, 1867-07-19

may direct q reference to register In DaukruptS
cy, or other suitable person, to take and certify
such examination, and may compel the atten-
dance of witnesses, the production Of hoods and
papers, and the giving of testimony in the same
manner as in suits in equity in the Circuit
| Court.
INVOLUNTARY BANKRUPTCY.
Sec. 80. And be IL further enacted, That any
person residing and owing debts as aforesaid,
who after the passage of this act, shall depart
from the State, district, or Territory, of which
be is an inhabitant, with intent to defraud bis
creditors, or, being absent, shall, with such in>
tent, remain absent or shall conceal himself to
avoid the service of legal process in any action
for the recovery of debt or demand provable
under this act; or shall conceal or remove any
of his property to avoid its being attached, ia,
ken, or sequestered on legal process; or shall
make any assignment, gift, sale, conveyance or
transfer of his estate, property rights or credits,
either within the United States or elsewhere,
with intent TO delay, defraud or hinder his cred
itors; or who has been arrested and held in Gus
tody under or by virtue of mesne process of ex-
ecution, issued out of any court of any state,
district, or Territory, within which such debtor
resides or has property, founded upon demand
in its nature provable against bankrupt's es-
tate under this act, and for a sum exceeding one
hundred dollars, and such process is remaining
in force and not discharged by payment, or in
any other manner provided by the law OF such
State, district, Territory, applicable thereto,
for period of seven days or has been actually
imprisoned for more than seven days In civil
action founded on contract, for the sum of one
hundred dollars upwards or who, being
bankrupt iDsovent, or in contemplation of
bankruptcy or insolvency, shall make any pay
ment, gift, grant, sale, conveyance, or transfer
of money, or other property, estate, rights, or
credits, or give any warrants to confess judg-
ment, or procure or suffer his property to be
fal-a .KL
preference to one or more of his creditors or to
any person or persons who are or may be liable
for him as endorsers, bail, suretes, or otherwise
or with the intent, by such disposition of his
property, to defeat or delay the operation of this
acti or who, being banker, merchant or ira.
der, has fraudulently stopped or suspended and
not resumed payment of his commercial paper,
within period of fourteen days. shall be deem
ed to have committed an act of bankruptcy, and
subject to the conditions hereinafter prescribed,
shall be adiudged bankrupt, on the petition of
one or more of his creditors, the aggregate of
whose debts provable under this act amount to
atleast two hundred and fifty dollars, provided
such petition is brought within six months after
the act of bankruptcy shall have been commit
ted. And if such person shall be adjudged
bankrupt, the assignee may recover back the
money or other property so paid, conveyed, sold,
assigned, or transferred contrary to this act pro-
vlded the person receiving such payment or con-
veyance had reasonable cause to believe that
fraud on this act intended, or that the debt
or was insolvent, and such creditor shall not be
allowed to prove his debt in bankruptcy
Sec. 40. AHd be IL further enacted, That upon
the filing of the petition authorized by the next
preceding section, if it shall appear that sufi.
cient grounds exist therefor, the court shall dis
rect the entry OF an order requiring the debtor
TO appear and show cause, at a court of bank
ruptcy 10 be holden at time to be specified in
tne order, not less than FIVE days from the SER
vice thereof, why the prayer of the petition
should not be granted; and may also, by its in
functions, restrain the debtor, and any other
person, in the meantime, from making any trans
fer or disposition of any part of the debtors
property not excepted by this act fiom the ope-
ration thereof and from any interference there.
with and if it shall appear that there ia proba-
BILE cause for believing that the debtor is about
to leave the district, or to remove or conceal his
goods aud chattles or his evidence of property
or make any fraudulent conveyance or dspos-
ton thereof, the court may issue a warrant to
the marshal of the district, commanding him to
arrest the alleged bankrupt and him safely
keep, unless he shall give bail TO the satisfaction
of the court for his appearance from time to
time, as required by the coIrt, until the deci-
sion Of the court upon the petition or the further
order of the court, and forthwith to take posses
sion Professionally Of all the property and effects
of the debtor and safely keep the same until the
further order Of the court. A copy of the peti>
tion and Of such order to show cause shall be
served on such debtor by delivering the same to
him personally, or leaving the same at his last
or usual place OF abode or, if such debtor can
not be found, or his place of residence ascer,
tained, service shall be made by publication, in
such manner as the judge may direct No fur.
ther proceedings, unless the debtor appear and
consent thereto, shall be had until proof shall
have been given, to the satisfaction of the court
of such service Of publication and if such proof
be not given on the return day of such order
the proceedings shall be adjourned and an order
made that the notice be forthwith so served or
published.
Sec. Al. And be h further enacted, That on
such return day or adjourned day, if the notice
| has been duly served or published, or shall he
waived by the appearance aud consent of the
debtor, the court shall proceed summarily 10
hear the allegations of the petitioner and debtor
and may adjourn the proceedings from time to
| time, on good cause shown, and shall. If the
debtor on the same day so demand in writing,
order trial by jury at the frst term of the cop1t
at which jury shall be in attendance to ascer,
tain the fact of such alleged bankruptcv. and IL
/ upon such hearing trial, the debtor proves 40
the satisfaction Of the court or of the iurv a The
case may be, that the facts set forth in the ns,,
tion are not true, or that the debtor has Maid
ana ana satlshed all liens upon his property iu case
]
OF the proceeding, the proceedings shall be dis.
missed and the respondent shall recover costs,
Sec. AZ. Aad be IL further enacted, That if the
facts set forth In the petition are found o he trpe
or if default be made by the debtor 20 appenr
pursuant 10 the order, upon due proof of service
thereof oelng made, the court shall adjudge the
debtor to be bankrupt, and, as such, subject
10 the provisions OF this act, and shall forthwith
issue warrant to take possession Of the estate
OF the debtor The warrant shall be directed
and the property Of the debtor shall be taken
thereon, and shall be assigned and distributed
10 the same manner and with similar proceedings
to those hereinbefore provided for the taking
possession, assignment, and distribution of the
/ property Of the debtor upon bis own petition.
The order OF adjudication of bankruptcy shal;
require the bankrupt forthwith, or within such
number OF days, not exceeding i've after the date
OF the order or notice thereof, as shall bv the
order be prescribed, to make and deliver. or
transmit by mail, postpaid, to the messenger,
schedule Of the creditors and an inventory of his
estate in the form and verified in the manner re-
quired of petitiouing debtor by section thirteen
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