Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1874-08-05
'rile Amended Bankrupt Act.

Notwithstanding the fact that an imper.
feet law, unjustly administered, has pro.
duced strong and almost universal preju.
dice on the subject nevertheless the utility
of a national Bankrupt Law is pretty gen
orally conceded and perhaps the amended
act, adopted during the late session Of Con.
gress, is likely to give very general salts
faction. 1t doubtless might have been i'm
proved in some particulars, but tit is perhaps
as good a piece of compromise legislation
as could have been expected, all things con.
sidered. The principal notifications Of
the law will be found important. In the
first place, the court may, in its discretion,
direct the receiver to take possession Of the
property Of the bankrupt, and carry on the
business Of the debtor for period not ex-
ceeding nine months. Under the old law
the receiver had no such discretion, but was
directed to sell The court may supervise
the sale, and set It aside, aud order n new
sale; it may also order a sale for one-iourth
cash down, and the remainder within oigh-
teen mouths, at seven per cent. interest
In cases Of involuntary bankruptcy, if en-
titled to a discharge at all, the bankrupt is
so entitled without the payment Of any per.
centage Of the debts, or the consent Of any
portion Of his creditors. In case Of yolun-
tary bankruptcy, no discharge shall be or.
dered unless the assets are equal to thirty
per cent. Of the proved claims against the
estate, except with the consent Of one
fourth Of the creditors in number and one.
third in value. The fifty per cent. provis.
ion in the original act is repealed. The
two periods Of four and six months men
toned in section thirty.five of the origina
act, under the head of " Preferences and
fraudulent conveyances declared void, pres
cribed as the limits Of certain reclaiminl
and voiding processes are reduced, in case'
Of involuntary or compulsory bankruptcy
to two and four months respectively. Al
attachment TO be declared void must hay,
been knowingly made in fraud Of thu
bankrupt law, and this Of course mus
be proved by the party desiring to set i
aside. Nothing shall invalidate any loan
OF actual value, or the security therefor
made in good faith upon security taken ii
good faith at the time of making the loan
In case ofcompulsory bankruptcy, forty day
instead Of fourteen are allowed to elaps,
before a banker, bank. broker, merchant
trader, manufacturer or miner, who fails /,
pay bis commercial paper is liable to b.
thrown into bankruptcy. The assent o
one-four,h Of the creditors in number, anc
one-third in value, is required to throw
debtor into bankruptcy. This later pro
vision relates back to December /, 1873
A compromise may be effected with cred
itors without regard to proceedings il
bankruptcy, by vote Of majority il
number, and three-fourths in value Of tn
creditors, who shall adopt resolution Il
that effect at q meeting duly called. Tn
creditors may add to or vary the provision
of the composition, and it shall be bndin
upon all pon.agreeing creditors. but shal
not be binding upon any not named in tn
debtors statement. The eostiness of Pre-
ceeding under the old act, which was til
leading cause Of the opposition to Il, has hap
PLY been met by the new act, which re
duces all fees, costs and charges whatsoever
exactly one-half, until such time as tn
judges Of the Supreme Court shall estat
lish an entirely new table, which they ar
empowered to do. Time alone will dis
close just where, and to what extent, tn
new law is defective. Meanwhile, ther
will be something which the business worl
will understand, and which throughout tn
Union will be one law, and eventually wi
} receive one construction.