The New York herald., 1867-03-05

ceding the adjudication OF baneruptcy snaii De
entitled to priority and shall be first paid In \
full; provided thai any debt proved BY any per-
son liable as ball. surety, guarantor or Otherwise
Tor the bankrupt shall not be PAID 70 .ne ps
proving the until satisfactory evidence snal oe
produced Of the payment OF such debt by euc person
SO liable, the share which such debt would ne en-
titled be paid court otherwise eid ior tine
benefit the party entitled thereto as the court may
direct At the expiration Of three months from he GATE
OF the adjudication OF bankruptcy IN any case OF 80
much earlier the may direct the court upon
request of the assignee shall call general meeting OF
the creditors of which due notice shall be gwen, ana
the assignee shall then report and exhibit TO the court
and the creditors lust and true accounts OF all his re-
ceips and payments, verified by his oath, ana ne sna
also produce and le vouchers for all pay Tor whcn
vouchers shall be required by rule OF the COURT ne
shall also submit the schedule Of the bankrups cred
ors and property as amended duly verified by the osnk
rupt as then ascsrtained Of the property recovered
and Of the property outstanding specifying the cause
OF s being outstandng also what debts or claims are
yet undetermined and stating what sum remains IN MS
hands. At such meet ng the majority In value OF the
creditors present shall whether any and what
part Of the net proceeds OF the estate after deducting
and retaining sum suicent to provide al undeter
mined claims which, by OF the distant residence
OF the creditor or for other sufficient have not
been proved and for other expenses and contingencies
shall be divided among the creditors unless at least
ono half in value OF the creditors shall attend such meet.
Of the assignee 70 determine In case dividend is
ordered the register shall within days after such
meeting prepare list Of creditors entitled to dividend
and shall calculate and set opposite 10 the Of each
creditor who has proved his claim the dividend to which
he entitled out Of the net proceeds Of the estate set
apart for dividend, and shall forward By mail to every
creditor statement Of the dividend which he is enti
tied and such creditor shall be paid BY assignee in
such manner As the court may direct
ceedngs shall be had at the expiration Of next three
months earlier II practicable, and third meeting OF
dividend then declared unless any action at law suit
in equity be pending unless other estate ef
ecs Of the debtor afterward to the hands Of the
assignee In which case the assignee shall rs
may be- convert such estate effects into money and
within two months after the shall be converted
the shall be divided in aforesaid. Further
dividends shall be made like often
sion requires and after the third meeting Of creditors
no further meeting shall be called unless ordered by the
assignee any outstanding debts or other property due or
belonging to the estate which cannot be collected and
received by the assignee without unreasonable ncon
venient delay expense, the assignee may under the
direction Of the court sell and assign such debts other
property in such manner as the court shall order No
dividend already declared shall be disturbed by reason OF
debts being subsequently proved but the creditor prov
ing debt shall be entitled to dividend equal to
already received by the other creditors before
any further payment is made to the latter. Pre-
paratory to the final dividend the assignee shall SUBJ
init his account to the court and file the same and give
notice to the creditors Of such fling and shall also give
that he will apply for settlement Of his
and for discharge from all liability assignee time
TO be specified in such notice. and such time the court
shall audit and pass the accounts of the assignee and
such assignee SHALL II required by the court be exam
ined as 70 the truth Of such account and f found cor
assignee TO any creditor Of the bankrupt The court
shall hereupon order dividend Of the estate and effects
OF such part thereof IL t among such of the
creditors have proved their claims proportion
the respective amount OF their said debts In addition
70 all expenses necessarily incurred by him In the
ton of his trust In any the assignee shall be
titled allowance for his services in such all
received and paid out by him therein for any
not exceeding thousand dollars five per centum
thereon for any larger exceeding FIVE thousand
dollars. two and half per centum the
FIVE thousand dollars and If at any time there shall
be in his hands a sufficient amount Of money to
defray the necessary expenses required for the fur
ther execution Of his trust. he shall not be obliged
proceed therein until the necessary funds adj
vanced or satisfactorily secured to him r. by acci-
dent mistake other cause, without fault Of the
signec either both Of the said second third meet
ings should not be held within the times limited the
court may, upon motion Of interested party order
such meetings. with like effect validity of the
the order for dividend under this section the following
claims shall be entitled TO priority preference and to
be first paid in full in the following order:-
Firs-Thc fees costs and expenses OF SUITS and the
several proceeding in bankruptcy under this ac and for
the custody Of property, as herein provided.
