Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-01-07
BANKRUPTCY.
The Senate Substitute for the House
BIZ Repeating the Bankrupt
Law.
Important Amendments-HOW Credit
Ors aud Debtors nay Adjust their
Difficulties at Law.

Inc tHSAuEcs Ol u6DlNI hucu luuk-
nent the interests of the estate as well
a. the creditors win be promoted thereby,
but not for a longer period than nine
months from the time the debtor is de-
.clared bankrupt.
The sec 0Dd section authorizes the as
sagnee to sell the property OF a bank
ruD!, real or personal, st auction in such
ma amer rs 10 produce the greatest
amount with the least expense; the
c0urt to have complete supervisory
power over such sales, and st its discre-
ton may order the real estate sold, one
fourth cash, the balance in three equal
payments bearing interest seven per
cent. per annum, but not more than
six months between any two payments,
and the property secured. Any as
ssignee failing iu or neglecting to faithful
JV discharge the duties, shall be sub
i'ected to fine and imprisonment.
Section adds to section 20 the words,
,sTn 81 causes arising under this act, the
aIlege I bankrupt, and any party thereto,
snail be- ~ competent witness"
Section ! provides 4 at in cases of
.,mnulsof>- or involuntary bankruptcy
fFe ProyisiorF Of law REQUIRING the pay
ment of ANY l.,oportion Of the indebted
ness. by the coIlSent OF q portion OF the
creditors, as a co.1dltlon OF discharge
shall not apply. tCt complete the dis
charge. III otherwise entitled thereto,
ii shall be given in all cases.
Section ). That in cases 10 voluntary
bsIiSruptcy, the term Of four months,
nantioned in section SIS of the old law,
he cha uged to two months. This pro-
vision is not to take effect until two
months after its adoption, and the pc
riod of six months therein nSmed is
cha 1ged to shree months, to take effect
three months after the adoption Of this
act.
section s. That section 35 of said act
he and the same js hereby amended as
follogs: First, after the word land, " in
line Il. insert the word knowing"
secondly, after the word attachment"
in the same line, insert the words "se-
.auestrztiOn, seiZure;'' third, after the
word "and." IN line 20, iDsert the
word "knowing.H
Section :. After section 80 of the old
Ian. providing that sny abscOnding
Eab,-or, or debtor transferring property
,-ith intent TO defraud his creditors may
I,a declared 9 bankrupt on the petition
a .,ne-f0urth in number OF the credi-
+ors whose claims aggregate one-thlrd OF
the totsi Indebtedness, provided the Pc
ririou Is brought within six months
aiter sucu art OF bankruptcy has been
committed. This provision shall apply
TO such cases begun since 1875 prior to
the massage Of this set, as well as mere
after, and in sll cases commenced since
said 1878, and prior TO the passage OF
this act. as well SIS 10 those
commenced hereafter, the court
snail ascertain, upon reasonable
hot har
IN number. and One-third in amount
.t,areof as aforesaid have pehdOned
mat the debtor be- aojudged bankrupt
and = it shall appear that such num-
fsr and aloOunt have not so peutOned
Inc courr stall grant reasonable time,
not exceed5n.s in cases heretofore COM
roence1 twenty days, and IN cases
l,aresf fer conmtNDced, five days, within
which other creditors may join IN such
rantiop. and. if aft,,r the expiration OF
sleh time - limited, the number ana
amount shall comply with The require
meuis of this section, tie matter of
I1a3kruptcv may proceed, but If at the
-aKnirstion of such time, sJcn
number and amount shall not
sf1eWer the requirements of this section,
sae proceedings shall be dismissed and
:. cases hereafter com menced with COSTS
"a II such person -hsG be adjudged a
I,a,1t-, NI;,t. The a-ejguea may recover
bacs Ne money 1r property so pald,
conveyed .-0lG assigned or transferred
contrary [. ssis Scl; provided, tnal the
r,ars,r, re-. v'.ig such payment or con-
veyal,ce lad .~ssSsonable cause 10 oslleNe
mat ihg debtor vas iDsolvent, ana Knew
thar fraud on this act was intended
md such person, if a creator, snaII not
la cases of actual fUaud ON ms part, ue
allowed to prove for more thah molety
of MS debt; and this iNnllIalon on tne
proof of his debts shall Apply 10 cases oi
voluntary, as well as involL utaTy, y:.lH- panA-
ruptcy: and the petition OF eredltors
under this section may be sufficiently
verified by the oaths of the firs% I'VE
.igneTs thereof, If so many there be.
