The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1866-06-13
Tho Rankrupt BIl.

The following is summary of the BANK
rupt bill, as it passed the House OF Represent
atives:
The first section constitutes the District
Courts of the United States Courts of BANK
ruptcy.
The second section gives the United States
Circuit Courts general superintendent and
jurisdiction OF all cases and questions arising
under the act.
Sections to inclusive. relate to the ad-
ministration OF the law in Courts OF Bank
ruptcy. an
Sections s, 0 and 10 refer to appeals and
practice.
The eleventh section provides that if any
person residing within the jurisdiction OF the
United States, owing debts over $500, shall ap-
ply by petition to the judge Of his judicial dis
trict, setting out his inability 10 pay his debts
in full, and his willingness to surrender his es-
tate for the benefit of his creditors, the fling
Of which shall be an act of bankruptcy, such
petitioner shall be adjudged bankrupt A
warrant shall then be issued by the Judge, di-
rectlng the marshal OF the district to take DOS
session of the estate and keep the same until
the appointment OF an assignee. Notice is
then to be given to the creditors to hold a
meeting and choose one or more assignees.
Sections II to Is, inclusive, define, in great
detail, the duties of the assignees.
Sections 10 to "a. inclusive, relate to debts
and the proof OF claims.
Scctl'n 25 provides for the sale of perisha-
bic property.
occ..on ~ provides foI the examination of
bankrupts before the court, and exemrts them
from liability to arrest during the pendency Of
the proceedings in bankruptcy in evil actions.
Sec. u relates to the distribution fthe bank
rupt's estate. All creditors whose debts are
duly proved and allowed are to be entitled to
share in the bankFupt's property pro rata with
out priority or any preference whatever, except
that wages due from him t. any operative,
clerk, or house servant to an amount not ex-
ceeding $50 for labor performed within six
months next preceding the adjudication OF
bankruptcy, shall be entitled to priority and
shall be first paid in full
Section 2S provides that in the order for a
dividend the following claims are to be entit-
led to priority Of preference, and to be first
paid in tul in the following order: First
fees, costs and expenses of suits, and tor the
custody of property. Second, ali debts due to
the United States and all taxes and assess
ments under the laws thereof Third, all
debts due to the State in which the proceed
ings in bankruptcy are pending, and all taxes
and assessments made under the laws OF such
State. Fourth, wages due to any operative,
clerk, or house servant, to an amount not ex-
ceeding $50, for labor performed within six
months next preceding the first publication of
the notice ofproceedings in bankruptcy.-
Fifth, all debts due to any persons who by
the laws OF the United States are, or may be,
entitled to a priority or preference; in like
manner as ii this act had not been passed.
Always provided that nothing contained in the
act shall interfere with the assessment and
collection of taxes by the United States or any
State. f 4rt7h ...........-r
Section 20 and the five following sections
relate to the bankIupt's discharge and its eff
s% -1..n 80 n. ~
bankrupt has in all things conformed to his
duty under this act and that he is entitled,
under the provisions thereof to receive DIS
charge, the Court shall grant him a discharge
from all his debts except as hereinafter pro-
vIded, and shall give him a certificate thereof
under the seal OF the Court. ..
Section 35 declares preferences and fraudu-
lent conveyances void.
Sections SO, 81 and IS relate 10 bankruptcy
OF partnerships and corporations and to dates
and depositions.
Sections 80 to AZ, inclusive, provide for the
case of involuntary bankruptcy, departure
from the State, avoiding the service Of legal
process, removal or conceaIment OF property,
fraudulent assignment OF property, arrest and
detention for debt Tor period OF seven days;
confession OF judgment or suspension OF pay
ment of commercial paper for fourteen days
shall be deemed an act OF bankruptcy.
Section 43 provides Tor superseding
bankrupt proceedings by arrangement.
Section A p.ovideS penalties against bank
rupts for concealment of property, lalsifying
books or papers, fraudulent assignment or
conveyance OF property, spending in gaming,
| permitting a fictitious debt to be proved
against him, obtaining goods on credit fiard-
| uIently within three months of the commence
| ment of proceedings in bankruptcy; these are
to be deemed misdeTaeanors, and puni he'd by
Imprisonment, with or without hard labor, tor
a term not exceeding three years.
| Sections 45 and 40 provide penalties against
| officers in administering the law. e
Section II regulates fees and costs.
Section 4S regulates stamp duties on petit
| tio1s, warrants, &c. aa
Sections 49 and so define the meaning Of
terms and the computation oftime.
Section 81, and last, enacts that this act shall
commence and take effect as to the appoint
ment OF the officers created hereby end the
| PRONUNCIATION OF rules and general orders
nom and after the date of its approval; pro-
vlded that no petition or Other proceeding
under this act shall be filed, received or COM
menced before the first day oi November,
| 1856.