Second-An debts due to the United States, and all
taxes and assessments under the laws thereof
Thrd-An debts due 70 the State in which the pro-
ceedings in bankruptcy are pending, and all taxes and
essments made under the laws OF such State
Fourth-Wages due to any operative, clerk or house
servant, TO amount not exceeding $50, labor per-
lcation Of the notice OF proceedings in bankruptcy
fifth-All debts due to any person who, by the laws
IN xe ~ 20
passed: always provided, that nothing contained in
this act shall interfere with the assessment and colec
ton Of taxes by the authority Of the United states
or any State.
or THE BAsKRurr's DISCHARGE AND rrs EFFECT
SEC 20. And bc 1t further enacted, That at any time
after the expiration OF six months from the adjudication
Of bankruptcy II debts have been proved against
the bankrupt IL assets have to the hands Of
the assignee at any time after the expiration OF sixty
days and within year from the adjudication Of bank
rupcy the bankrupt may apply TO the for dis
70 m BY to ali $
proved their debts, and by publication At least
week in such newspapers the court shall Designate
due regard being had 10 the general circulation Of the
in the district, in that portion Of district In
which the bankrupt and his creditors shall reside to
appear on day appointed Tor that purpose and shox
bankrupt No discharge shall be granted or granted
be valid If the bankrupt has wilfuy sworn falsely in
tory upon any examination the the pro-
ceedngs bankruptcy In relation 70 any material facts
concerning his estate or his debts or TO any other
rial fact If he has concealed any part OF his estate
effects any books writings relating thereto il
he has been guilty Of any fraud or negligence in the
care, custody delivery to the assignee the property
belonging him at tho time Of the OF his
petition and inventory, excepting such property Is
permitted to retain under the provisions Of this act or
IL he has caused, permitted suffered any loss
destruction thereof IT, within four months before
the commencement of such proceedings, be has pro
cured his lands goods money chattes be attached
sequestered or seized on execution; or H. since the
sage of this act he has destroyed mutated altered
iasihed any of his books documents papers writings
OF any false fraudulent entry In any book OF account
or other document with intent to deaud his creditors
or has removed caused TO be removed part OF his
property from the district with intent 70 deiaud his
credtors or II he has given any fraudulent preference
contrary 10 the provisions OF this act, made any
fraudulent payment, gift, transfer, conveyance or
assignment Of any part Of his property, or has
lost any part thereof IN gaming, or has ad-
mitted false fictitious debt against his
estate; or H. having knowledge that any person has
such false nctiious debt he has disclosed
the game 70 his assignee within month after such
knowledge; or H. beng a merchant or ,radesman,
he has not subsequently to the passage Of this kept
proper books OF account; he. person In his
behalf has procured the assent OF creditor to his dis
charge or Influenced the or any creditor any
stage Of proceedings BY any pecunAry consideration
or oblaation he has In contemplation OF becoming
bankrupt made any pledge, payment transfer assign
eut or OF any part OF his property directly
or indirectly absolutely condtonay for the purpose
OF preferring any creditor or person having claim
against him. who Is may be under liability for him.
OF for hc purpose o preventing the property from COM
ing into the hands Of the assignee OF being distb-
ued under this In satisfaction OF his debts or II he
has been convicted Of any msdemeanor under this act
or has been guilty OF any fraud whatever contrary the
true intent OF this act and before any discharge
granted the bankrupt shall take and subscribe
70 the effect thar he has not done, suffered been rrvy
70 any act, matter or thing specified IN this act