The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-07-17
The bankrupt LaH-Emporfapf DE-
scfstou nv 1utsre DfIIon,

.(rowal Gazette Of the 18th, Judge Dillon
OF the United States Circuit Court, bad be
fore him, ut his chambers in this city, petit
ton to review the order of Judge Treat, O
Missouri, holding that the new amendment
of the bankrupt act affected cases commenced
since December 1st, in which adjudication
had been made before the new act took eft
feet. The decision of Judge Dillon has been
awaited by the legal fraternity with consider
able interest. He gave his opinion on yes
terday, and we lay it in full before our read
ers this morning:
In re Obear. In re Thomas-United states
Circuit Court, Eastern District OF Mis-
souri,, July 8, 1874.
While the late amendment 10 the bank.
rupt act is retrospective in It's operation so as
to bring within it all cases commenced since
December 1, 1873, and in which at The time
Of the passage of the said amendment Dune
%, 1874 the petitions for the adjudication
remained to be acted on, yet it does not annul
or disturb judgments rendered or adjudica.
ton made and in force at the time of the
taking effect of said amendment.
Before Dillon, Circuit Judge-Bankrupt
Act-Retroactiv operation of Amendment
of June p, 1874.
These are petitions for review under Sec
ton 2 of the bankrupt act.
Facts in the case of E. 6. Obear: On the
4th day of May, 1874, a creditors petition
was filed against Obear in the District Court
for the Eastern District of Missouri, stating
that, being a broker and trader, he did, on
the 2Sth day of May, 1873, suspend, and did
not within fourteen days, nor at any time
thereafter, resume payment of his CONNER
cial paper. To an order to show cause Obear
on the 18th day of May and admit
ted the petition, and he was thereupon on
that day by the court adjudicated and de-
clared bankrupt, aud subsequently, June
22d, an assignee was elected, to whom deed
OF assignment was made, and was regularly
proceeding in the discharge Of his duties I'm.
til June 50th, when the District Court, on
its own motion, made the following order:
alt is ordered that the petitioning creditor
amend his petition within thirty days so to
conform to the 18th section OF the act Of
Congress as approved June 22d, 1871, in the
following respccts-to wit:
81. BY alleging that the number Of llnse-
cured creditors who have joined therein con-
Stitute at least one.tourth in humber, and
that the aggregate of their debts provable
Of all the debts so proyable."
80. Said amended petition shall be signed
and verified by the first five signers thereof,
if SO many there be, in the manner and
form required by said act"
80. The allegation in the original petition
Of the Suspension of the debtors commercial
paper for fourteen days shall be so amended
as to aver the suspension and non-resumption
thereof within period of forty days before
the filing Of the original petition of bis COM
mercal paper made or passed in the course
Of bis business as such broker and trader"
And it is further ordered that all other
in the case be stayed until said
amended petition is filed.
To this order the petitioning creditor, the
and certain secured and unsecured
excepted; and it is to have the
same reviewed that the petitioning creditor
has brought the present petition.
Facts in the case Of james S. Thomas In
this case creditors petition was filed
against Thomas on the 25th day of April.
1874, duly charging as an act OF bankruptcy
the suspension of his commercial paper on
the 18th day Of November, 1873. Such pro-
ceetlings were had that Thomas was regll-
arly adjudicated a bankrupt on the 25th day
Of april, and his case referred to Il register.
Creditors met on May 30th, and resolved to
proceed under section 43 of the bankrupt
act, and appointed a committee of one, John
I. Priest, dis trustee, to whom ell the pro-
pcrty OF Thomas was conveyed, and who has
since then been engaged in winding up and
settling the trust. On the 30th day Of June
he District Court, on its own motion, en-
cred an order" Siuilar to the one in Ooear'S
,aSa, above given, aud which was excepted
o III like manner, lnd is now here for re-
view at tue instance of the pettioning cred
tor, the bankrupt, and other creditors.
4. b. Woodward, FOR O3ear'S creditors.
Hill &c Bowman, for ThoGlas's creditors.
No appearance, cGsstrd.
DILLON, Circuit Judge: In both the cases
before me the proceedings in the District
Court were commenced after December |,
1913. and the adjudication Of the debtors as
)ankruptS was made before the late act
the bankrupt act took effect, and
u neither OF the cases had the estates been
'uily settled.
The recent amendment to the bankrupt
aw makes several important changes in re-
,pect to involuntary bankruptcy, and among
)tber changes it requires that at least one
'ourth in number OF the creditors represent
ng oIe-third in amount of the proYabla
debts shall petition for the adjudication; ard
he time Of the suspension Of the pay ment
Of commercial paper, constituting an act OF
is extended from fourteen days
TO forty days, aud prescribes and limits what
shall be considered such paper.
The amendatory act approved June p.
1874, is made retroactive in the following
language:
"rhe provisions of this section shall ap-
ply to all cases Of compulsory or inyolun-
tary bankruptcy commenced since the 1st
day of December, 1873, as we'll a> to those
commenced hereafter. And in all cases
commenced since the 1st day Of December,
1873, and prior to the passage Of this act, as
we'll IS those commenced hereafter, the
court shall, if such allegation as TO the num-
Der or amount petitioning creditors be de-
MED BY the debtor, by q statement in writ
ING to that eject, require him to file in court
forth! with full list of his creditors, with
their places Of residence and the sums due
them respectively, and shall ascertain, upon
reasonable notice to the creditors, whether
one-fourth in number and one-third in
amount thereof, as aforesaid, have petitioned
that the debtor be adjudgeda bankrupt. But
ii such debtor shall, on the filing OF the Pc
tition, admit in writing that the requisite
number and amount Of creditors have
petitioned, the court, if satisfied that the
admission was made in good faith, shall
50 adjudge, which judgment shall be final,
and the matter proceed without further steps
on that subject. And if it shall appear that
such number and amount have not so petit
toned the court shall grant reasonable time,
not exec eding in cases heretofore commenced
twenty days, and in cases hereafter com
menced ten days, within which other credit.
ors may join in such petition. And if at the
expiration of such time so limited the num-
Der and amount shall comply with the re-
ouirements of this section the matter oil