Hugo Black

“ Did the bankruptcy court in this involuntary proceeding have jurisdiction to order the disposition of property in the prosession of persons found by the court to be holding as agents of the alleged bankrupt? Respondents engaged the Tax Association of Illinois to seek exemption for respondents from an Illinois tax. The contract entitled the Association to $1,500 cash, and an additional $20,000 should the Supreme Court of Illinois find respondents exempt. ”

“ All persons who created or had any possible interest in that portion of the Fund ordered distributed were parties and present in the bankruptcy court. No one of them-including petitioners asserted or in any way indicated to the bankruptcy court that there could be any interest in the money distributed adverse to respondents. The sole claim adverse to respondents was that of the reeciver of the Association, for $20,000. This amount was not distributed and the court retained jurisdiction to determine controversies relating to it. ”

“ Bernheimer, supra, page 197, 21 S.Ct. page 560; see Taubel, etc., Co. v. Fox, supra, page 437, 44 S.Ct. page 400; Page v. Arkansas Natual Gas Corp., supra, page 271, 52 S.Ct. page 508; cf. Schumacher v. ”