Cole v. Philadelphia & E. Ry. Co.

Citations

• 140 F. 944
• 1905 U.S. App. LEXIS 4860

Syllabus

<p>1. Railroads — Receivers—Powers of Federal Court — Insolvent Railroad Company.</p> <p>A United States court, in the exercise of its chancery powers and of a sound judicial discretion, may appoint a receiver for an insolvent railroad company, where its jurisdiction is invoked by a proper party, and it is shown that valuable results will accrue to the creditors and stockholders by continuing it as a going concern, and preserving the integrity of its property, which would otherwise be dismembered by means of separate suits.</p> <p>[Ed. Note. — Preservation and prevention of removal of property be- . yond jurisdiction pending litigation as ground for appointment of receiver, see note to Clark v. Brown, 57 C. C. A. 80.]</p> <p>2. Courts — Federal Jurisdiction — Transfer of Cause of Action.</p> <p>The fact that a cause of action was transferred to a citi2:en of another state for the purpose of enabling him to bring suit thereon in a federal court does not defeat the jurisdiction of such court, where the transfer was bona fide and absolute.</p> <p>[Ed. Note. — For cases in point, see vol. 13, Cent. Dig. Courts, § 865.]</p> <p>3. Same — Suit for Receiver — Ancillary Proceedings.</p> <p>Where a federal court has taken possession of the property of a railroad company by its receiver, appointed in a suit of which it had jurisdiction, it does not lose its exclusive jurisdiction to administer the property because other parties interested therein intervene to enforce particular rights, as for the foreclosure of a'mortgage, even though they may be citizens of the same state as the defendant or others adversely interested.</p> <p>[Ed. Note. — Supplementary and ancillary proceedings and relief in federal courts, see note to Toledo, St L. & K. C. R. y. Trust Co., 36 C. C. A. 195.]</p>