Page:Federal Reporter, 1st Series, Volume 4.djvu/155

 EETOHtJM ». BLiiOK BIVBll LtlIBBB 00. 141 �wards stipulated by the patties and ordered by tîie court that the receiver be authorized and directed to investigate the amount, validity, and lonafides of any and ail claims against the Company. On July 14th the Biank of Fort Madison, by its attorney, filed a petition setting forth the indebtedness to it and to others of the compaiiy, and the giving of the chattel mortgage as a necessity to raise money to carry on the busi- ness and pay the debts; that the eompany was out of funds and wholly unable to meet its obligations, or to pay the claims which were liens on the logs; that the laborers who put ia the logs and the persons who furnished supplies were pressing their claims ; that the eompany was insolvent and had stopped payments; that the property of the eompany consisted of pine logs in Black river which were running down that river in the spring; that the eompany could not raise money to employ men necessary to care for the logs, and that the property was in danger ojf being scattered and de- stroyed; that after the mortgage was given the said defendant took possession of the logs and run them down the river, hif- ingand paying meh, and fumishing supplies for the purpose, thus preserving the property for the receiver of the eompany and the creditors, and in so doing advanoing $24,584.16, which the bank asks shall be adjudged a just olaim against the eompany and paid as a preferred daim. �On July 16th, by order of the court, the matters chàrged in the petition were referred to Thomas A. Dyson to take testi- mony and report the same to the court. Afterwards, on August 6th, the order of reference -was modified so as to re- strict it to the taking of such evidence as might be offerëd, leaving it to the parties to take the depositions of witnesses to be used upon the hearing in the usual way. On Septem- ber 6th the defendant the Bank of Fort Madison filed an answer to the complaint, among other things setting up the claim covered by its previens petition, and demanding that it be adjudged to be a preferred olaim, and also a petition pray- ing a removal of the case to this court. �The defendant's counsel now move to bave the cause dock- eted in this court, which motion is resisted by the plaintiffs ����