William R. Day

“ The Texas courts have the right to construe their own statutes, and their judgment in such matters is conclusive upon the Federal courts. We have, therefore, a case where the appointment of a receiver has been sustained by the highest court of the state under a general statute giving the right to appoint receivers in such cases and to take possession of the property of the corporation in the state. ”

“ It is submitted by the counsel for the petitioners that the effect of the appointment of the receiver in the state court was to violate the right of the Waters-Pierce Oil Company to carry on its business of an interstate character. It is true that the original proceedings which resulted in forfeiting the permit of the Waters-Pierce Oil Company to do business in the state of Texas resulted in a judgment forfeiting the permission theretofore given by the state, except the interstate business of the company. ”

“ The circuit court of appeals in this case, after reviewing the Texas cases, reached a different conclusion, and held that the rulings of the supreme court of Texas showed that the appeal and the giving of the bond had only the effect of suspending the order appointing the receiver, and that the court had not lost jurisdiction over the property by the bond given to supersede the order made. ”