James Clark McReynolds

“ As contemplated by Congress the receiver sought an adjudication of his rights. The final decree produced no interference with the trustee's possession, nor with the power of the orphans' court to order distribution of assets. The receiver's privilege to participate has been declared; only a judgment in personam was rendered.
Congress has empowered receivers of national banks to sue in federal courts; the obvious importance of permitting them freely to do so cannot be disregarded.
All necessary parties were brought before the trial court. The claim to the contrary is without merit. ”

“ Difficulties arose; many debtors defaulted; and, to meet the demands of certificate holders, the Bank advanced $40,000.
In September, 1931, the Bank failed; the Comptroller of the Currency appointed first Thomas, then Atwood, and finally respondent Bradford, as receiver to wind up its affairs. Desiring to relinquish control of the mortgage pool, the receiver consented to the appointment by the orphans' court of petitioner, Commonwealth Trust Company, as successor trustee for the pool assets, and delivered all of them to it. ”

“ The prayer of the bill asked an adjudication of the receiver's right to be paid the excess of the mortgage debts over outstanding certificates ($291,000) from assets of the pool; also his privilege to receive therefrom the amount advanced by the Bank ($40,000) on account of agreed interest upon the certificates; and for general relief.
The District Court granted relief as prayed. The Circuit Court of Appeals held that the bill stated a cause in equity within the jurisdiction of the trial court and, with certain modifications, affirmed its decree. ”