Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-06-22
ALEXANDRIA,, VA.
MONDAY, JUNE %, 1874.

HE AMENDED nANkkUfI LAW no o''
to amend the Bankrupt act, which has passed
both houses of Congress, and. if 1t has not al
ready, will doubtless receive the Executive ap-
nroyaI is of so much interest that We give Its
principal features.
The intent of the first section is to regulate
the disposition of the bankrupt's assets so as to
make them realize the greatest amount and
for this purpose the court is authorized to al
low the assignee or receiver to carry 90 the
bapkrupt's business for period not exceeding
nine months, when the interests of the estate
and of the creditors will be thereby promoted.
Stringent provisions are also made by section
to enforce the accountability OF the assignee
and to surround the estate with safeguards
against any abuse of the opportunities OF his
position. To save expense to the estate where
small creditors are numerous, it Is provided
that notice of proceedings being taken may be
given by publication instead Of personal service,
or mail, az now.
Section 9 of the amendatory act makes an
important change in the law by enactlng that
in cases of Involuntary bankruptcy the payment
of no proportion of the. bankrupts debts, nor
the assent of any of his creditors, shall be ne.
cessary to his discharge; and in cases Of voun-
tary bankruptcy the proportion is lowered from
fifty to thirty per cent, and instead OF major
ity in number and value of creditors, the assent
Of but one. fourth in lumber aud one-third III
value is made necessary.
The pefiods during which transactions IN
tended to give preference are made imperative
by the present law are changed from four and
six months to two and three. In order to set
aside hypothecated pledges or liens on the
baukrupt's estate, it must appear that the par
ty dealing with the bankrupt knew that he In
tended to perpetrate a fraud upon the Bank
rupt law, and that he intended to 60 into bauk-
ruptcy. When loan is made to bankrupt IN
good faith, and security taken with the intcn.
ton of aiding him to get through, it shall be
considered as having actual value, and the Sc
curty shall not be invalidated by proceedings
in bankruptcy.
The specification what shall constitute acts
of bankruptcy is materially amended 10 the
matter of suspension of payments, fraudulent
suspension for any length of time, and actual
suspension without resumption within forty
days being enumerated as such. But Instead
of single creditor, to the amount of $3.50, be-
ing able to force debtor into bankruptcy, the
amendatory act requires one fourth 10 number
and one-third in value. And the provisions OF
this section are applied to all cases of involun-
tary bankruptcy begun since December l, 1878,
before, as we'll as after, the passage OF this act;
40 that cases heretofore commenced on the pc
ttion of creditors less in number aud value
may, on the petition of the debtor, be dismiss
ed. 1t is also provided that in computing the
number of creditors who shall join in the petit.
ton, those whose respective debts do not ex-
coed $3.50, shall not be reckoned. Proceedings
may be discontinued whenever the debtor pays
those secured debts which were the ground of
throwing him into bankruptcy, or whenever,
with the consent of the courts, he and major
ity of the creditors shall ask for discontinue
ance OF the proceedings.
A majority in number and three-fourths in
value Of the creditors, IN cases now pending or
adjudicated, as we'll as those hereafter begun,
may, at meeting called by the court, agree to
accept a composition offered by the debtor, and
thus agreed upon, it shall be binding upon all
creditors brought in according to the provis
ions of the act. The court, however, may re-
fuse to confirm such composition, for good
cause.
Section IS makes the important reduction of
oue-balf in all existing fees, commissions,
charges and allowances, except necessary dis
bursements, until the justices of the Supreme
Court shall make new rules aud regulations to
simplfy-and, so far as in their judgment will
conduce to the benefit of creditors, to consoli-
date-the duties Of bankruptcy officials, reduce
their charges, and avoid delays.
Section 20 provides that in addition to the
officers now authorized to take proof of debts
against the estate OF a bankrupt, notaries pub
lie are authorized to take such proof, in the
manner and under the regulations provided;
such proof to be certified by the notary and at
tested by his signature and official seal.
The report of the Conference Committee on