New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-27
THE BANKRUPT W.
ou.NcrS nv ruE ORIGINAL ACT.

.r CHANGES IN THE ORIGINAL ACT.
.nn,r,oS.I POWERS GIVEN TO THE COUR1s-SEIdr
ING PROPERTY BY THE AssIGNEE-THE ASSETS
MIST EoUAI, 80 PER CENT OF TIE DEBTS BE-
FORE DISCHARGE Is GRANTED-foRrf DAYS
ALLOWED BEFORE ANY ONE CAN BIZ THROWN
INTO INVOLUNTARY NEUTRALITY-SUSPICIOUS.
WITH NEUTRALITY-SUSPICIOUS. OF FEES.
The bill recently passed by Congress amend
ing the bankrupt law of 1867 and signed by the Pres
dent on the 23d inst provides that the court may IN
its discretion, sufficient cause shown and upon no
tce and hearing direct the receiver assignee TO take
of the property and carry on the business OF
the debtor or any part under the direction OF the court
when the interest Of the estate well as OF the cred
itors will be promoted thereby for period not exceed
ing nine months The must however be satisfied
that majority value Of the creditors approve before
making such an order Section of the act is also
amended by adding provision allowing the court TO
direct that any of the legal debts of the bank
rupt as contradistnguished from equitable demands,
shall when not exceeding $780, he collected In the state
courts having Jurisdiction Concurrent jurisdiction Is
given the Circuit Courts with District Courts OF any
district OF all brought by the assignee any person
claiming an adverse interest owing any debt to the
bankrupt, or vice versa
THE SELLING OF PROPERTY AND REPORTS BY THE
ASSIGNEE.
Unless otherwise ordered by the court the assignee Is
to sell the bankrupts property real or personal at pub
lie auction, the notices OF public sales to he puoshed
once week three consecutive weeks IN newspaper
or newspapers designated by the judge The court on
application OF any party III interest shall nave COM
plete supervisory power OF the sales, ncludihg the
power 10 aside aud order resale so as 10 real
tze the largest sum- The may also order any real
estate OF the bankrupt or any part OF H. 10 De SOFA or
onefourth ca and the residue within eighteen months
at seven per cent in such nsalments as the court may
direct to be by mortgage or lien upon the prop
hail Eaan III
all moneys received and expended by MIN, 10 With
every creditor shall have free access II the assignee
ties in sale disposition OF property the dn
OF the court TO remove him. ana ne shaii oeis az %
fairly wrOngfuly dspOses OF property III MS chare,
or agrees do he SHALL upon proof Oe removed anu
forfeit ali fees or other compensation for all services In
connection with the estate, and upon conviction De ma
he 70 a line of not more than $1,000, imprisonment
f"r no, more than two years or Any person con
snirug with the assignee Tor similar PURPOSE slaI'
IL 70 repor u detail to the court in three
months and at all other times when ordered ny me
court also to report III detail whenever any settle
OF his accounts is MADE Upon sucn settlement lie
must file in court an affidavit deemrng whed1tr ne nas
has not received directly or indirectly any interest,
benefit advantage from the use or deposit OF iunis III
l li and ar If e wG swears falsely In either
case or in report shall be deemed guilty of per
Jury and upon convection be punished by imprisonment
not less than one DOR more than hye years.
BEGINNING OF PROCEEDINGS In VOLUNTARY BANK
RUPTCY.
Section IL OF the original act relating to the beginning
of proceedings in voluntary Bankruptcy is 50 amended
as to provide that tue notices ordered by the court shall
be published in not than two newspapers to be
selected by the marshal. But whenever the creditors
are so numerous make any notice under the law.
by mail or otherwise, great aud dlspr0Oruonate cX-
pense the court may order such notice to be given by
publication all creditors whose sums do not exceed
$50 Section 20 is amended so as to prevent any setoh
be made III debts or credits IN cases OF compulsory
bankruptcy the of bankruptcy upon or IN re-
spect the adjudication shall be made creditor, by
proving his debt claim, does not waive his rsht OF
action suit against tine bankrupt when DISCHARGE
discharge In all trials under the act the al
legged bankrupt or any party thereto are competent WI"
ncSSes. -, 49,. l.. . ,..... a,. A.
In OF compulsory or involuntary bankruptcy the
provisions OF the law requiring tne pJ OF amy prp
of his creditors, CONDITION OF MS discharge from
his debts. do not apply II otherwise entitled 10 III ne
may receive discharge il be had paid the percent
ure. No discharge III cases OF voluntary Dahkfhplcv
snail be made If tne debtors assets not equal 10 80
per cent OF the proved claims against his estate WIN
the assent of one-ionrth OF his creditors I'D noer
and onethird value The 50 cent provision III the
original act is repealed The two periods OF Tour ana
six months mentioned in section So, under the mead OF
Preferences and fraudulent conveyances declared
void" prescribed the limits OF certain retaining ana
voidng processes are reduced 10 Two months anu FOUR
months respectively but TINS not to take enect ior Two
months the passage OF the act Inc same section
further amended by the person proenrns any part Oh
the property who must know that tue attachment pay
mer etc. Is made fraud of the bankrupt law before
the same be declared VOID Nothing III the section
shall nvadate any loan of actual value or the security
therefor made i'll good faith upon security taken III
good faith at the time OF the making Oh the iOah
INVOLUNTARY BANKRUPTCY.
a bank, banker, broker. merchant. trader. manniac-
turer or any other person. who fails TO pay his
commercial paper is liable to be thrown into bank
ruptcy The assent of one-fourh in number and one
third in value of the creditors is required to hrowa
debtor INTO bankruptcy. This provision relates back to
Dec l. 1873 The periods relating to arrest ana I'm.
prisonmen in the same section t5sl are also changed
from seven TO twenty days. If 1t appears that the
number amount of creditors have not pettioned that
the debtor be adiudged Il bankrupt. the court shall
grant reasonable me not more than twenty uays III
cases heretofore begun, and ten days III those begun
hereafter within which other creditors may JOIN. IL
to DE dismissed II he is adiudged bankrupt, the
lenty paid conveyed or sold provided tue person re-
celvng the knew fraud OF the act was Intended
cases OF fraud be allowed to prove for more than
molety his debt. This Limitation is 70 apply 10 von-
this section may be sufficiently verified ny the oaths of
the first five signers their attorneys n they do not
reside in district Those whose debts do not exceed
$50 are not reckoned In computing the number
and amount of creditors; If there DO none whose debts
having debts less amount shall be reckoned When
court hears the allegations OF the petitioner ana
debtor, IL may at the election OF the debtor, award
renire facias the district marshal returDable within
10 days for the trial of the facts SET FORM ID tne pe,on
paws those secured debts which were the ground OF
throwing him into bankruptcy. or whenever, WIN tne
| shall ask for dscoDtnuance OF the proceedings
trict Court is also vested District Courts Instead
of the Supreme Courts Of the Territories formally,
subject TO the general superintendent ana jurisdiction
conferred upon circuit courts by section d.
COMPOSITION WITH CREDITORS.
composition may be effected with creditors without
regard to proceedings In bankruptcy by vote OF ma
ority in number and hre0fOurtbs in value Of the cred
ors who shall adopt resolution to that effect at
meeting duly called due notice. Of such creditors
may be present represented by proxy. Such resou
ton with debtors statement OF mis- assets and debts,
shall 70 the court and recorded The cred
ors may add may the provisions OF the com
position IN the manner and the composition snail
be binding all non-agreeng creditors. but shall not
prejudice the rights of any not named In the debtors