James Clark McReynolds

“ Counsel for petitioner assert: Bankruptcy proceedings constitute a branch of equity jurisdiction; a court sitting in bankruptcy is a court of equity. Fidelity Trust Company v. Gaskell (8th C. C. A.) 195 F. 865, 871. Remington on Bankruptcy, Vol. 1, p. 48, § 23.
And then they say: 'Obviously, except as the privilege of modification is granted to facilitate speedy hearings, the rules of equity practice are applicable, without limitation or reservation, to all equitable proceedings in courts of bankruptcy,' including of course summary proceedings before referees. ”

“ Without regard to other objections to the reasoning offered to support petitioner's view, it is obviously unsound unless the words 'proceedings in equity,' in General Order xxxvii apply to summary proceedings before a referee like those here in question. And we think no such intendment can be attributed to them. ”

“ The Guaranty Trust Company moved that paragraphs 7 and 8 be stricken from the answer because they pertained to an issue entirely separate from the one submitted by its petition. This was overruled. Thereupon, counsel for the trust company asked that the reclamation proceeding be dismissed, and then withdrew. ”