court; Wright-Dalton-Bell-Anchor Stove Co. v. Sanders, 142 Mo. App. 54, 125 S. W. 518, adjudication in bankruptcy transferred to assignee in bankruptcy indebtedness of garnishee to bankrupt and judgment could not be rendered against garnishee in State court for indebtedness to bankrupt; D. C. Wise Coal Co. v. Columbia Lead etc. Co., 123 Mo. App. 263, 100 S. W. 684, lien of attachment obtained within four months. of bankruptcy is dissolved by adjudication in bankruptcy, and judgment rendered subsequently in State court is void in so far as it sustains attachment and orders levy and sale thereunder; Hamilton v. Smith, 36 Mont. 5, 122 Am. St. Rep. 330, 92 Pac. 34, sale of mortgaged stock of goods after filing of petition of bankruptcy was voidable at election of trustee; Ward v. Hargett, 151 N. C. 368, 66 S. E. 341, petition by trustees to vacate attachment of realty after adjudication of bankruptcy of owner is proper procedure under Bankruptcy Act of 1903; First Nat. Bank v. Masterson, 29 Okl. 78, 116 Pac. 163, bank was not entitled to retain deposit of one thousand dollars for indebtedness of depositor discharged by bankruptcy, though court failed to enter order of adjudication of bankruptcy; Cornelius v. Boling, 18 Okl. 476, 90 Pac. 877, claimant under unrecorded chattel mortgage taking possession of property within four months of bankruptcy cannot hold possession against trustee in bankruptcy; Goodnough Mercantile Co. v. Galloway, 48 Or. 243, 84 Pac. 1051, State court has no jurisdiction of suit against trustee in bankruptcy to foreclose equitable lien on personal property; Benner v. Scandinavian American Bank, 73 Wash. 495, Ann. Cas. 1914D, 702, 131 Pac. 152, trustee in bankruptcy may recover value of vessel transferred within four months of bankruptcy by unrecorded bill of sale to bank as security for debt.

Explained in In re Williamsburg Knitting Mill, 190 Fed. 875, unrecorded conditional sale contract, invalid under State law against lien creditors, is invalid as against purchasers from trustee in bankruptcy under act of 1898 as amended in 1910; In re Rathman, 183 Fed. 922, 106 C. C. A. 253, bankruptcy court did not, by filing of petition, obtain possession of mortgaged property with power to determine validity of lien; Neill v. Barbaree, 135 Ga. 773, 70 S. E. 639, trustee in bankruptcy is not entitled to possession of mortgaged property of bankrupt in possession of sheriff, although mortgage was foreclosed after petition in bankruptcy was filed.

Distinguished in Jones v. Springer, 226 U. S. 154, 155, 57 L. Ed. 163, 33 Sup. Ct. 64 (affirming 15 N. W. 107, 103 Pac. 267), bona fide purchase for value of perishable property held under attachment at sale made by order of local court before notice of bankruptcy proceedings is valid; York Mfg. Co. v. Cassell, 201 U. S. 353, 50 L. Ed. 785, 26 Sup. Ct. 481, filing petition does not operate as lien in favor of trustee against conditional vendor because of noncompliance with Ohio Rev. Stats., § 4155, requiring filing of contract; Thompson v. Fairbanks, 196 U. S. 525, 49 L. Ed. 586, 25 Sup. Ct. 306, upholding right of mortgagee to take posses



184 U. S. 1-18.

sion with mortgagor's consent after condition broken under recorded mortgage though within four months of filing petition; In re Zotti, 186 Fed. 85, 86, Ann. Cas. 1914A, 240, 108 C. C. A. 196, where bank paid checks in ignorance of filing of petition in bankruptcy against depositor, and receiver qualifying on day checks were paid made no demand for depositor's fund until after checks were honored, trustee could not recover from bank amount paid on checks; In re Zotti, 178 Fed. 305, payment of bankrupt's check by bank was not transfer of bankrupt's assets, as property is mere chose in action to which honoring checks is incident; Davis v. Crompton, 158 Fed. 742, 85 C. C. A. 633, under Pennsylvania law, title reserved in seller under conditional contract sale is valid against trustee in bankruptcy; In re Standard Tel. etc. Co., 157 Fed. 111, holding chattel mortgage on stock in trade of corporation to secure issue of bonds was fraudulent and void under Wisconsin law and could be successfully attacked by trustee in bankruptcy representing general creditors; Fisher v. Zollinger, 149 Fed. 60, 79 C. C. A. 76, mortgagee taking possession within four months prior to mortgagor's bankruptcy under recorded chattel mortgage has perfected lien; In re Burnham, 140 Fed. 928, failure of mortgagee to file renewal statement does not invalidate mortgage as against trustee in bankruptcy representing general creditors; In re Antigo Screen Door Co., 123 Fed. 252, 254, 257, 59 C. C. A. 248, holding taking possession by mortgagee under voidable unrecorded chattel mortgage before filing of petition validates mortgage as against trustee in bankruptcy; Tube City Min. etc. Co. v. Otterson, 16 Ariz. 315, 146 Pac. 207, where suit in State court to foreclose lien is begun before filing of petition in bankruptcy, State court may decree foreclosure and sale and pay debt without interference from bankruptcy court; Ayers v. Farwell, 196 Mass. 351, 82 N. E. 36, replevin to obtain possession of bankrupt's property may be maintained in State court after adjudication of bankruptcy before Federal court takes steps to obtain possession of property; Christopherson v. Harrington, 118 Minn. 46, 41 L. R. A. (N. S.) 276, 136 N. W. 290, vendor in executory contract for sale of land to bankrupt may, in interval between adjudication and appointment of trustee, serve notice on bankrupt of termination of contract for default in payment of purchase price; Beekman Lumber Co. v. Acme Harvester Co., 215 Mo. 235, 114 S. W. 1091, filing of petition in bankruptcy in 1903 without adjudication up to October, 1908, does not place bankrupt's property in custody of Federal court so as to prevent it from being garnished in action in State court; Kennedy v. Pierce's Loan Co., 100 Mo. App. 272, 275, 73 S. W. 358, 359, sustaining pledge of personalty made to defendant by bankrupt in good faith and on adequate consideration, after filing of involuntary petition, but before adjudication; John Agnew Co. v. Board of Education, 83 N. J. Eq. 64, 65, 89 Atl. 1053, where receiver is appointed by bankruptcy court for foreign construction company under contract to make municipal improvements, from date of appointment of ancillary receiver in New Jersey, no liens can be filed under

