The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-03-05
The General Bankrupt Law.

From the Herald.
The Thirty ninth Congress has left behind it
one legacy for which the people will be CRATE
full. The passage of the act to establish a
uniform system of bankruptcy throughout the
United States will afford general satisfaction
and prove valuable boon to the country
While some of the features of the law--for its
final approval by the Executive may be re-
garded as certan-may require alteration or
amendment, its enactment in an Imperfect
shape will be universally conceded to be pre-
ferabe to it's defeat.
The jurisdiction in bankruptcy cases is given
by the act to the several District Courts of the
United States, with the United States Circuit
Courts acting in supervisory capacity as
Courts of Equity. The Judges of the District
Courts will be assisted in the performance of
the duties imposed upon them by Registers in
bankruptcy, who are required to be counsel
lors of those Courts, or of some of the Courts
of Record of their several States. The power
of the Registers is limited, and provision is
made for reference of disputed questions to the
District Court Judges, and for appeals from
the District Courts to the Circuit Courts, and
from the latter, in cases where the matter in
dispute shall exceed two thousand dollars, to
the Supreme Court of the United States
There are two kinds of bankruptcy contem-
plated by the act-voluntary and involuntary.
In the former any person residing within the
jurisdiction of the United States, owing over
three hundred dollars and finding himself in
solvent, may apply by petition to the judge of
the district in which he has resided for the six
months preceding the date of the petition, or
for the longest period during such six months,
and shall thereupon be declared a bankrupt.
The creditors, having been properly notified
by the court, meet together and appoint one
or more assignees of the estate of the debtor
the choice to be made by the greater part in
value and in number of the creditors who
have proved their debts or in case of failure
to agree, then by the District Judge, or where
there are no opposing creditors, by the
Register.
The whole affairs of the bankrupt pass into
the hands of the assignees, who have full
powers granted them necessary for the collec-
ton of all debts and the final adjustment and
closing up of the estate. Stringent regula-
tions are made for the proper deposit and safe
keeping Of all moneys received from the estate;
and where delay is likely to occur from liti-
CATION in the final distribution of the..assets
the Court is empowered to direct their tenn
porary investment. The bankrupt is liable at
all times to be called up for examination on
oath upon all matters relating to the disposal
or condition OF his property or to his business
transactions, and, for good cause shown, his
as a witness in the case.
In the distribution of the bankrupt's estate
dividends are to be paid as agreed upon by a
majority in value Of the creditors, from time
to time, at three months intervals but the
following claims are first to be paid in full
First the fees, COSTS and all expenses under
the Bankrupt act; second, all debts, taxes, and
assessments due to the United States; third.
all State debts, taxes, and assessments; fourth
wages due to any operative, clerk or house
servant to an amount not exceeding fifty dol
lars for labor performed within six months
preceding the bankruptcy; fifth, all debts due
to any persons who are or may be entitled to
preference by the laws of the United States.
The voluntary bankrupt is entitled to his
discharge provided no fraud is proved against
him, at any time from sixty days to one yea
after adjudication ofsbankruptcy; but the proc
or discovery of any fraud or concealment de
prives him of the right to discharge. m
person who has once received his discharge !
to be entitled again to become yoluntar.
bankrupt, unless his estate is sufficient to pa.
seventy per cent of his debts, or unless three
fourths of his creditors assent in writing to M
bankruptcy. Preferences and fraudulent con
veyances are declared void by the act, an
suitable provisions are made for the vOluntar
bankruptcy OF partnerships and corporations
The exemptions under the law are as TO
loWs:-
The necessary household and kitchen furn
ture and such other articles and neeessaries
such bankrupt as the assignee shall designal
ond sci apart, having reference in the amour
10 the family condition. and circumstances
the bankrupt, Dut altogether not 10 exceed
value, in any case, the sum OF S5OOi aud also u