Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-03-07
THE BlNKRUPF Law.

Hieatisiii l.-a s,1fss9i7 = ~ 81
The 4r1 - iEsthblf ssll an UnifoEmrSys,
tenn OF Bankruptcy ThrOUghOutIhe
BAttea eSs&tes-<NRhaGrthe BiII fs4
What1tPr0vides.l ? sa,eli ts4 s.i5 % befs
The substance of this most important
bin just passed by the Senate and House.
anCIWhieh Teceivedrthe Presidents appnev-
al, will be found as follows in the summary
Seeiioi7I ! estab1ishea the several District
Courts of the United States as courts of
bankruptcys iP addition 10 the other orig
naljurisdiction they now have.
Section, 2giyes. the Circuit Courts, equity
power 70 supervise the proceedings Of the
District Courts In bankruptcy litigation
and affairs. and In addition 20 this power
giv"s them concurrent Jurisdiction in the
same m1ttefs. : SfT4 Il AEI}14 = Fl
Section 3 provides for the appointment
In each Congressional District, upon the
nomination of the Chief Justice of the
SUPREME CDufty Of one OF more re%stersto
duty it shall be 10 assist The District Judges
in che perfofhaiIee of llatyl IN sba6krup6cy
cases. Bonds in $1,000, no interest in any
of the suits, and ability to- take the iron
clad oath, are the prerequisites of each
section 4 makes it the registers duty to-
adjadicate upon,a receive surRenders in and
presideiin bankruptcy proceedings He Is
to compute property. dividends assign pro.
rata, shares to creditors. but bars him from
cemmittiHgq for contempt or in, acting in
cases that 60 supnn appeai5 &c fioolss al b. -
Sections 6. z, 8, 8, aud 10 provide for the
formula Of legal iprpeeedin the Courts
ofo Bankruptcy,a q reeapitQlation, of the
practice now in vogue in other litigation
-Sectieu, IL makes $500 the limit OF debts
on which to declare voluntary bankruptcy,
requires the bankrupt to be or tO. become a
citizen of the United, States, forbidsA
transfer. of property during pendency of
proceedings, and demands full exhibit of
debts and assets on the part of the volun-
tary bankrupt. o. - r't-s'A
Sections II, lS and ID provide that the
action In bankruptcy shall 90 on, shoulG the
bankrupt die, the same as If he were IN esse !;
that the creditors shall appoint an assignee
or assignees of the debtofss estates subject
to the approval of the District Judge; that
everything be tnrned over to the assignee,
whether of substance or account for dis
tributi0ni except: That there; shall be ex-
cepttd from the operation of tie prov isions
of this section the necessary household aud
kitchen furniture, and such other articles
and necessaries of such bankrupt as the
said assignee shall designate aud set apart.
having reference in Ihed amount to the
family, condition, and circumstances of, the
bankrupt, but altogether not to- exceed in
value in any case, the sum of $500; and
Also the wearing apparel of such bankrupt
and that of his wife and children, and the
uniform; arms, and equipments of any per-
son who is or has been a soldier in the mill
tia or in the service of the United States;
and such other properly az TOW is or here
after shall be. exempted from attachment
or seizures or levy onexeeution by the laws
of the United States, and such other prop
efty, not iticluded i'm the foregoing excep-
tions, Rssgis exempted from levy and sale
uponlexeeution or other process or order of
court, by the laws of the State In which
the bankrupt has his domicile at the time OF
the e0mmencen en1ent OF the proceedings in
bankruptcy to- amount, not exceeding
that allowed by such State exemption laws
the foregoing exceptions shall operate as a
limitation upon the convey ancek Of othe
property Of the bankrupt to his assignees,
and in no case shall tha property Ehereby
excepted pass. toJthe assigneess or the title
of the bankrupt thereto be impaired or
affected by any of the provisions of this
act; and the ideterHihatiofkof the assignee
In the matter shalls on exception taken, be
subject TO- the final decision of the said
fSecti0hs15, Is, II and I&o give the as
asignee, full power to reeoyer the property
soever held; require him to nciassify gand
separate. the goods or other etfectsy empow-
er the assignee to choose arbitrators in
matters ef,disputed possession, and provide
for the supervision over and power to re-
move the essig4ees BY the District Judge
Sections fs, 20 and 81, ordaif tFat claims
be proved IN the same. manner as now
against the estate of deceased persons
provide fHr, sseta offs in mutual debts be-
tween debtor and claimants; forbid suits
AGAINST the bankrupt by those creditors
proving their claims, aud provide that if
any bankrupt shall, at the time of adjudi-
cation. be liable upon any bill of exchange,
promissory note, or other obligation in re-
epect of distinct contracts as member ol
two or more firms carrying on separate and
'GiistiLct trades, and having distinct estates
to be wound up in bankruptcy, or as sole
Grader and also as a member of a firm, the
circumstance that such firms are in whole
or in part composed of the same indiVid-
uals, or that the sole contractorlis also oont
of the joint contractors. shall not prevent
proof and receipt of dividend in respect Of
such distinct contracts against the estates
4 respectively liable upon such contracts.
rsilaSeetiens %, % and "a require verifica-
srtionI by oath of all claims by creditors, anC
it a eerporation,bbyt the proper officers toI
bfthat purpose, to be filed before the Regis
II ter, orr il, ina foreign country. before the
o. Consul or other diplomatic officer nearest
adjacent, and that Investigation can be and
must be made by the Judge in case of al
doubtful claims, -: e.. -
'1 Section 25 orders the sale and the holding
easfor distribution by the assignee of all per-
ishable property, the title to which is moi
In dispute.
-sI Section 26 provides E5r the examination
10 Of the bankrupt by the court, either at iti
own option Tor at the requestof the assignee
al into all allaciFcumstances sandstatements of the
bankrupt, who is punishable for contemp p
fer noncompliance with the order for ex
1amination. and Tor good cause shown th'
wife of the bankrupt may be called anC
Similarly examined. ~ 30 2a5 "a h9s
''"'' Section 2S s1bdivides priority to claim
las follows: IF Sfst, Servants wages unde
p $50. Second, All the creditors pro rata
Without any preferences either from amouh
.Eor date aof 1elaimsy except that in case
wherein the, bankrupt has become bail
Ba surety or guaraHtor, for another, the com
,pliance of the latter with the conditions
must be shown before the claim is allowed
-,de,lAt the expiration of three months iron
tvothe date of the adj Indication of bankruptc!
81 in any case, or as much earlier as the cour
may direct. the court, upon request of tn
j assignee. shall call general meeting of tn
80 creditors. OF. which iduelnotiee shall be Civ
en-, and the assigne shall then report,p an,
exhibit to the court and to the creditors jus
aud true accounts of all his receipts an
payments, verified by his oath; and h
shali also produces and file vouchers for al
n, pay ments for which vouchers shall be re
: quired by any rule of the court; he shal
-qs also submit the schedule of the bankrupt
sno la creditors and properly as amended, dull
- verified by the bankrupt, and statemen
-sT Of the W hole estate of the bankrupt as the
: ,asceftained, of the property recovered an
of the property outstanding, specifying tn
cause Of its being, outstanding, also wha
debts or claims are yet undetermined, an
stating what sums remain in his hands. "A
such meeting the majority in value of tn
creditors present Shall determine whetEe
any and what part of the net proceeds &