The New York herald., 1874-07-28
BANKRUPT LAW AMENDMENTS,

In the United states Bankruptcy Court yester-
day Judge BlatchfOrd filed an important decision
under the new Bankrupt law, which defines mat
ters Ol practice particularly interesting TO the
legal profession and to bankrupts generally at the
present time in view OF the recent amendments
passed by Congress. The Judge in his decision
proceeds to recite that the petition was filed in
the of Isaac Scu on the 4th OF June, 1874 and
the order to show cause made returnable on the
18th Of June, and only personally served on the
alleged bankrupt on the 5th OF June. On the re-
turn day proof Of service fled but the alleged
bankrupt did not appear ana at the request OF the
petltioning creditors the matter was adjourned
from time to time until after the approval OF the
amendatory act Of June 90 1874 no adjudication
being directed to be entered and OF course no ad-
Indication being entered. The petitiOning creditors
now asked for the entry of an order OF adiudica.
tlon as q default for want OF appearance, The pa.
pers are in due form under the statute as 1t stood
prior to It's amendment by the act OF 1874 and but
Tor the provisions of the latter act the right to an
adjudication would be clear. The twelfth section
of the act OF 1874 provided that the adjudication in
involuntary bankruptcy could be made only on
the petition OF one or more creditors of debtor,
WHO shall constitute ONE fourth, at least, IN num-
ber, and the aggregate of whose debts prOyabe
debts so provable, the provisions OF the act ap-
plying to all cases OF compulsory or involuntary
bankruptcy commenced since December /, 1875"
The decision then goes on to reclte variety OF
statutes bearing upon the question at issue,
in the present case, the return does
not state that the petitioners constitute
must be held that 1t appears the requisite number
and amount OF creditors have not petitlOned. AS
the case was commenced before June D. 1874, an
order will be entered herein by the Clerk, If the Pc
titt0ning creditors desire, granting twenty days
upon the formal entry OF such order as the time
within which the petition may be amended. so as
to show compliance with the requirements OF the
statutes to the number and amount of petitioning
creditors and providing tnat at the expiration OF
that time the Clerk shall present to the Court all
papers which shall have been filed With view to
such amendments of the petition that the matter
in bankruptcy may proceed or tie proceedings be
dismissed, as the case may be. The only act
OF bankruptcy alleged IN the petition Is
that the debtor, being lnsovent, suffered his i.i
defeat the operation OF the act. This was an act
ofbankruptcy when the petition was filed. BY the
act Of 1874 it is no longer made an act OF bank
ruptcy. The debtor being insolvent, must procure
his property to be taken on legal process, with the
intent to give preference or TO neglect delay
the operation OF the act; and all the provisions of
the section Of the act OF 1874. which specifies what
are acts of bankruptcy on which person eau be
adjudged an involuntary bankrupt are by 1t made
applicable to the present case, commenced since
ton is to be proceeded with all 1t must, in
spect to the matters alleged in 1t as constituting
the act 4sat set
property to be taken. An amendment to that
erect will be allowed to be made WITHIN
sOns Uf the statute have been carefully considered
In the above observations. because the number or
1874, was SAG. Or this number thlrty-eight were
discontinued, and In 11s others AdJudcatlons have
been entered. This leaves 130 in which no adjudi-
cation has been entered, and which came under
the provisions OF the act OF 1874 In all OF these
1870 which are IN ae same e SUI as 1ae h
petition was filed before June %, 1874 and order
OF adjudication was formally filed and entered be-
June % 1874, the Clerk will enter like order,
If either party desires IL.