John McLean

“ But in such a proceeding, notice to the creditors and a schedule of debts, as well as assets, are required by law.
Under the laws of Pennsylvania a debtor may assign his property for the benefit of his creditors, giving a preference to some of them over others. This may be done by the common law. The assignment made by the late Bank of the United States specifies different classes of creditors, but none are excluded from the benefits of the assignment.
The assignees admit, in their plea, that they have vested a large amount of assets to await the determination of certain suits still pending. ”

“ The practical consequences are easily foreseen. They must give public notice to creditors to claim the same fund in two courts. A portion of the creditors will prove their debts in the Common Pleas, and the remainder in the Circuit Court. Some may claim in both places. A creditor excluded by one tribunal may apply to the other. The courts may readily differ in their views of the facts presented by the accounts, and the principles regulating them. One court may surcharge with one amount, and the other with a different amount. ”

“ We suppose that it could not be contended, that fraud or collusion might not be shown to avoid the proceeding before any tribunal having jurisdiction.
No suit seems to be pending in the Common Pleas. The action of the assignees appears to be voluntary, for their own justification, and not in obedience to the order of the court. By the statute, any person interested may, on application to the court, obtain a citation to the assignees to appear and answer. ”

“ The statutes adopt some of the principles of chancery, but do not invest the court with the powers of a court of equity which are necessarily exercised in administering trusts.
It is not strictly a proceeding in rem. The proceeding is intended to adjust the rights of debtors and creditors of the bank, beyond the jurisdiction of the state of Pennsylvania. Citizens residing, perhaps, in a majority of the states of the Union, are debtors or creditors of the bank. ”

“ And if such opportunity had presented itself, the complainant, being only one of the numerous persons concerned in the trust, could not have removed the settlement of the accounts of the trustees from the Court of Common Pleas of Philadelphia to the Circuit Court of the United States. ”

“ Jenness, 7 How., 612; Campbell v. Emerson, 2 McLean, 30; Embree v. Hanna, 5 Johns. (N. Y.) , 101; Holmes v. Remsen, 20 Id., 229; Hall v. Dana, 1 Aik. (Vt.) , 381; State v. Yarborough, 1 Hawks (N. C.) , 78. ”