shall sustain in the event such seizure shall prove to have been wrongfully obtained. Such property shall be released, if such bankrupt shall give bond in a sum which shall be fixed by the judge, with such sureties as he shall approve, conditioned to turn over such property, or pay the value thereof in money to the trustee, in the event he is adjudged a bankrupt pursuant to such petition."1 "The judge may, at any time after the filing of a petition by or against a person, and before the expiration of one month after the qualification of the trustee, upon satisfactory proof by the affidavits of at least two persons that such bankrupt is about to leave the district in which he resides or has his principal place of business to avoid examination, and that his departure will defeat the proceedings in bankruptcy, issue a warrant to the marshal, directing him to bring such bankrupt forthwith before the court for examination. If upon hearing the evidence of the parties it shall appear to the court, or a judge thereof, that the allegations are true and that it is necessary, he shall order such marshal to keep such bankrupt in custody not exceeding ten days, but not imprison him, until he shall be examined and released or give bail conditioned for his appearance for examination, from time to time, not exceeding in all ten days, as required by the court, and for his obedience to all lawful orders made in reference thereto." 2 pe The District Courts and other courts of bankruptcy have express power to "appoint receivers or the marshals, upon application of parties in interest, in case the courts shall find it absolutely necessary, for the preservation of estates, to take charge of the property of bankrupts after the filing of the tition and until it is dismissed or the trustee is qualified;" to "authorize the business of bankrupts to be conducted for limited periods by receivers, the marshals, or trustees, if necessary in the best interest of the estates; " and to "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." It has been held: that they have power to grant injunctions against interference § 480. 130 St. at L. 544, 565, § 69. 230 St. at L. 544, 549, § 9. It has been held that the bankrupt may be arrested in other cases. In re Lipke, 98 Fed. R. 970. See In re Ketchum (C. C. A.), 108 Fed. R. 35. 3 30 St. at L. 544, 545, 546, § 2 with the property of the alleged bankrupt by himself, by his assignee in insolvency; by the vendee of his assignee in insolvency, who had bought after the adjudication in bankruptcy; by the vendee of his assignee in insolvency who had bought under suspicious circumstances within four months before the petition in bankruptcy was filed and who had thereafter obtained a writ of sequestration from a State court;7 by a State sheriff who had made a levy within four months before the filing of the petition; by a receiver appointed by a State court in proceedings supplementary to execution, several years before the institution of the bankruptcy proceedings, but who had not previously taken possession; by a chattel mortgagee who had taken possession before the bankruptcy proceedings; 10 but not against municipal officers engaged in collecting taxes." Injunctions have also been granted against the prosecution in a State court of a suit of ejectment by a landlord 12 and of proceedings supplementary to execution by a creditor.13 A court of bankruptcy has jurisdiction to determine whether a debt is of such a character as is released by a discharge in bankruptcy; and to grant an injunction against a prosecution in a State court pending bankruptcy proceedings to collect such a debt; and to enjoin the execution of process issued be 4 So. L. & Tr. Co. v. Benbow, 96 Fed. R. 514. Rumsey & Sikemier Co. v. Novelty & Mach. Mfg. Co., 99 Fed. R. 699; Davis v. Bohle (C. C. A.), 92 Fed. R. 325; In re Gutwillig (C. C. A.), 92 Fed. R. 337; In re Sievers, 91 Fed. R. 366. 6 Wall v. Cox, 181 U. S. 244. was held otherwise, when the chattel mortgagee had taken possession before the filing of the petition in bankruptcy, and thereafter brought a foreclosure suit against the bankrupt and his trustee in bankruptcy in a State court. Heath v. Shaffer, 93 Fed. R. 646. See also In re Rock 7 In re Whitener (C. C. A.), 105 Fed. wood, 91 Fed. R. 363. Where a mortR. 