Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-01-05
The New Rankrupt Bri.

The New bankrupt Bill.
| From the Cincinnati Enquirer
The proposed National Bankrupt Act,
| which has been read twice in the House OF
| REPRESENTATIVES, and referred 10 coumit-
tee Is a long document, which would iill nine
of these columns in small type. The ball,
az it now stands, gives the present United
| States court jurisdiction in all cases arising
| under the act, and regulates the appoint
ment. duties and powers Of officers who are
| to act in judicial capacity under the super
vision Of the courts and subject to their or
der, the practice in all proceedings IN bank
ruptcy, and SONG other matters OF merely
professional interest. The bill then provides
| for voluntary bankruptcy, ON the motion OF
the bankrupt himself; and involuntary
bankruptcy, on the motion OF the creditors
of the bankrupt The provisions are dis
| tinct as TO each.
In involuntary bankruptcy il is provided
that anv person residing within the juris-
diction of the United States, owing debts
provable under the act exceeding 5000 in
amount, can apply by petition to the Judge
of the judicial district in which he resides,
| setting forth his inability to pay his debts,
| and annexing a sworn schedule Of his debts,
| their amount and nature, with the names and
residences Of his creditors, annexing also an
| inventory Of all property Of every kind IN
| his possession. or in which he has any inter
est and the fling Of such petition is 10 be
| an act Of bankruptcy, and the petitioner shall
be adiudged bankrupt. The Judge is then
To issue warrant directing the Marshal 70
take possession Of all the debtors property
of every kind, and keep the same until the
appointment Of an assignee, and directing
| him to notify creditors 10 prove their debts.
| Assignees are to be chosen by the greater
part in value Of creditors, and such assignee,
when approved by the Judge, take posses
sion Of the debtors property and all books
and papers relating thereto, with certain
| slight exceptions. ..-a.
| Al debts and liabilities existing, though
not matured or not ascertained in amount az
the time Of the adjudication Of bankruptcy,
may be proved against the bankrupts estate.
And all claims provable under the act can
| be prosecuted in no other manner than under
the act. except for the mere purpose OF de
Gliding their amount. AL claims are to be
presented on oath, and are TO be investigated
| iudicially in case either their amount or va
Iidity is disputed. The assignees have
power also, under the supervision of the
courts, to sell or redeem property and %
| take various prescribed measures for the ad-
vantage Of the estate, and TO bring and De
fend suits on behalf Of the estate.
Wages due any operative, clerk OF house
servant, 10 an amount not exceeding MY
dollars, are to have priority over all claims
of individuals, and TO be first paid IN NIL.
At the final dividend claims are to be paid
in full in the following order; First, ices
and costs Of the proceedings. Second, all
dues to the United States. Third, all dues
TO the State in which the proceedings arr
pending. Fourth, wages Of operatives, etc,
which have accrued during the six months
preceding the first notice Of the proceeding
a. above mentioned Filth, all dues TO per
sons entitled 10 priority, aside from the pro-
visions Of the act, undsr the laws OF the
United States.
On due notice, and at the time and under
the conditions provided by the act, the final
discharge 10 be given 70 the bankrupt from
all claims provable under the act such dis
charge to be withheld, or to be invalid u
granted, in case Of any fraud or violation OF
i the part Of the petitioner Of the provision OF
the act in that behalf
No second discharge is 10 be granted To-
any bankrupt whose estate Is insufficient 10
pay seventy per cent. Of the claims pgaiiis'
hin witbont the consent of three-fourths, 10
vaIue of his creditors. And no third dr.
charge can be granted In any case. Bet q
bankrupt who has paid all claims existing "a
the time OF a previous bankruptcy shall BE-
entitled to a discharge as though there bad
been no previous application. Crcditors may
: oppose the discharge, and have the ground
other opposition tried by jury. All deLts
created BY action Of the bankrupt in q fidu-
ciary capacity are exempted from the opera
ton OF the discharge. : r 80.
Similar provisions are made az 20 bank
ruptcv proceedings on the part Of partner
ships and corporations.
The proceedings in Involuntary Dank-
ruptcy on the motion Of the creditors differ
from those in voluntary bankruptcy sim
ply In their commencement. Whenever q
debtor avoids Legal process IN IA action for
the recovery OF ,lebt or demand, proyabls
under the act, or dispos'ss Of his property IN
fraud Of his creditors; or whenever bank
: er, merchant or trader fraudulently als-
5 ponds, and does not resume the payment o
: his commercial paper within fourteen days
y and in large class Of enumerated cases, tn
D debtor, on petition Of his creditors 20 Tn
: amount Of over two hundred and hity dol
I lars. shall be adjudged a bankrupt.
r After the adjudication Of bankruptcy
!. three-fonrths in value OF the erotltors can
n under the direction and approval OF IN
n Court, wind up and settle the bankrupt
Il estate In such manner 81 they may agres
< uuon. and the estate Is then vested IA srus
r tees. the rights and duties Of the trustees BE-
D. ing similar 10 those Of the asignees unde
e the ordinary method Of procedure; and tn
n discharge Is 20 be in the same form, and {
/. the same effect a. though the usual proceed
ings in bankruptcy were had.-NeU for
World. .. 81,