Benjamin N. Cardozo

“ True it is also that a court receiving a petition for reorganization in invitum may approve or disapprove it, and that any hardship growing out of extreme or unusual situations may thereby be averted. Even so, the search at the moment is for a definition of an equity receivership that will tend to minimize anomalies, and give consistency and coherence to the statutory rule. There is little persuasion in an argument that in despite of all anomalies the system, if it is well administered, may manage to survive. ”

“ They will take care of a situation where only part of the property is within the jurisdiction, so that not even an 'equity receivership' will be competent always, without ancillary orders, to give possession of the whole. But the situation is very different if the receivership in view is one for the foreclosure of a mortgage. In its normal operation such a receivership does not connote possession of all the property of the debtor or even all the property within the appointing jurisdiction. ”

“ History and structure will be found to teach together that a receivership in a foreclosure suit is not an equity receivership within the meaning of the law.
The evils and embarrassments that brought section 77B into existence are matters of common knowledge. Corporations not insolvent in the statutory sense (United States v. State of Oklahoma, 261 U.S. 253, 260, 261, 43 S.Ct. 295, 67 L.Ed. 638) , but presently unable to discharge maturing obligations, were without a statutory method for winding up their business without a sacrifice of assets. ”

“ There is little doubt that many of these receiverships were legitimate and helpful. None the less there resided in the practice a capacity for abuses, which will be found reflected in the decisions of this and other courts. ”