In re Empire Finance Corp.

The matter of voting the stock owned by the bankrupt corporation, the Empire Finance Corporation, in the West American Finance Company, is again before me. I previously denied a petition to instruct the temporary receiver appointed by me to vote the stock in a certain manner. Apparently this proceeding how before me was brought because counsel did not understand the reason for my former ruling. I was at that time of the opinion, and after a subsequent review of the authorities the earlier view is only strengthened, that Harry J. Edwards is the duly elected and qualified trustee in bankruptcy of the bankrupt corporation and that I have no authority either to instruct a receiver previously appointed by me or to appoint a receiver to take possession of the property of the bankrupt estate. The trustee in bankruptcy was regularly elected and qualified before the issuance of the writ of supersedeas, and he had already .taken title to the assets of the bankrupt estate and was entitled to the possession and custody thereof. Section 70 of Bankruptcy Act (11 USCA § 110). The issuance of the writ of supersedeas had no effect upon proceedings prior to its issue. Its effect was to stay the…