Section 9 alters section Al so as to pro-
vide that. in case satisfaction is given
10 creditors, proceedings can be stopped
by the consent of the court, after proper F,
investigation.
Section 10 provides that in all cases
now pending, as Well as hereafter lnstl-
tuted, whether adjudication in bank
ruptcy shall have been had or not,
maiOrity of the creditors, after due no.
tiee Of q meeting under the direction of
the cCurt, nav accept terms of COM
n 7sition proposed by the debtor in a full,
"a, isfactOry resolution Of acceptance, TO
5,e h. 'nding upon the signatures of ma
i-,itv IN number and three-fouTths of the
yaIna the debts represented at such
meeting after said resolution be re-
coTded IN calculating a majority for
tbs pnrpo. -es OF q composition, under
this ssctio, ,, creditors whose debts
anount TO 81 'uls not exceeding fifty dol
Iqrs shall be reckOned in majority IN
value. but not il majority in number,
and fbe value Of debts Of secured credit
ors above the amount OF such security,
10 be determined b V tne court, SNAIL as
nearly as circunrstan ces auihlt, De esu-
mated in the same v ayi ana cfe9ilors
whose debts are fully s,ecureG shall mol
be entitled to vote upon OF slgn such a
resolution without relinqLIshlng such
se.I.,,ritv for The benefit OF the estate.
ANY mistake made Inadvertently by the
debtor In a statement Of his dei'ts may
be corrected upon reasonable botlce
and with the consent of a general meet
ing Of creditors. Every composition
shall be subject 10 prioritles de-
clsred in said act, provide ~
a pro rata payment or satisiac-
fion in money 70 the creditors OF
such debtors in proportion to the amount
Of their unsecured debts, OF their debts
in respect To which any such security
:. hall have been duly surrendered and
.,,i,yen up. The provisions Of any COM
=, stion made in pursuance of this sec
-, NAV be enforced by the court. II
= a,s.l. al auy time, appear TO the court,
- - - fice OF satisfactory evidence and
t,,.a-in.y that q composition under TINS
aa,tioT ,sa.nuOt, an consequence OF legal
'jiGSc,,Itieg OF for any sufficient cause,
,..aooa6 without injustice OK undue delay
- IT. creditor or TO the debtor, the court
nav refuse TO accept only such compost
yiot ar NAV set or turn aside; ana 40
sffber case the Debtor shall be proceedeu
xgifb as a bankrupt ia conformity win
the provisions of law, ACd proceedings
nav be had accordingly $od the tliIle
during which such cODposatioh siif.li
ave been in force shall not ia such csse
be computed in calculating Ihe
period Of .i--e prescribed by sslu acl.
The conn, ~. ,Ju shall not be blnulhg
upon, ncT affect the rights OF uurepfe-
sented creditors.
Section IL pr ,vides that, from
and after The passage OF this act, tne
fees, commissions, charges. and all a.
lovVances. exeeDt the actual aud nece ssa-
~ disbursements of, and to be made by,
the officers, agents, maIshals, mes sen
gers. assignee and registers, in cases of
bankruptcy, shall be reduced one-hslf,
nrovideo that this section shall be and
Te,nain In force until the justices Of the
supreme conrt Of the United States shall
make aud urOmulgate new rules and
= ulations ia resoeet 10 The pslLers
- *. aid, under the pC eohleIIe59I Ilr5I
NIol =. en- bY sections 10 ann % safu