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Entered according to Act of Congress in the year eighteen hundred ninety-seven, by


In the Office of the Librarian of Congress, at Washington, D. C.



Perhaps no other branch of the law more forcibly illustrates the constant and steady growth of remedial jurisprudence, and its adaptation to the ever changing conditions of business institutions and methods than that of receivership. The crowning feature of equity jurisprudence, in general, is its power under all circumstances of meteing out even and exact justice ex foro conscientiæ to all parties in interest, untrammeled by legal forms and distinctions. It draws to itself all parties and interests, and gives to each protection pendente lite, adjudicates and determines their equitable rights and enforces them to the extent of the property or fund subject to distribution. The basic principle in the law of receivership is in the power of the chancellor, though a receiver, to seize property, the subject-matter of litigation, preserve it pending suit, and finally distribute the same, or the proceeds, according to the equitable rights of the parties concerned. As it is the inefficiency of the common law remedies that affords a field for the exercise of chancery jurisdiction, so the latter is rendered more efficient, comprehensive and expeditious by the aid of the law of receivership. It has been said that receivership is of recent origin, but it is more. correct to say that its extended application is comparatively recent. The great increase in recent years in the number of private corporations, caused by the advantages of concentrated capital, has been instrumental in largely extending the law of receivership. This growth has been augmented by the difficulties encountered by the courts through the ordinary avenues and instrumentalities in affording adequate relief under the varied and conflicting interests involved. The difficulties thus encountered developed the law of corporate receivership, and its extension in this direction has had a stimulating effect in its application to other equitable proceedings, such as creditor's actions, partnership dissolutions and mortgage foreclosures.

It has been the purpose of the writer to indicate as carefully, briefly and consisely as possible the scope of the law of receivership as it now exists, in its application to the several proceedings in which it has been employed. At the same time it has been deemed of equal importance to indicate, in the same manner, the limita

tions and restrictions courts have deemed necessary to impose upon the exercise of jurisdiction in this regard.

An earnest effort has been made to discover and state the underlying principles by which the courts have been governed in establishing any given proposition or doctrine, in the belief that the mere abstract statement of the law upon any subject is more effective and of greater utility to the court and practitioner if in the same connection may be seen the principles upon which a decision is based, and the leading facts upon which it is made. But for this the notes herein would seem out of proportion.

It is a fruitless task, in some cases, to attempt to reconcile conflicting decisions, but generally a careful examination will show differentiating facts and circumstances in the cases or lines of cases, and this results in the establishment of general rules and exceptions which have been followed out herein as carefully as possible. Equitable principles are seldom matters of dispute, but the application of those principles to the varying facts and circumstances arising in litigation taxes courts and lawyers to the utmost.

If we have not been mistaken the profession demands in a textbook not only the carrying out of the principles above indicated, but also insists upon a reference to all the decided cases. It may be that the case requires, and the time at the lawyer's disposal justifies, a personal examination of all the adjudged cases upon the questions involved.

Having prepared this work along the lines thus indicated, the author trusts it may meet the requirements of the profession.

Chicago, Feb. 15, 1897.

J. W. S.



(e) Subsequent receivers, ancillary.



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