Subdivision 1 of § 70 of the bankruptcy act of 1898 (30 Stat. at L. 565, chap. 541, U.S.C.omp. Stat. 1901, p. 3451) provides that the trustee of the estate of a bankrupt shall be vested by operation of law, as of the date of the adjudication, with the title of the bankrupt (a 1) to all 'documents relating to his property,' and subdivision 13 of § 1 of the act provides that "documents' shall include any book, deed, or instrument in writing.'
Appellees, as officers of the bankrupt company, asserted no adverse claim, but denied that the corporate records and stock books were 'documents relating to the property of the bankrupt,' and asserted that therefore the trustee in bankruptcy was not entitled to their possession.
We have no doubt that the books and records in question passed, on adjudication, to the trustee, and belong in the custody of the bankruptcy court, and, there being no adverse holding, that the bankruptcy court had power, upon a petition and rule to show cause, to compel their delivery to the trustee. Bryan v. Bernheimer, 181 U.S. 188, 45 L. ed. 814, 21 Sup. Ct. Rep. 557; Mueller v. Nugent, 184 U.S. 1, 46 L. ed. 405, 22 Sup. Ct. Rep. 269; Louisville Trust Co. v. Comingor, 184 U.S. 18, 46 L. ed. 413, 22 Sup. Ct. Rep. 293; First Nat. Bank v. Chicago Title & T. Co. 198 U.S. 280, 49 L. ed. 1051, 25 Sup. Ct. Rep. 693; Whitney v. Wenman, 198 U.S. 539, 49 L. ed. 1157, 25 Sup. Ct. Rep. 778.
This brings us to the real question in the case, and upon which the decision was rendered; namely, whether the district court of the United States in and for the southern district of New York had jurisdiction to entertain this particular proceeding and grant the relief prayed for.
In Ex parte Martin, Fed. Cas. No. 9,149, decided in 1842, Mr. Justice Story, sitting on circuit, held that the equity jurisdiction of the district courts, under the bankruptcy act of 1841 (5 Stat. at L. 440, chap. 9), was not confined to cases originally arising and pending in the particular court where the relief was sought, and where a creditor living in Massachusetts commenced suits in several states other than Pennsylvania, where proceedings were pending against the bankrupt for an adjudication, that an injunction would issue against the Massachusetts creditor, enjoining him from proceeding in the suits. Mr. Justice Story said:
'The language of the 6th section of the act is: 'That the district court in every district shall have jurisdiction in all matters and proceedings in bankruptcy arising under the act,' the said jurisdiction to be exercised summarily, in the nature of summary proceedings in equity. The act then goes on to enumerate certain specific cases and controversies, to what the jurisdiction extends (which I deem merely affirmative, and not restrictive, of the preceding clause); and then it extends the jurisdiction 'to all acts, matters, and things to be done under and in virtue of the bankruptcy, until the final distribution and settlement of the estate of the bankrupt, and the close of the proceedings in bankruptcy.' Now, this language is exceedingly broad and general; and it is not in terms, or by fair implication, necessarily confined to cases of bankruptcy originally instituted and pending in the particular district court where the relief is sought. On the contrary, it is not unnatural to presume that, as cases originally instituted and pending in one district may apply to reach persons and property situate in other districts, and require auxiliary proceedings therein to perfect and accomplish the objects of the act, the intention of Congress was that the district courts in every district should be mutually anxiliary to each other for such purposes and proceedings. The language of the act is sufficiently comprehensive to cover such cases; and I can perceive no solid ground of objection to such an interpretation of it.'
Section 1 of the bankruptcy act of 1867 (14 Stat. at L. 517, chap. 176), and § 2 of the bankruptcy act of 1898, are substantially identical as to the jurisdiction of the district courts sitting as courts of bankruptcy, as will appear from the following comparison:
Section 1 of the Bankruptcy Act of 1867.
That the several district courts of the United States be, and they hereby are, constituted courts of bankruptcy, and they shall have original jurisdiction in their respective districts in all matters and proceedings in bankruptcy, and they are hereby authorized to hear and adjudicate upon the same according to the provisions of this act. . . .
And the jurisdiction hereby conferred shall extend. . . .