State law against fund due to company; Crumrine v. Reynolds, 13 Wyo. 117, 78 Pac. 402, conditional vendor can recover property where vendee adjudged bankrupt, though contra Rev. Stats. 1899, § 2837, contract of vendor not being filed with county clerk.

District Court had jurisdiction to compel return of goods seized by State court in replevin.

, Approved in Mishawaka Mfg. Co. v. Powell, 98 Mo. App. 539, 72 S. W. 725, holding from time bankrupt's property comes into custody of bankruptcy court on adjudication officers of State court cannot interfere.

Refusal to surrender property of bankrupt does not create adverse claim at time petition is filed.

Approved in In re Lummus, 214 Fed. 893, bankruptcy court cannot summarily adjudicate rights of creditor to property transferred to him on day before filing of bankruptcy petition, where it appears that indebtedness was bona fide and he claims property as purchaser; Le Master v. Spencer, 203 Fed. 214, 121 C. C. A. 416, marshal appointed to take charge of bankrupt's property has right to seize and hold property believed to belong to bankrupt in possession of third person claiming ownership; In re Logan, 196 Fed. 681, 685, deed to farm of bankrupt executed more than four months before bankruptcy is not adverse claim, where bankrupt continues in possession of farm; In re Cantelo Mfg. Co., 185 Fed. 278, president of corporation completing inventions at corporation's expense is estopped to claim in bankruptcy proceedings against corporation that patents and applications for patents belonged to him; In re Rathman, 183 Fed. 924, 106 C. C. A. 253, mortgagee having lien on bankrupt's property before petition in bankruptcy is filed is adverse claimant; Staunton v. Wooden, 179 Fed. 62, 102 C. C. A. 355, claim of possession of property of bankrupt's estate against trustee based solely on attachment lien is not adverse claim; In re Holbrook Shoe etc. Co., 165 Fed. 975, evidence warrants finding that corporation was organized to take over property to hinder creditors, and property in its possession alleged to have been purchased from bankrupt was subject to administration in bankruptcy proceedings; Knapp & Spencer Co. v. Drew, 160 Fed. 416, 417, 87 C. C. A. 365, where money belonging to bankrupt's estate is returned to bankrupt upon receiver's failure to qualify and paid to creditor pending bankruptcy proceedings, creditor's claim is not adverse; In re Ellis Bros. Printing Co., 156 Fed. 431, claim of attorney to money collected before bankruptcy as payment of bankrupt's indebtedness to him is not such adverse claim as will deprive bankruptcy court of jurisdiction; In re Eddleman, 154 Fed. 161, where, few days before filing of petition in bankruptcy, bankrupt sold property and delivered proceeds to his wife, latter is agent of husband, not adverse claimant, and court may order him to pay money to trustee, but may not order commitment for contempt for failure to pay to trustee amount paid to third person before bankruptcy.



184 U. S. 1-18 Explained in Goodnough Mercantile etc. Co. v. Galloway, 156 Fed. 508, bankruptcy court has jurisdiction of plenary suit against trusteeto enforce lien on standing timber, title to which passed from bankrupt to trustee.

Distinguished in In re Blum, 202 Fed. 885, 887, 121 C. C. A. 241, bankrupt's wife asserting, in reply to order of referee to show cause, that money was hers in her own right, was entitled to determination of her claim in plenary suit; In re Spalding Cotton Mills, 193 Fed. 555, 556, where director of corporation pays himself one thousand dollars on contract few days before petition in bankruptcy was filed against corporation, his claim is adverse and must be determined in plenary suit; City of Shelbyville v. Glover, 184 Fed. 237, 106 C. C. A. 376, holding court has jurisdiction to determine rights of receiver of railroad to build station on lot under grant of right of way from county and city denying rights after extending limits to include lot, and granting preliminary injunction against city.

