that where a corporation closed its manufacturing works in one district five months before the petition was filed, discharging all its employees there except a watchman and a local superintendent who were kept to preserve the property, and in the intervening time carried on a liquidation of its affairs in its general office in another district where its principal officers lived, its directors' meetings were held, its books kept, its banking business transacted and its principal purchases and sales made, the court of the latter district had jurisdiction; 12 that where the only business transacted by a partnership for more than three months before the petition was filed was a winding up of its affairs within the district, the court had jurisdiction; 13 that where the debtor had lived abroad during the greater part of the preceding six months, but had not abandoned his original domicile, the court had jurisdiction where his original domicile was situated; but where the bankrupt lived without the district, and had a principal place of business within it until four months before the petition was filed, when she ceased doing business, that the court had no jurisdiction.15 A creditor, who has proved and filed his claim, participated in the election of a trustee and received a dividend, cannot object to the discharge upon the ground that the proceeding was instituted in the wrong district.16 It seems that creditors waive such an objection unless they make it promptly by a motion to dismiss the petition or to vacate the adjudication in bankruptcy."

10 G. O. vi.

11 In re Brice, 93 Fed. R. 942.

12 In re Marine Mach. & C. Co., 91 Fed. R. 630.

13 In re Blair, 99 Fed. R. 76.

14 In re Williams, 99 Fed. R. 544.

14

15 In re Plotke (C. C. A.), 104 Fed. R. 964.

16 In re Mason, 99 Fed. R. 256.

17 In re Mason, 99 Fed. R. 256; Allen v. Thompson, 10 Fed. R. 116.

19

A later section of the statute provides that "suits by the trustee shall only be brought or prosecuted in the courts where the bankrupt, whose estate is being administered by such trustee, might have brought or prosecuted them if proceedings in bankruptcy had not been instituted, unless by consent of the proposed defendant." 18 A District Court has jurisdiction to enjoin any suit or proceeding in the State court, whether by replevin " or sequestration,20 instituted after the adjudication in bankruptcy and the appointment of a referee; but has no jurisdiction of an action of replevin" or to set aside for fraud a transfer of property in the possession of a third person before the adjudication in bankruptcy, or to collect debts due the bankrupt, unless the defendant consents to the jurisdiction, when the District Court will entertain such a suit." "In proceedings in equity, instituted for the purpose of carrying into effect the provisions of the act, or for enforcing the rights and remedies given by it, the rules of equity practice established by the Supreme Court of the United States shall be fol

23

18 30 St. at L. 544, 552, § 23.

19 White v. Schloerb, 178 U. S. 542. 20 In re Whitener (C. C. A.), 105 Fed. R. 180.

21 Mitchell v. McClure, 178 U. S. 539. 22 Bardes v. Hawarden Bank, 178 U. S. 524; Wall v. Cox, 181 U. S. 244; In re Sheinbaum, 107 Fed. R. 247. But see In re Lewin, 103 Fed. R. 850. 23 Bardes v. Hawarden Bank, 178 U. S. 524, 538.

24 Hicks v. Knost, 178 U. S. 541; Bardes v. Hawarden Bank, 178 U. S. 524, 539. But see Sinsheimer v. Simonson (C. C. A.), 107 Fed. R. 898.

As to what constitutes consent, see Bryan v. Bernheimer, 181 U. S. 188; In re Riker, 107 Fed. R. 96; Boonville Nat. Bank v. Blakey (C. C. A.), 107 Fed. R. 891; Fisher v. Cushman (C. C. A.), 103 Fed. R. 860; In re Steuer, 104 Fed. R. 976.

It has been held that a District Court may, by summary proceedings upon notice, order the delivery to a trustee in bankruptcy of property of the bankrupt held by an assignee in insolvency, In re Stokes, 106 Fed. R.

22

312; but see Smith v. Belford (C. C. A.). 106 Fed. R. 658; by a State sheriff, In re Kenney (C. C. A.), 105 Fed. R. 897; or by a stranger who claims no right adverse to the bankrupt in the same. In re Moore, 104 Fed. R. 869. Contra, In re Nugent (C. C. A.), 105 Fed. R. 581. But that it has no jurisdiction, without consent, of a plenary suit by the holders of notes with a waiver of exemptions to reach and subject to their claims property of the bankrupt claimed by him to be exempt. Woodruff v. Cheeves (C. C. A.), 105 Fed. R. 601. Nor of a petition by the trustee to enforce the sale of collateral securities. In re Silberhorn, 105 Fed. R. 899. Nor of an application for an injunction against the disposition, by a third person, of property claimed to belong to the bankrupt. In re Ward, 104 Fed. R. 985. Nor of a suit in equity by the bankrupt to enjoin the enforcement of a decree for a sale of his property rendered by a State court in a suit to set aside a fraudulent conveyance which was commenced more than four

lowed as nearly as may be. In proceedings at law, instituted for the same purpose, the practice and procedure in cases at law shall be followed as nearly as may be. But the judge may, by special order in any case, vary the time allowed for return of process, for appearance and pleading, and for taking testimony and publication, and may otherwise modify the rules for the preparation of any particular case so as to facilitate a speedy hearing." 25

§ 475. Parties in bankruptcy.- Proceedings in bankruptcy are either voluntary or involuntary. It has been said that when a petition is filed by some of the members of a partnership in which others do not join, the proceeding is in its inception voluntary; and it so remains unless the others contest the adjudication, when it becomes, as to the dissenters, involuntary.1 Where a partner files a petition in bankruptcy alleging that another member, whom he makes a party, has refused to join, and praying that they both be adjudged bankrupts; and afterwards the other partner comes in, confesses himself a bankrupt and is so adjudged, it is a case of involuntary bankruptcy.2 Petitions of voluntary bankruptcy may be filed by "any person who owes debts except a corporation." A resident alien may file the petition.*

months before the bankruptcy proceedings. Pickens v. Dent (C. C. A.), 106 Fed. R. 653.

It seems that a District Court has jurisdiction to entertain proceedings to take possession of property of the bankrupt conveyed by a voluntary insolvent assignment within three months before the adjudication of bankruptcy and sold by the assignee thereafter and before the election of a trustee. To such a proceeding the court may make the assignee a party and dispose of the equities between him and his vendee. Bryan v. Bernheimer, 181 U. S. 188, 198.

25 G. O. xxxvii.

§ 475. In re Murray, 96 Fed. R. 600. 2 Metsker v. Bonebrake, 108 U. S. 66; In re Murray, 96 Fed. R. 600.

330 St. at L. 544, 547, § 4.

4 In re Boynton, 10 Fed. R. 277. Brandenburg on Bankruptcy (2d ed.),

78, citing In re Kaiy Chung, 1 N. B. N. 22. In re Brice, 93 Fed. R. 942, holds that a minor may become a voluntary bankrupt. In re Duguid, 100 Fed. R. 274, where the petition was filed by the infant's mother, who was his partner, says the contrary. An infant cannot be made an involuntary bankrupt. In re Dunnigan, 95 Fed. R. 428; In re Eidemiller, 105 Fed. R. 595. In re Funk, 101 Fed. R. 244, holds that a person who has been adjudged a lunatic cannot be made an involuntary bankrupt for an act committed after he became insane, and says that a man who has been adjudged a lunatic cannot be made a bankrupt; citing on the former point In re Marvin, 1 Dill. 178. In re Burka, 107 Fed. R. 674: Where no committee or guardian had been appointed to care for the property of a man who had been adjudged a luna