The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1873-07-17
C0SSrI1Uu0NAIITY OF THE BANKRUPT
LAW.

C0SSrlsUElONAlIT OF THE BANKRUPT
On Tuesday last judge ]. W. G.. Smith, Of
the Hastings Court Of Staunton, rendered
decision involving the constit utiopality of
the Bankrupt Law, according to our apprc-
hension of it, in which he maintained, sub
stantially that the amendment to the Bank
rupt Law was unconstitutional, although he
did not express it in go many words. The
case was this:
| Ceases administrator instituted suit in
chancery against Jacob Rohr to subject a
house belonging to defendant to sale in sat-
isfaction of judgment lien.-There was
decree for sale and the property advertised,
but before the sale the defendant had filed
his petition in Bankruptcy, and obtained a
certificate of protection, which he exhibited
to the commissioner of sale on the day the
| property was offered for sale. The commits
sioner proceeded, notwithstanding this, to
Sell the property, and it was announced as
sold to J. J. Points, who was ignorant of
the fact that the defendant had gone into
bankruptcy Learning this fact, however,
soon after the transaction, the purchaser re-
fused to comply with the terms of sale, al.
eging as reason that the defendant had be-
come bankrupt, and that this court had no
furthc. control over his property. A rule
was issued against the purchaser, and upon
the trial of said rule the court decided that
it had jurisdiction Of the case to the exclu-
sion Of the Bankrupt Court, and required
the purchaser to comply with the terms of
sale within twenty days, and directed the
property to be resold should he fail to do so.
The case was argued before his honor, by Fl.
NJ. Bell, s. T. Phillips and James Bumgard-
ner for plaintiff, and Jno B. Watts and A.
II. Fultz, for defendant.
Judge Smith followed the decisions Of the
| Supreme Courts of Massachusetts and Penn
| sylvania, in the cases of Tuesley vs. Robin
son, and Fehley VS.. Barr, respectively, as re-
ported in the notes Of Bump on Practice in
Bankruptcy, recently issued, on page 40.
In these it is decided that judgment liens
constitute special title to the property thus
encountered that such property does net
pass into the hands of the assignee, but such
only as may be claimed as the debtors after
the judgment lien is satisfied This has ref
| 70 NH tbo oht
fore the passage Of the amended bankrupt
law and suit was instituted to enforce it.
The cases reported in Bump as having
been determined in the Massachusetts, and
Pennsylvania Supreme Courts, are strongly
stated.
| While the consttutonality of the amend
ed bankrupt law, it is true was not discussed
either in the Argument b. counsel or in the
opinion by the court, the decision certainly
comprehends the constiutionality of that
act. The amended bankrupt law Of March,
1873, provides that the bankrupt exemption
is good against debts created before or since
the adoption ofaay State Constitution and
against judgment liens, &c, the decree of
my State Court to the contrary, notwith-
standing. The constitution expressly pro-
viles that Congress shall have power to
pass uniform haaEraptlaw. The question
then presented, is the law of March 3, 1873,
uniform Ifso, it is constitutional, and it
has been SO decided to be net only by Judge
Rives, of the U. S. District Court of Virgin.
ia, but by similar tribunal in Tennessee.
Under this amended law, it is very appar-
ent, it is contemplated that the Bankrupt
Court STA ! take charge of the property of
the petitioner, whether it is encountered by
Judgment liens or not, and after the bank,
rupt exemption has been set apart by tho
assignee, the surplus is distributed AUS
creditors. The jurisdiction of the Stale
Courts is superseded by that Of the Bankrupt
Court, established by CONGRESS-, which has
the power under the Federal Constitution to
create uniform bankrupt law, and interpo-
SEES to arrest the operations of judgment liens
and DEGREES, &c. Of the State Courts.
In this instance, we presume Judge Rives
Will at once issue a restraining order, have
the case adjudicated in the Bankrupt Court
and assign to the petitioner his bankrupt
exemption if he is entitled to it under the
law Of Congress. It is either that, or the
perfect nudity Of the amended bankrupt act
o March, 1873 1t is we'll enough that the
q lestion has been raised. There have been
8 lch wide differences as to the proper inter-
. probation of the law Of 1878, with learned
lawyers, that it is desirable the Jurisdiction of
the Bankrupt Court and that Of the State
Courts be plainly defined It will save
large amount of costs to class Of people who
are lily able to bear it.
/ HON. JOHN F. LEWIS.
A paragraph is being industriously circu-
1 I-L~