National Republican. (Washington City (D.C.)) 1872-1888, 1874-08-07


st a'ement IN writin1 to that effect, require him
10 file IN court forthwith a.full list Of his cred
itors, with their places of residence and thG
sums due them respectively, and shall ascertain
upon reasonable notice 10 the creditors, whether
one-fourth In number and ons-third n amount
thereof, as Aforesaid, have petitioned thai
the debtor be adjudged a bankrupt. But q
such debtor shall, on the fling of the petition
admit In writing that the requisite numbel
and amount Of creditors have petitioned
the court III satisfied that the Admission
was made In good faith,) shall so adjudge
which Judgment shall be hnal, and the mattel
proceed without further steps on that subject
And II Il shall appear that such number and
amount have not 90 petitioned, the court shall
grant reasonable time, not exceeding, In cases
heretofore commenced, twenty days, and, in
cases hereafter commenced, ten DAYS, within
which other creditors may join 10 such peti.
ton. And If, at the expiration Of such time %
limited, the number and amount chall comply
with the requirements OF this section, the mat
ter Of bankruptcy may proceed; but If, at the
expiration Of such limited time, such number
and amount shah net answer the requirement.
Of this section, the proceedings shall be dis
missed, and, In cases hereafter commenced,
with costs. And II such person shall Be adj
judged bankrupt, the assignee may recover
back the money or property 90 paid, conveyed.
sold assigned, or transferred contrary 70 this
act; Provided, That the person receiving such
payment or conveyance had reasonable cause to
believe that the debtor was insolvent, and
knew that . fraud on this act was In
tended; and such person, II creditor,
shall not, In cases Of actual fraud on his part,
be allowed 70 prove for more than moiety Of
bis debt; and this limitation on the proof OF
debts shall apply 10 cases Of voluntary as well
as involuntary bankruptcy. And the petition
Of creditors under this section may BE- sufa-
GENTLY verified by the oatbs Of the FIRST i've
signers thereof, II 50 many there be. And II
any Of said arst five signers shall not reside in
the district IN which such petition Is to fled,
the same may be signed and verified by the
oath or oaths Of the attorney or attorneys,
agent or agents, of such signers. And in COM
putting the number of creditors, as aforesaid,
who shall join in such petition, creditors whose
respective debts do not exceed two hundred and
fifty dollars shall not be reckoned. But II
there be no creditors whose debts exceed said
sum Of two hundred and fifty dollars, or If the
requisite number Of creditors holding debts ex-
ceeding two hundred and hfty dollars fail to
sign the petition, the creditors having debts of
less amount shall be reckoned for the pur-
poses Aforesaid"
Sec. Is. That section forty Of oaid act be
amended by adding st the end thereof the fol-
lowing words: "And II, on the return-day of
the order TO show cause as aforesaid, the court
shall be satisfied that the requirement Of sec
ton thirty-nine Of said act as to the number
and amount Of petitioning creditors has been
complied with, or II, within the time provided
for in section thirty mine of this act, creditors
sufficient in number and amount shall sign such
petition so as to make total of one-fourth in
number Of the creditors and ono-third in the
amount CT the provAble debts against the bank
rupt, as provided In said section, the court
shall 90 adjudge, which judgment shall be
final; otherwise it shall dismiss the proceed
ings, and, in cases hereafter commenced, with
costs"
SEC. IA. That section forty-oue Of said act be
amended as follows: Ater the word shank
ruptcy" in line eight, strike out all OF said sec
ton and insert the words, cor, at the election
Of the debtor, the court may in its discretion,
award venire facias to the marshal Of the dis
trict, retRrnable within ten days before him for
the trial Of the facts set forth IN the petition,
at which time the trial shall be had, unless ad-
journed for cause. And unless, upon such
bearing or trial. it shall appear to the sstisfac-
ton of Said court, or Of the Jury, as the case
may be, that the facts set forth in said petition
are true, or II It shag appear that the debtor
has paid and satisfied all liens upon his prop
erty, in case the existence Of such liens
was the sole ground Of the proceeding, the
proceeding shall be dismissed, and the re-
spondent shall recover costs; and all proceed
ings in bankruptcy may be discontinued on
reasonable notice and hearing, with the ap-
proEal of the court and upon the assent, in
writing, Of such debtor, and not less than one
half of his creditors n number and amount;
or, in case all the creditors and such debtor
assent thereto, such diseontinusncs shall be
ordered and entered; and all parties shall be
RENTED, In either ease, to the same rights and
duties existing at the date Of the filing Of the
petition for bankruptcy, except 90 far as such
estate shall have been already administered
and disposed Of. And the court shall have
power tomAks all needful orders and DEGREES
to carry the foregoing provision into effect"
To Be- continued