The Indianapolis daily herald., 1865-12-28

The proposed National Bankrupt Act. which
has been read twice ia the House II Represent
atiycs, and referred 10 a committee, i long
dociimenf. which would hll nine of these cob
unns In small type. The bill. a IL now stands.
giYes the present United STAT :. Court jurisdic-
lion IN al eases arising under the act. and
regulates the appointment, dVfEes and power
0f ofilcers who are 70 act I'm a Judicial capacity
under the supervision q the courts and sub
ieet 10 their order. the practice in all proceed
inEs Ia bankruptcy. and some other natter q
merely professional interest The bin then
provides for voluntary bankruptcy. on the
motion u the bankrupt himself; and involun-
tary bankruptcy. on the motion Ofthe creditors
of the bankrupt. The provisions are distinct
A. % each.
In involuntary bankruptcy, il l. provided
that any person residing within the juris1ic-
ton Of the United States owing debts prov ole
under tho act exceeding five hundred dollars
in amount. can apply by petition o. the judge
Of the Judicial district in which he rssides. set
ting forth his inability % pay his debts, and an
nexing a sworn schedule II his debts. their
amount and nature. with the nanes and resi-
denees II his creditor. anneNing also an inyen-
tory Of all property Of every kind in his pos
session or in which he has any interest and the
Hing of such petition i 70 be an act Of bank
ruptcy, and the petitioner shall b. adjudged a
bankrupt The Judge j. then 10 issue a war
rant directing the marshal to take possession
keep the same until the appointment Of an as
signee, and directing him to nOtify creditors TO
prove their debts. Assignees are to be chosen
by the greater part in value Of creditors. and
such assignees, when approved by the judge,
take possession Of the debtors property and all
books and papers relating thereto. with certain
slight exceptions.
All debts and liabilities existing, though not
matured orhot aseertained In amount at the
time Of the adjudication Of bankruptcy, may
be proved against the bankrupt's estate. And
all claims prOyable under the act. can be pros
eeu.ed in no other manner than under the act,
except for the mere purpose of deciding their
amount. All claims are 10 be presented on
oath, and are TO be investigated judicially in
case either their amount or validity Is dis
puted. The assignees have power also, under
the supervision Of the courts, to sell or redeem
property, and to take various prescribed mea-
sures for the advantage of the estate. and to
bring and to defend suits on behalf of the es-
tate
Wages due any operative, clerk, or house
servant, to an amount not exceeding fifty dol
lars are TO have priority over all claims OF
individuals. and be first paid in full. At the
final dividend, claims are 10 be paid in full i'm
the following order: First-Fees and costs Of
the proceedings. Second-All dues TO the
United States. Third-All dues to the State in
which the proceedings are pending. Fourth
Wages Of operatives. ETC., which have accrued
during the six months preceding the first no.
tlee of the proceedings as above mentioned
/ Fifth-All dues TO persons entitled TO priority
/ aside from the provisions of the act, under the
laws of the United States.
On due notice, and al the time and under the
conditions provided by the act, the final dis
charge is TO be given to the bankrupt from all
claims prOvable under the act: such discharge
/ to be withheld, or to be invalid If granted, in
case of any fraud or violation on the part OF
4 the petitioner of the provisions Of the act in
/ that behalf.
No second discharge is to be granted to any
bankrupt whose estate is insufficient to pay
seventy per cent. Of the claims against it,
without the consent of three-fourths, in value
of his creditors. And no third discharge can
4 be granted in any case. But a bankrupt who
has paid all claims existing at the time Of a
previous bankruptcy shall be entitled to a dis.
charge as though there had been no previou.
| application. Creditors may oppose the dis
charge, and have the grounds of their opposi
ton tried by jury. All debts created by action
of the bankrupt in fiduciary capacity are eX
empted from the operation Of the discharge
Similar provisions are made as TO bankrupt
ey proceedings on the part of partnerships anC
corporations.
The proceedings in involuntary bankruptc,
on the motion Of the creditors differ from
those in voluntary bankruptcy. simply i'm
their commencement. Whenever debtor
avoids legal process in an action for the re
coyery Of debt or demand proyable under
the act, or disposes of his property in fraut
Of his creditors: or whenever "A banker, mer
chant or trader fraudulently suspends anC
does not resume the payment of his CONNER
elal paper within fourteen days, and i'm a large
class Of enumerated cases, the debtor. OF
petition of his creditors to the amount Of ovel
two hundred and fifty dollars, shall be AL
Judged bankrupt p.
After the adjudication OF bankruptcy, three
fourths in value of the creditors can. undel
the direction and approval of the court, win,
up and settle the bankrupts estate in sucl
manner as they may agree upon, and the es
tate is then vested in trustees, the rights ant
duties Of the trustees being similar to those o
the assignees under the ordinary method o
procedure; and the discharge is to be i'm thu
same form and of the same effect as though tn
usual proceedings in bankruptcy were had
Ner York World.