Bankruptcy court may, by summary proceedings, compel surrender of property of bankrupt, though holder is agent, if no adverse claim be made to trustee in bankruptcy.

Approved in Babbitt v. Dutcher, 216 U. S. 105, 113, 114, 17 Ann. Cas. 969, 54 L. Ed. 403, 406, 407, 30 Sup. Ct. 372, corporate records and stock books of corporation adjudicated bankrupt pass to trustee and bankruptcy court may compel delivery by summary proceeding; Whitney v. Wenman, 198 U. S. 552, 49 L. Ed. 1160, 25 Sup. Ct. 778, and In re Schermerhorn, 145 Fed. 342, 76 C. C. A. 215, both holding on adjudication, following filing of petition, bankruptcy court has jurisdiction of property in possession of bankrupt which cannot be defeated by voluntary surrender of possession by officer; In re Schmick Handle & Lumber Co., 233 Fed. 449, where claimant of logs agrees with receivers in bankruptcy to manufacture them into lumber and pay proceeds to receivers, bankruptcy court has possession of fund and may determine summarily whether bankrupt's estate or claimant is entitled to it; De Friece v. Bryant, 232 Fed. 239, bankruptcy court of ancillary jurisdiction may in summary proceeding enjoin assertion of claim to notes in possession of trustee based on sale on attachment, void under Bankruptcy Act and preventing from obtaining payment or sellingnotes; Macy v. Roedenbeck, 227 Fed. 355, fact that bankrupt bank dissipated proceeds of note sent to it for collection does not give owner lien upon or right to priority of payment from general assets to prejudice of general creditors; In re R. & W. Skirt Co., 222 Fed. 258, 138 C. C. A. 67, money paid by member of bankrupt partnership upon debt immediately after filing of petition is recoverable in summary proceeding; Galbraith v. Robson-Hilliard Grocery Co., 216 Fed. 845, 847, 133 C. C. A. 46, bankruptcy court having possession of real property has jurisdiction to determine validity of lien of mortgage exe

cuted by bankrupt to secure pre-existing debt; In re Radley Steel Const. Co., 212 Fed. 463, 464, holding Federal District Court has power, in bankruptcy proceedings, to determine whether bank in possession of funds of bankrupt is adverse holder; Musica v. Prentice, 211 Fed. 328, 127 C. C. A. 575, where sworn admissions of two claimants show property belongs to bankrupt's estate, parties have no just adverse claim entitling them to test rights in plenary suit; Clark v. Snelling, 205 Fed. 243, 123 C. C. A. 430, trustee of bankrupt, holding legal title to land in trust for his mother has no better right than bankrupt had; In re Cantelo Mfg. Co., 201 Fed. 160, where claimant patenting metal stepladder organized corporation and received thirty thousand dollars of its capital stock for assignment of his rights, upon bankruptcy of corporation he was properly compelled in summary proceeding to transfer patents to trustee; In re Franklin Suit & Skirt Co., 197 Fed. 599, Bankrupty Court may by summary, order require persons, having possession of property of bankrupt without real claim thereto, to turn over property to trustee; Johnston v. Spencer, 195 Fed. 218, 219, 220, 115 C. C. A. 167, rights of trustee of bankrupt corporation and adverse claimant in good faith to property of bankrupt cannot be determined summarily in bankruptcy proceedings in District Court, but trustee must be remitted to independent suit; In re Denson, 195 Fed. 855, 856, bankruptcy court may by summary proceeding compel restoration of property in possession of bailee and sold by bankrupt after filing of petition to person chargeable with knowledge of fraud; In re Iron Clad Mfg. Co., 194 Fed. 909, 910, holding claim of third person having possession of assets alleged to belong to bankrupt was not so clearly unfounded as to authorize determination thereof in summary proceeding in bankruptcy; In re Alexander, 193 Fed. 752, 753, receiver in bankruptcy may maintain summary proceeding to set aside sale of assets of bankrupt by his attorney; In re Rathman, 183 Fed. 918, 923, 106 C. C. A. 253, bankruptcy court has no jurisdiction to determine in summary proceeding claim of mortgagee under mortgage made more than four months before bankruptcy; In re Meier, 182 Fed. 802, 105 C. C. A. 231, affirming order of bankruptcy court requiring treasurer of bankrupt corporation to pay trustee sum of twelve thousand five hundred dollars in money in his possession belonging to bankrupt; In re Stewart, 179 Fed. 225, 102 C. C. A. 348, assignee for benefit of creditors under State law is agent of assignor and does not hold adversely to latter's trustees and where he submits account to bankruptcy court, latter may make summary order requiring him to turn over funds to trustee, notwithstanding his claims for commissions and extra services; Clay v. Waters, 178 Fed. 393, 21 Ann. Cas. 897, 101 C. C. A. 645, holding District Court had jurisdiction to determine by summary proceedings controversies between trustee and adverse claimants after reasonable notice to claimants to present claims; In re Norris, 177 Fed. 598, bankruptcy court has power to ascertain whether adverse claim

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