New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-08
IMPORTANT BANKRUPTCY DECISIONS.

OPINIONS DELIVERED AT RICHMOND BY CHIEF
JUSTICE wAITE-THE AMENDAToRY BANKRUPT
ACT OF 1873 UNCONsTITUTIONAL-rHE RIGHT TO
WAIVE HOMESTEAD EXEMPTION UNDER THE
VIRGINIA LAWS
The United States Circuit Courtroom at
Richmond crowded, last Friday morning, by mem
bers Of the bar representing all portions OF the state
and by business men Of the city, who had been at
tracted together to hear ChefJustice Waite deliver the
opinions OF the Court in two important cases. Both
decisions were rendered petitions for review Of
bankrupt cases under the second section OF the Bank
rupt act The first opinion was given in the case OF
Daniel Deckert, a bankrupt. Tle substance OF the
opinion gwen below.
THE LAST AMENDATORY BANKRUPT ACT UNCoNsTI-
TUTIoSAI~
Mr. Waite said that by article XII OF the Constitution
OF Virginia adopted in 1862 every householder or head
of family was entitled, in addition to the articles then
exempt from levy distress for rent. TO hold exempt
from levy aud sale under execution etc. issued on de-
papd for any debt heretofore or thereafter contracted
his real and personal property etc. TO the value OF
5000. TO be selected by himself BY an act or the
General Assembly, approved June 81, 1870 enect was
this provision. Under the original Bankrupt
law there was exempted from assignment by
bankrupt such property as exempt from levy
and sale under the execution by the laws
of the State In which the bankrupt had his domi-
Gle proceedings in bankruptcy were begun, 10 an
amount not exceeding that allowed by the state Exemp
ton laws in force in 1864 By amendatory act passed
June g. 1884, this provision was changed so as to give
the bankrupt the benefit Of the exemptions under laws
in force in 1871 In 1872 the Court Of Appeals o. Virginia
decided 22 Graft. 26s that the provision
OF the Constitution referred to, and the statute giving
effect TO same far as they applied to contracts en-
tered into debts contracted before their ADOPTION
were in violation of the Constitution OF the United
States and therefore On March 8, 1878, Congress-
elaaa pnfn a
the state laws existing in 1871 should be valid against
ehts before or after the adoption Of such
State Constitution and laws.
The first question: Mr.. Waite said, was whether the
act OF 1879 far 1t seeks In the administration OF
the Bankrupt law, TO give an effect to the Exemption
law OF State different from that which Is gwen by the
State ITSELF Is constitutional Congress has the power
TO establish uniform laws the subject OF bank
ruptces throughout United states" bankrupt law
10 TO be constitutional must be uniform aud whatever
that PROPERTY exempt from execution shall be exempt
b, one s snds % ar DrG On
shall not be assets under the law 10 one
place. must make the same provision Tor every oner
proper TO confine the operation Of bankrupt law TO
as other s *, OF ss
not only such property as was actually exempted py
virtue Of the aw out tbey e. sSs n be-
operative and have effect under the Bankrupt law but
ss laws each ane sats actually
tne thereof or not, shall be excepted 1t In |
feet declares by It's enactment without regard
10 the laws Of the States that there shall be one amount
description Of exemption In Virginia aud another In
this think IL is unconstitutional
and void 1t changes existing rights between
the de btor and creditor Such changes to be war
ranted by the Constitution, must De UNIFORM In their
operation This Is The consequence that the act
OF 1872 remains unchanged, Notwithstanding its at
tempted amendment IN 1873.
The act 1872 effect to the exemption laws OF
Virginia as they existed in 1871. The bankrupt claims
his exemption under law passed in 1870 which does
moi apply 10 debts incurred previous
10 the tune Constitution went into effect That
certainly before July 1852 and certain OF the
previous that time, that the
bankrupt entitled TO the benent OF the exemption
1852 and the claim under required
that the the Constitution went into effect
should be determined. Mr. Waite after reviewing the
history OF the Constitution, said In our opinion the
constitution of Virginia took effect. far 1t related
10 the provision for exceptions the 9th OF July 1862
day Of its ratification by the people II follows that
exemption laws passed 10 give effect to that TO
operative for the benefit OF It's citizens from that
date"
THE RIGHT TO WAIVE AN EXEMPTION.
The second opinion given in Of Joseph Solo
mop bankrupt, which the District Court had de-
cared that provisions Of the State law OF June
allowing Of the exemption, unconstitu-
tonal The bankrupt had, under the law, waived his
right by a clause in note his creditors. Mr. Waite
sad that the exemption laws did not intend exempt
absolutely house holder the right TO claim
exemption. This he do before q SALE he could
not have exemption. III he has the right waive
the of by refusing TO select there Is
why he cannot waive before. MT Waite decided that
the Legislature ted within the Of its constitu
tiona passing the law Of 1870 and reversed the
Judgment Of the District Court