The home journal. (Winchester, Tenn.) 1858-188?, 1874-10-01
THE BANKRUPT LAW.
what the American Law Means Aecor"-
Ing to Judge Blntchford'

What the american h"" N-S' tl
Ing to Judge Blntchfor"' n,
New York Journal of Commerce. J,
There has gone abroad n greatly MIS- Ii
taken Interpretation OF Judge Blatch-
for1 ford's recent decision regarding the per
tW,t nont of n debtors obligation which
must be paid in order to entitle him to
- Esoborce We find the decision !.
broodly stated to be "that when the =
assets Of n bankrupt do not reach my
mor cent of claims proved against the {
Estate he cannot have discharge IN
loss with the assent of majority OF the
nnmber and value Of his creditors, IN
accnrdonce with the law of 1868, pro-
vision which, in tho opinion OF the cour',
has not been modified ny suosequeh,
legislation" What was IN 1act aec'uen
was something very different ,housn
important to undischargei involuntary
bankrupts in whose cases proceeoeo'pRs
we're begun after January l, ioo'. 10
such cases the City per cent. clause was
onnlied prospectively, by the act OF July
oT o-p 1S6s. and the question = whether
1ha rencol of that clause by act OF lo'i
e raleases val from the operation pending
4 cases Judge Blatchford declares that
J ~ doos not As interpreted in the above
i ~ opot;nn "Goe | the decision would fatty con-
{, tradict the language of the amendatofy
q oct which declares (section y that III
j. coees of involuntary or compulsory pauh-
W runtcv the provisions of said act the
o. ORIGINAL bankruptcy act OF Marcn =
W 1eG7\ md any amendments thereof, or
lg of onv supplement thereto, requiring
tho navment of any proportion OF the
~ debts of the bankrupt, or 1lie ussonu ~
'u ony portion of his creditors, as q cor
:, dition of his discharge from ms uepos'
NJ shall not apply but he may II 1 oshtr, h,,
IL wise entitled thereto, be dischargeu pI
the court in the same manner ana WIZ,
o. tbe same effect MS if he had PAD suc9
,'or ,er cent cent, of his debts, or if the required
nroportion of his creditors mad asseh'o'
H., thereto. u,,t oorores
ro- meant in the first part OF this quo'a
not t;on cases of involuntary or compulSot
not honlrnntcy which may hereafter D
his oon,mnnced, and that no relief was II
lad tonded for debtors already addludlcate
lip ,on,l,n hanIrunt vt but remaining undischarge
SIN, for want of ability to pay fifty per cen! |:
pea nr to obtain the assent OF q mn!oriVy
cut nrmhpr and value of their creditors.
OF wow be so Although it appears 10
to nn violence would be done to the lal
the ,,oo ~ nf the amendment by n mo-
the liberal Interpretation, yet the i3 dis,,, u,
Oh courts appear thus far to nave helu ~
rm- formly that except where the at;, anou;,
tiy' tory act is expressly given re'fo"eea
we ofTsct. it's oreration is confined 10 Gus
ting which have not yet reached the pom,
ages od;ndication. Where an order OF aol
'Ihe dicotion had in fact been maae pE y
vlo- ;udre but not formally entered, 0"o
dge, Rlotchford held the opening larBe1enou
.hen tn let in tbe amcndatory act, ana III su
oop, a case required hepetition to be amer amer
nong "a On os TO allege suspension OF payne
orth or commercial paper for forty DAYS,
" to stead of the fourteen which was emu
oney 70 ollege when the proceedings were
w OF ann None of the other decisions VII
pro, have fallen under our notice mh8e u
pnted a,;te 90 fine n point OF tlme as u
lgton fndoments have been rendered, II
re, on over limiting the express retrospec'
fall ,,,oy;sions of the act of 1874, one
mpl- pluh;ch regulating the number OF cf'
tholi, tors to be joined IN pe.IOlon, III II nn
wos acted without qualification snal. l,, ap tl
ana to all cases begun since DEceiaoe. M aoe,
'rcen- 1873, The circuit court Tor the eas'
-Dag district of Missouri, IN re opear' an
h the .'l'TI nh',n,os reversing the order OF
6 an dietr;ct court, restricts tins genera
r,;a;an "a follows: "Without entel
con- mon the inquiry as to the compeSe
in on ~ % congress- to annul by mere leglsia
annot AZ declaration prior adiudicatlons OF d
ing rnntcy. regularly made, in pursIl,an'
orded ip ,"p =; force ot the time, under the
)naut. ,'onorco ,"mo ~ and acts Hereunder, i az
3 his ,ho Wy In on;nion that congress did not IN
served w., Wv tLo omendatory act to overtur
G sud disturb adjudications then aire"oy :
arms, and in force" In another case' arl
, -- n ~ M;ch;oan, the adjudication was
down in April of the present year. "it; i ", ~
u pun titioning creditors, supposinb ~ on -
uV lle sary to amend their petillon ~ IS -
'e'ai!u' suce with the amenda'ofy "IU
We mar, sought leave of the court TO 90 So
mbued court, however, decided thaG @ aulsho m
'ible to was necessary, saying "Ihe ue1'
ght by adjudication having been reh1eieu
there to the approval of the amHHun'o' .,o ;
against - will stand as the decree OF the
rvivlng r. 10 not in the power OF the ie9ls
femem- denartment of the government ~
coming ;m1orfere with the judicial deparl
cted to aa aa't 70 w vacate the judgments and de
but / 80 ' tIa latter" The United State.
20 men, tn;ot m conrt for the western dlstfi
for my 'yIIa Wisconsin also says 1t is not
aarv m.po 70 amend the petition when
has has been an adjudication before
amended m act took effect, An aal,
70 has ton removes the cases beyond IN
80 70 tho the main of Legislative control. r. !
, y have, S Rairauf, Legal News, 34l.l imt ha.
!, ,rtrss ts' ern district court of Wisconsin nj. n''
q ,'t,,n fonnd wise decided that the amendmen11
roUns ine @ it necessary in order to AVOID u.
rway as I5 a1isa ed TO be in fraud of the act IN
"a tras hnver must know, and not merely
1e 10 ISe1 COZ % reasonable cause to believe Una
lorwav ~ U,uI are fraudulent, is not available III
meariv begun before the LIST of December
neurt n,ani ''f Under Ind these decisions accora
nE.an T.amos there is room for the enactment o,
,an n,"noe nue Of general amnesty to relieve u u
yh;lo ,hH ' in who remain undischarged whlle
nlle n,',,im H. Jahtors of the same class, una
'u''u ,;m that later act, go free of their oong, g
' the , sta. There is no justice in main'a'nin
of the ungenerous oi'''n
N nm that