Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-09-24
THE AMENDED BANKRUPT LAW.


There has gone abroad a greatly mis-
taken interpretafiOn'Of Judge Blatchford's
recent decision regarding the per cent. of a
debtors obligation which must be paid in
order to entitle him to a discharge. We
find the decision broadly stated to be @that
when the assets of bankrupt do not reach
fifty per cent. of claims proved against the
estate, he can not have 4 discharge unless
with the assent of a majority Of the num-
Der and value of his creditors, in accordance
with the law of 1868, provision which, in
the opinion Of the court, has not been mod
flied by subsequent legislation" What was
in fact decided was something very differ
ent, though important to undischarg-
Cd involuntary bankrupts in whose
cases proceedings were begun after Jan. l,
1869. To such cases the fifty per cent.
clause was applied prospectively, by the act
of July p, 1868, and the question is
whether the repeal Of that clause by act OF
1874 releases from the operation pending
cases. Judge BlatchfOrd decides that il
does not. As interpreted in the above quo
tation the decision would fatty contradict
the language of the amendatory act, which
declares, section o, that sin cases of invOl-
untary or compulsory bankruptcy the pro
visions of said act (the original bankruptcy
act of March 2, 1860, and any amendments
thereof or of any supplement thereto, re-
curing the payment of any proportion Of
the debts of the bankrupt, or the assent of
any norton of his creditors, as a condition
of his discharge from his debts, shall not
appIy; but he may, if otherwise entitled
thereto, be discharged by the court in the
same manner and with the same
effect as if he bad paid such per
cent. of his debts, or as if the required pro-
NORTON of his creditors had assented there
to.n Judge BlatchfOrd rules that Congress
meant, in the first part of this quotation,
cases Of involuntary or compulsory bank
runfcy which may hereafter be commenced
and that no relief was intended for debtors
already adiudicated bankrupt, but remain
inc undischarged for want of ability to pay
fiffy per cent, or to obtain the assent Of a
majority in number and value of their ere
ditors. 1t NAV be so. Although it appears
10 ms no violence would be done to the
Ianouape of the amendment by a more
liberal Interpretation, yet the district courts
annear thus far to have held uniformly that
except where the amendatOTy act is eX-
nressly riyen a retroactive effect, its opera
tion is confined to cases which have not yet
reached the point of adjudication. Where
an order Of adjudication had in fact been
made by the Judge, but not formally enter
ed Judge BlatchfOrd held the opening
Iaroe enough to let in the amendatOTy
act and in such a case required
tbe petition to be amended so
as to allege suspension of payment Of com
mercial paper for forty days, instead Of the
fourteen which was enough to allege when
the proceedings were begun. None Of the
other decisions which have fallen under
our notice hinge upon quite so fine point
of time as this. Judgments have been rem
dered. however, limiting the express retro
spective provisions Of the act Of 1874, one
of which. regulating the number Of cred
itors to be Joined in petition, 1t is enacted
without qualification shall apply TO all
cases begun since Dec. 1, 1873. The Cir
emit Court for the Eastern District OF Mis-
souri. in re Obear, and in re Thomas, re-
versino the order of the District Court, ie-
stricts this general provision as follows;
ssWitbOut entering upon the inquiry as 10
the consistency of Congress to annul by
mere legislative declaration prior adj
indications Of bankruptcy, regularly
made, in pursuance Of laws III force
AZ the time, under the conveyance and
acts Hereunder l am Of the opinion
that Congress did not intend by the
amendatory act to oyerturn or disturb adj
indications then already made and IN
force In another case, arising in Mlehi-
ean. the a. indication was made in April OF
The present year, and the petitioning eredi-
tors. suppOsing it necessary TO amend their
netition i'm accordance with the amendatory
act of June, sought leave Of the court to do
so. The court, however, decided that