The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-11-01
Important Decision--Judge BOND De
strovs Mr.. Hughes's Bankrupt Law.

stroys Mr. Hughes's Bankrupt Law
In the Circuit Court Of the United states
in this city yesterday Judge BOND rendered.
4 decision which is likely to excite srea.
deal Of interest in this State, at least, ana
,,erhaps in Others. He cut up Mr.. HU'HEss
amerda,ory bankrupt act by the roots and laid
down the law in an opinion when we trust
will teach USDESwooD 4 much.nccded iessoh'
14c say .Juagc BoNp cut up Mr.. Hr6HESs
hankr,,u, law by the roots because the "ho'e
and sole object Of that law was to deprive
creditors holding liens under Judgments
or DEGREES of the State courts oil thc'r r'2h's
undcr those liens. and to enable bankrurts to
hold ON TO their property in spite OF those
lions. We have not Judge BoND's opinion
before us--wc hope soon to set it-Dut we
e,n Give. we think, al accurate statement OF
the points decided.
Judge BOND says that the rights of parties
arc fixed and vested al the date Of the adju-
dcation of bankrup,cy-that is, when they
arc adiudscd to lie bsnkrupts. In cases OF
voluntary bankruptcy this adJudication
takes place very carly-in chambers, so 10
sneak. In cases of Involuntary bankruptcy !;
=, tina: i, where the parties dcny beng Dalk'
rupt, and contest the cases, the adJudlca-
zion is made Mt Il later stage OF the SUIT.
These fixed and vested rights arc not change
able.
.Jndsc Boxp went on to say that so far rs
t.iv ancnda,ory bankrupt law was dccEira-
tory i vas absolutely null and void. 1t was
rcyo,.G the power Of Congress to construe
ne laws OF To supervise and control the
,o,,,i, Of the country. The constitutional
rgrt Of the aw is like any other law-pros-
1r,qtiyc OILY. and not retrospective. 10
make il retrospective would, he SAID,
BE yi2!atiyc Of riyh, and justice, and
>i;,,yrrIiyc oi the principles 0l The So
. -! connect. Consequently when persons
wen, into bankruptcy II hcIr properly 'cdS
s,i,;r"t 10 iic,ts hy ctrt&e u Jna3ni""t5 or
,,ccrr.'S 81 "0D,-i existing prctp"s'H. Mcy
,~nrn rntiI5rd To- no h0mcSiCGd. Judge
Doxp thinks TIE act vii! extend 10 I'll cases
arising after It's Its>a~c--tjlai i, " i'll exempt
,ac homestead IN spite 81 all liens winch
.,.,,.,. .,,..r,,ra ,;n,, tbr ampnGa:rry BANKRUPT
.,...,.. .,..,.a INIT th,f fiji, act c,nnpt de-
.....:,,. ,;o,,. c,.;.,;p., ,,.ior to ,br Da..ope
,i...,., IN r,b.r words. the ncn. law
,..,,., a;,,.., .l,n ,.rnd;tnrs Of vested rjrLts.
yh;s decision will rclicy" the law A. i'd
uninsured in Virginia o! lis most ol:ou>
TEXTURES,
Same other Interesting points we're de-
,.,fcl i.v .;uGo. BOND. The question he'd
...,,, ,.,i.cd & neither the nankrTpt court could
...ro., ~, r,ntrcI PROCEEDINGS in tie STATE
,..ur,. even after Judgment Or decree entered.
Ind. -, i,ovp said there VA, TO dDub, Il; al!
T.. -. r:,d ,,,,ou This point. ';hc bankrupt
..,ur, hnA the RIGHT - assume jurisdiction,
srrc,, urorrrdjprs in the State courts,
,..n,roI Ill ,hr as,cts. ind do what
,..... ,..,. necessary to I've done in order
., .dr,;u;,.or fine haukr,Ipt law accord
ia, 80 t.. ,.ouir,,o,n1s. Blt it was Il
,,,,,,..,., itr;, IN, discretion Of the bank
r1nt court in each case whether it WAS
j.. ,r,,.y - in,erro.c Where the Judge is
satisfied. that no surplus will be left after the
ions nayc been satisfied, he should abstain
'..' ~ =. =.