89 F. 247 | D. Minnesota | 1898
(orally). I would like in this, as in many other cases, to give more consideration to the questions argued than I am able to during the hearing; but I do not think I had better take this case under advisement. One thing that makes it less necessary to do so is that there seems to be no special dispute with reference to the facts in the case. Counsel are so well agreed upon what these facts are that I am relieved from any careful examination of the testimony.
The first question that arises in the case is the one relating to the jurisdiction of the court. As I understand it, the principal action or proceeding was commenced in the United States circuit court for the Northern district of Illinois against the Chicago company as an insolvent corporation. Mr. Sullivan was appointed receiver, and in this district he was appointed ancillary receiver by this court. It seems to me that, as relates to any litigation arising here, he must be regarded as an officer of this court; and these notes and mortgages, although they may have been in the hands of the receiver who was first appointed in the administration of the estate, would naturally be transferred to the ancillary receiver appointed by this court, for prosecution here. Had the ancillary receiver been some other than Mr. Sullivan, — as might well have happened, — -the notes and mortgages would have been transferred to him, and I do not think there would have been any doubt as to the jurisdiction of this court to entertain a suit brought by him to collect these securities. The same thing occurs in railroad foreclosures where the railroad runs through different states. A foreclosure suit is commenced in the circuit court of one of these states, a receiver appointed, and an ancillary receiver will be appointed in any other district through which the railroad runs; and in case of assets of the railroad consisting of securities against persons who live in the district where the ancillary receiver is appointed, although these securities, in the first place, may come into the hands of the original receiver, they will be transferred to the ancillary receiver for the purposes of prosecution or liquidation in his district, the same as any other property that might be found in the jurisdiction where he was appointed; and the court will have the same jurisdiction with reference to them. I think that this court has jurisdiction of this case.
The principal question in the case is whether the Chicago associa tion, in contravention of the statute of Minnesota, did business within this state in obtaining tire obligations in suit; whether the notes and mortgages in this case were obtained from citizens of this state, by an officer or agent of that company coming into this state, and doing business here; or whether this business was transacted in Chicago, by citizens of Minnesota, who went there to transact the business. I apprehend that the penalties which are denounced by statute against these companies in case they do business with residents of this state apply only to cases where such business is done within the state. Such a statute cannot possibly have an extraterritorial effect, so as to prevent a company of that kind, located in Chicago, from transacting business lawfully with a resident of Minnesota who should go to Chicago, and transact the business there. There is nothing in that statute that would prevent such a resident of Minnesota from going to Chicago, and there applying and subscribing for and acquiring-stock of an association of this kind, and there obtaining, if he could, a loan from a corporation of this kind. T think there is nothing in this statute preventing him from there giving security upon property