The New York herald., 1874-10-07
THE AMENDED BANKRUPTCY ACT.
Condseation OF Debts and the Distribu-
ton o4 Ea II E1xos,as:fx

Confse = tion OF Debts and the Distrfbu.
tion OF Bankrupt Property.
Yesterday case involving the constitutonality
OF the recent amendment to the Bankruptcy law
came up for argument before Judge Blatchford, In
the United States District Court, in the matter OF
N. Remair 4 Co. Under the amendment to the
law IN question the bankrupts profIered to pay
composition to their creditors OF ten per cent
in cash, and two subsequent payments Of ten per
cent each, secured Dy notes, one note being pay
able IN tour months and the other at eight months.
Mr.. Campbell, OF the firm OF Hilton, Campbell &
Bell, appeared on behalf OF certain creditors to
oppose the confirmation OF the profered compo-
stion by the Court. He contended that the re-
cent amendment by Congress TO the Bank
much as it provided for the condscaton
OF debt, and not ior the distribution Of the banK-
rupt's property among his creditors which was
the main and essential element OF all bankrup.cy
law The surrender Of such Dankrupt's property
was principle known at the earliest period OF the
Roman law. The Bankrupt law required the sur
render OF the bankrupt's property lor the benefit
OF his creditors. and, having made such surrender.
he shall be discharged from arrest and his subse.
quent earnings shall not become liable or the
debts he had incurred up to the period OF his
iald down that the general object OF all bank
ruptcy and insolvency law was on The one hand,
to secure to creditors an appropriation ol q
debtors property among them, and, on the other
hand, TO relieve honest ueb.Ors from being perpe-
tualiy bound to their creditors. Ihe amendment
conditions. The debtors merely said that they
would pay certain percentage upon their debts.
Mr.. BOardman, on behalf OF the debtors, con-
tended that his learned friend. MI Campbell was
entirely mistaken In saying that no bankruptcy
law provided tor @ composition. The law or Eng
land provided Tor such q composition, and he read
q section OF the English law to sustain his asser-
non. Under tnat law compositions were Ire
quently effected by debtors with their creditors.
And what was the meaning OF compositions 1t
meant, in this connection. that the debtors bound
themselves pay to the creditors. In instaments,
sums less than they were originally bound to pay
them. In this case the composition provided for
sa atisfactory lndorsers upon the notes.
Judge Blatchord asked how II was to be found
out that the indorsers were satisfactory.
Mr.. Boardman replied that the words ''sattsfac-
tory indorsers' In this case, though their names
were not set out In the composition, meant per-
SONS whose pecuniary responsibility was good,
and nothing more ynan that AZ TO the question
OF the constltutionality oil the law raised py Mr..
Campbell, he (Mr. Boardman) had 10 say that lt
was within the power OF Congress to select sucn
machinery as IL chose Cor the purpose OF giving
eject TO the Bankruptcy law, and this mode OF
composition was just one OF the modes Tor giving
effect to the law.
Mr. Campbell briefly replied to the argument of
MIR. Boardman. He contended that, under the
composition the property OF the debtors would
revert back TO them, and the creditors whom he
remedy II the debtors did not at the end VI the
time specified. pay the amount OF the composition,
wnere were they TO be iound, as they would then
have taken possession oil their property and proc
ably disposed OF II
Judge Blatchiord who said that the point was
an important one, took the papers and reserved
hts decision.