180. In re Gutwillig, 90 Fed. R. 481; In re Michel, 6 Fed. R. 706. Contra, In re Easley, 93 Fed. R. 419. It was held, however, that attaching creditors and a receiver appointed at their instance by State court should not be enjoined before they had been served with process or voluntarily appeared. In re Ogles, 93 Fed. R. 426. 9 So. L. & Tr. Co. v. Benbow, 96 Fed. R. 514. 10 In re Nathan, 92 Fed. R. 590. It gagee of real property had obtained a judgment of foreclosure and sale in a State court before the institution of the proceedings in bankruptcy, and it appeared that there was no surplus, an injunction was refused. In re Holloway, 93 Fed. R. 638. 11 In re Duryee, 2 Fed. R. 68. 12 In re Chambers, Calder & Co., 98 Fed. R. 865. 13 In re Kletchka, 92 Fed. R. 901. The determination of fore or after judgment in such a suit. the State court upon the question is not conclusive; 15 and even if the District Court errs in granting such an injunction, its order is not void, and must be respected, and will be enforced until it is reversed or set aside.16 The court refused to issue a warrant to the marshal to seize property held by a person not a party to the proceedings under a claim of title adverse to the bankrupt, although under a conveyance which it was claimed was an illegal preference and avoided by the bankruptcy." A receiver appointed to take charge of the property of a bankrupt until the selection and qualification of a trustee may be ordered to sell the whole or any part of the property when that is necessary to prevent a loss, and a sale made by him under such circumstances without authority may be afterwards ratified by the court.18 It has been held that he is an officer who has the right to have a summary examination of the bankrupt or any other person concerning the acts, conduct, or property of the bankrupt; that he may be authorized to sue at law or in equity to recover property of the bankrupt; 20 but that he should not, before an adjudication in bankruptcy, be authorized to bring such a suit in another State; 21 and that he has no right to institute a suit to recover the amount of a preferential payment made by the bankrupt before the institution of the proceedings. It seems that the petition for a warrant of seizure by the marshal for an injunction or receiver should not be joined with that for the involuntary bankruptcy.23 22 19 § 481. Trials and references.- "If the bankrupt, or any of his creditors, shall appear within the time limited and controvert the facts alleged in the petition, the judge shall determine, 14 Knott v. Putnam, 107 Fed. R. 907. 15 Ibid. the appointment of a receiver, see In re Fixen & Co., 96 Fed. R. 748; 16 Wagner v. U. S. (C. C. A.), 104 In re John A. Etheridge Furniture Fed. R. 133. 17 In re Kelly, 91 Fed. R. 504. 18 In re Becker, 98 Fed. R. 407. It seems that before an adjudication in bankruptcy, a referee cannot appoint appraiser nor order the sale of the real estate free from liens. In re Styer, 91 Fed. R. 290. For circumstances which were held to justify Co., 92 Fed. R. 329. 19 In re Fixen & Co., 96 Fed. R. 748. 20 Ibid. 21 In re Schrom, 97 Fed. R. 760. 22 Boonville Nat. Bank v. Blakey (C. C. A.), 107 Fed. R. 891. 23 In re Kelly, 91 Fed. R. 504; In re Ogles, 93 Fed. R. 426. as soon as may be, the issues presented by the pleadings, without the intervention of a jury, except in cases where a jury trial is given by this act, and makes the adjudication or dismiss the petition." "If, on the last day within which pleadings may be filed, none are filed by the bankrupt or any of his creditors, the judge shall on the next day, if present, or as soon thereafter as practicable, make the adjudication or dismiss the petition." "If the judge is absent from the district or the division of the district in which the petition is pending, on the next day after the last day on which pleadings may be filed, and none have been filed by the bankrupt or any of his creditors, the clerk shall forth with refer the case to the referee." "Upon the filing of a voluntary petition the judge shall hear the petition and make the adjudication or dismiss the petition. If the judge is absent from the district or the division of the district in which the petition is filed, at the time of the filing, the clerk shall forthwith refer the case to the referee." "A person against whom an involuntary peti 993 § 481. 