Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1874-07-07
TUESDAY MORNING. JULY Z, 1874.
THE AMENDED BANKRUPT LAW.

The following are the principal points of
the bill to amend the Bankrupt act, as passed
by both Houses of Congress:
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 on the
bankrupt's business for. period not exceed
ing nine months, when the interests of the
estate and of the creditors will be thereby pro-
NOTED. Stringent provisions are also made
by section 4 to enforce the accountability of
the assignee, and to surround the estate with
safeguards against any abuse of the opportu-
mites of his position. To 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. as now.
Section of the amendstory act makes an
important change in the law by enacting that
in cases of involuntary bankruptcy the pay
ment of no proportion of the bankrupts debts,
nor the assent of any of his creditors, shall
be necessary to his discharge and in cases of
voluntary bankruptcy the proportion is low
cred from fifty to thirty per cent, and instead
of majority in number aud value of credi>
tors, the assent of but one fourth in number
and one third in value is made necessary.
The periods during w hich transactions irten-
ded to give preference are made imperative
by the present law are changed from four and
six months to two aud three. In order.to set
aside hypoihec"ted pledges or liens on the
bankrupt's estate, it must appear that the par
ty dealing with the bankrupt knew that he
intended to perpetrate fraud upon the Bank
rupt law, aud that he intended to go into bank
ruptcy. When loan is made t. bankrupt
in good faith, and security taken with the in
tentlou of aiding him to get through, it shall
be considered as having actual value, and the
security shall not be invalidated by proceed
ings in bankruptcy.
The specification what shall constitute acts
Of bankruptcy is materially amended in the
matter of suspension. of payment. fraudulent
suspension for any length of time, and actual
days, being enumerated as such. But instead
of single creditor. to the amount of $3.50,
being able to fOrco debtor into bankruptcy,
the amendatory act requires one>forth in NUN
Der and one third in value. And the pro-
visions of this section are applied 10 all cases
Of involuntary bankruptcy begun since De.
cSmber ], 1878, before, as we'll as after, the
passage Of this act so that cases. heretofore
commenced on the petition of creditors less
in number and value may, on the petition of
the debtor, be dismissed 1t is also provided
that in computing the number of creditors
who shall join in the petition, those whose
respective debts do not exceed $3.50, shall
not he reckoued. Proceedings may be dis
continued whenever the debtor pays those se>
cured debts which were the ground of throw
ing him into bankruptcy, or whenever, with
the consent Of the courts, he aud a majority
of the creditors shall ask for discontinuance
of tho proceedings.
A majority in number aud three fourths in
value of the creditors, in cases now pending
or adjudicated, as we'll as those hereafter be
gun, may, at'a 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 broughtin accord
ing to the provisions of the act. The court,
however, may refuse to confirm such COM
position, for good cause.
Section Is makes the important reduction
of one. half in all existing fees, commissions,
charges aud allowances. except necessary dis
burSenents, until the justices of the Supreme
Court shall make new rules and regulations
to sin'plify-and. so far as in their judge
ment will conduce to the benefit of creditors,
to consolidste-the duties of bankruptcy of
ficials, reduce their charges, aud avoid de-
lays.