Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1874-08-15
The Amended Bankrupt Act.

Notwithstanding the fact that an
imperfect law, uniustIy administered,
has produced strong and almost
universal prejudice on the subject,
nevertheless the utility of national
Bankrupt Law is pretty generally
conceded; and perhaps the amended
act, adopted during the late session
of Congress, Is likely TO give very
general satisfaction. 1t doubtless
might have been improved in some
particulars, Tut it is perhaps as good
piece of compromise legislation as
tould have been expected, all things
considered. The principal modifca-
cions of the law will be found impor-
tant. In the first place, the court
may, in it's discretion, direct the re-
cever to take possession Of the prop
erty of The bankrupt, and carry on
the business OF the debtor for period
not exceeding nine months. Under
the old law the receiver had no such
discretion, but was directed to sell.
The court may supervise the sale,
and set it aside, and order new
sale; it may also order a sale for one
fourth cash down, and the remainder
within eighteen months, at seven per
cent, interest. In cases of involun-
tary bankruptcy, if entitled to a dis
charge at all, the bankrupt is SO en-.
titled without the payment of any
percentage of the debts, or the consent
of any portion Of the creditors. In
case of voluntary bankruptcy, no dis
charge shall be ordered unless the
assets are equal to thirty per cent. Of
the proved claims against the estate,
except with the consent of one-fourth
of the creditors in number and one
third in value. Tie fifty per cent.
provision in the original act is re-
pealed. The two periods of four and
six months mentioned in section
thirty-fve Of the original act, under
the head of "Preferences and fraud
ulent conveyances declared void
prescribed as the limits of certain
retaining and voiding processes, are
reduced, in cases Of involuntary or
compulsory bankruptcy, to two and
four months respectively. An at
tachment to be declared void must
have been knowingly made in fraud
of the bankrupt law, and this of
course must be proved by the party
desiring to set it aside. Nothing
shall invalidate any loan of actual
value, or the security therefor, made
in good faith upon security taken in
good faith at the time of making the
loan. In case Of compulsory bank
ruptcy, forty days instead of fourteen
are allowed to elapse before banker,
bank broker, merchant, tender, man
ufacturer or miner, who fails to pay
his commercial paper, is liable to be
thrown into bankruptcy. The assent
of one-fourth Of the creditors in num-
Der, and one-third in value, is re.
qured to throw debtor into bank.
ruprcy. THIS later provision rel ties
back to December / 1878. A com.
promise may be effected with cred.
itors without regard to proceeding:
in bankruptcy, by vote of ma
jority in number, and three fourth,
III value Of the creditors, who shall
adopt resolution to that effect at +;
meeting duly called. The creditors
may add to or vary the provisions o
the composition, and it shall be bind
ing upon all non-agreeing creditors
but shall not he binding upon any
not named in the debtors statement
The costliness Of proceeding unde
the old act, which was tile leading
cause of the opposition to it, has hap
PLY been met by the new act, which
reduces all fees, costs and charge,
whatsoever, exactly one-half, unit
such time as the Judges of the Su
preme Court shall establish an en-
tirely new table, which they are EN-
powered to do. Time alone will dis
close just where, and to what extent
the new law is defective. Meanwhile
there will he something which tin
business world will understand, ant
which throughout the Union will b
one law, and eventually will receiv
one construction.-W. Waterman.