130 St. at L. 544, 551, § 18. Where the case is submitted upon the pleadings the allegations of the answer must be taken as true; and if a material allegation in the petition is denied, an adjudication of bankruptcy cannot be made in the absence of evidence in support of the petition. In re Taylor (C. C. A.), 102 Fed. R. 728. It has been held that where a material issue was the indebtedness of the bankrupt to a petitioner, an adjudication of bankruptcy which found that issue in favor of the latter was conclusive evidence of the validity of his claim, which could not thereafter be disputed by either the bankrupt or another creditor. In re Henry Ulfelder Cl. Co., 98 Fed. R. 409. As to the effect of the adjudication upon a collateral proceeding, see Graham v. Boston H. & E. R. Co., 14 Fed. R. 753; s. c., 118 U. S. 161. 230 St. at L. 544, 551, § 18. 330 St. at L 544, 551, § 18. The clerk cannot refer a petition in in voluntary bankruptcy to a referee for adjudication where an issue is made upon the allegations in the petition by the bankrupt or any other creditor. In re L. Humbert Co., 100 Fed. R. 439. Where, after the reference of a petition by part of a firm, the other partners appeared and contested the adjudication, it was held that the referees must certify the issue to the judge. In re Murray, 96 Fed. R. 600. 4 30 St. at L. 544, 551, § 18. A deputy clerk has no power to refer a petition in bankruptcy. Bray v. Cobb, 91 Fed. R. 102. But an order of reference made by the judge, and attested by the deputy, is valid. Bray v. Cobb, 91 Fed. R. 102. The clerk cannot refer a petition, whether voluntary or involuntary, unless the judge is absent from the division of the district where the proceeding is pending at the time when the reference may be made. In re L. Humbert Co., 100 Fed. R. 439. tion has been filed shall be entitled to have a trial by jury, in respect to the question of his insolvency, except as herein otherwise provided, and any act of bankruptcy alleged in such petition to have been committed, upon filing a written application therefor at or before the time within which an answer may be filed. If such application is not filed within such time, a trial by jury shall be deemed to have been waived. If a jury is not in attendance upon the court, one may be specially summoned for the trial, or the case may be postponed, or, if the case is pending in one of the District Courts within the jurisdiction of a Circuit Court of the United States, it may be certified for trial to the Circuit Court sitting at the same place, or by consent of parties when sitting at any other place in the same district, if such Circuit Court has or is to have a jury first in attendance. The right to submit matters in controversy, or an alleged offense under this act, to a jury shall be determined and enjoyed, except as provided by this act, according to the United States laws now in force, or such as may be hereafter enacted in relation to trials by jury."" Referees are appointed by the courts of bankruptcy within the territorial limits of their jurisdiction, each for a term of two years, subject to removal because their services are not needed, or for other cause. The limits of the districts of the referees are designated by the courts that appoint them, which have power to change the same from time to time, so that each county, where the services of a referee are needed, may constitute at least one district. Each court of bankruptcy has discretion as to the number of referees which it shall appoint. 530 St. at L. 544, 551, § 19. See supra, S 374, 301-306. It has been held that where the defense by the debtor is an alleged estoppel by conduct of the petitioners, he is not entitled to a trial by jury, Simonson v. Sinsheimer (C. C. A.), 100 Fed. R. 426; that where no demand was made or answer filed until after the return day of the subpoena the right was waived, Bray v. Cobb, 91 Fed. R. 102; and that the unsuccessful party is entitled to a bill of ex ceptions. Duncan v. Landis (C. C. A.), 106 Fed. R. 839. 630 St. at L. 544, 555, § 34. "Whenever the office of a referee is vacant, or its occupant is absent, or disqualified to act, the judge may act, or may appoint another referee; or another referee holding an appointment under the same court may, by order of the judge, temporarily fill the vacancy." Ibid., § 43. See Bray v. Cobb, 91 Fed. R. 102. 730 St. at L. 544, 555, § 34. |