New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-07-28
THE COURTS.


PEruIoS-A LARGE NUMBER or CASES Dis
POSED OF.
I'm the United States District Court yester-
day Judge Blatcnior1 gave what considered ny bank
ruptcy lawyers = very important decision, involving "a
II does a construction Of the ADendatory BANKRUPTCY
act Of 1874 aud deciding Other things that 10
ttiOn bankruptcy must contain on ia lace adalys
allegatiO OF the existence Of all the facts necessary
the right TO adjudication. The decision also
dsposes 10 a certain extent OF 100 eases now pending
fbe Bankruptcy Court. III the matter Of Isaac ScuI an
alleged bankrupt. petition Involuntary bankruptcy
was od on June 1874. The order 10 show wss
returBaDle on June and dIIy served on rhe a.
legged bankrupt June g. On the return day. proof Of
service was iled but sculI did not appear, sLd at
request OF the peoning crcditorsltne matter was al
journed from tune 10 time until after he approval The
Amendaory OF June ~. 1874 10 adjudication beng
directed TO be entered The petltloniug creIor tLen
asked for the entry or an order of adjudication. Is 90
default for wan OF appearance H. his decision IA thla
case, Judge Batchford says;
The papers are IN due form under the statute ssN
soOd prior to IFS amendment by he act 81 Is' AMI bat
for the provisions Of the latter act the rgh TO al ada
dcation would he clear s"c,ion ~ o. tne ac o. lHf
adjudication in involuntary baHrrpc can be- maze or %
stue auHbe inl toe ysrs:e os.
debu P9y,be angeg tbs Ast 4ouaI r. o. o.
al cases pnIsory un;ar bs7supe began ae
enc. tia, dsis ani prior To- he Oas,,ee v-s.,
hereafter the Court sa sue liz. oe ;. - %. s. I'd
to that eject require ohsi'h toll he's b,
s .5eeSe and Sal ssoertan urou re5,c bo = @
s&hsr oneiourh 10 nombef ADD on,-,Lni n sn,aat
thereof as have ,oAs1 Tat tie debtor ge s"f
bankrupt Bl such debtor si the ding his rAtt . -
S sa e. ' c,a lte .., 11 he oa Va, No. 10 IA
faith shall audge which judgment shal he en-, -ri h .''
rroed without further steps that SUE Aud 8 lF sgeJ
h At .ncb na Der and amount ren ihe Court n
grant reasonable time not e1,es i,ng IN ea'e' o. "
JOIN in such petition eroon Of 'neb TIRE % u'd
a. gbal b
section he mater Of bnsrul,e ny pf9e ot' m re-
Quremens Of this section the grocedns' snail W 'A' al'a
section IS OF the act OF 1874 amending Section 80 Of tho
Ss, on L arn G Of ne order to show cause s
requirements Of secioa 80 Of ih aeh e = 4s
lumber ana aMoGn o. geuos ~ setos 30 II & s c,otr,
sudeat number AID amount shall s1a snee uAoa 20
the proyaole debts against the tansro9 a. p',' 10 80
wise shall proosag ANA c.ses hereafter te4ua -s
The nrovisio in respect TO all cases begun Dec 49,
1873 and prior the passage OF the act o IRA az wen
those begun after sueh passage, Is ths t"o u.,o -
TO be adiulged bankrupt on the petition OF one or
OF his creditors, who shall constitute ~
least III number OF his creditors ana the y,
whose dobis provable the act amounts 90 at east
onchir1 Of the debts pcoyable It u suggested at
lin, doe. NOT require that the petition shall show mat
the peiouluZ creditors constitute the prescribed mum
amount; that l. for tie debtor 70 come 49, "a
the first instance aud assert that the peuouhg cred
itors 90 not constitute the prescribed numDef ahd
amount. and that II he docs not theie neel W 10 ~
qlry into the matter cannot concur Ia ts 'o" anu
first: The reasonable construction OF the provision
that the petition be Tue petition OF one OF nore
OF the creditors, who shall CONSTITUTE gwen piODl.n,
number, or creditors, and whose pfoVaOit ufDts
shall constitute given proportion IN amount " pio's-
bic debts, is that the petition shall no; only enc" t
the petitioners creditors, and lost ana 10 "ua'
amount seVeraIly but sbsl also snow that .ey oOus'
tutc body who have right " mFoA5 reiel WHICH Vl
given only those WHO do constitute such bydy.
construction gwen to Section 80 as IL formerly
read and the forms OF petltOn pIeseIlCcu " wv, tao
Supreme Court require that the petition eIohlI contain
ITS face affirmative allegations OF the existence VI
all OF the facts which were necessary prerequisites 10
the right 70 ask for adjudication.
secondly: In addition TO this the provision is that
il ale 10 the number and amount OF pc
mnDl in Writing 10 t6st eject tae court snail require
him n.e ast OF his creditors, &c ii ls suggested
TO assert the petonng creditors do not constitute
the requisite numUer AID amount Bus tle statute SAYS
The use OF the phrase "such allegation clearly implies
that the allegation to be denied Is one made by the pt
f nn ereorsS that is TO be Denied denial INA
plies contradiction Of an assertion LIE assertion
IL is suggested that ina smuch as in de-
fault June 49, and the petitonng CTedOrs were then
entitled have adjudication, aud the debtor has not
appeared the atiOn ought now 10 be made. The
petition contains allegation that the pettIOnhs
creditors constitute the prescribed NUMBER ahu aiOul
TIE debtor has not been adJudged bankrupt ana the
provisions Of the act Of 1874 apply ef0re 10 TINS case,
It having been begun since Dec 49, 1873 But le statute
is very marked In requiring that the court sA" Lave
Affirmative evidence III the papers ON which makes an
adjudication; that the provisions oI tie statute as 70
the number aud amount OF creditors peutouing are
being complied WITH and sbal not necessarily icpoSe
admission by the debtor TO that effect much less
his failure assert the contrary or wL not alleged
admission by the debtor. II made must DC made IN
writing, and then the Court must be satisfied tbat Is
made IN good faith This Is undoubtedly IA 0rCer 10
prevent c0luson and because OF the provision OF sec
ton Of the act OF 1874, that IN cases OF hvoaut"
bankruptcy the bankrupt may receive discharge, II
otherwise entitled thereto, without pay ing any portion
OF his debts, and without procuring me assem- "a a5
portion OF hls creditors as c9hdioh OF MS unhe &C.
while. In OF voluntary bankruptcy, NO hdndcs
ton be granted 10 debtor whose assets are nor
equal to 80 per OF the claims proved against has
estate, upon which he Is liable as principal debtor WIN
assent OF at least onefourh OF his ereditOfsn
number. and onehird IN value Inc view seems 20 20
that II oneourth III number and onethrd In value oI
the creditors petition In Involuntary BANKRUPTCY lucy
shall be regarded under the PROVISIONS OF the statue -
onef0urtn In number and onethIrd IN Vaiuo
assent in voluntary bankruptcy. , -,
Again. section 10 OF the act Of 1874 requires thar the
be satisfied that the requirement. as to the num-
Der aud amount OF petltionng creditors has been CON-
duty OF dlsmssing the petition unless appears affirm
atiyely that such requirement has been complied @lh
state that the petitioners constitute the requisite mum
Der and amount of creditors, 1t must be held that "p
sh have the not ae only
act OF bankruptcy alleged in the petition Is. that
the debtor, being insolyent, suffered his property 10
be taken on legal process with the intent to give pref
erence TO Creditor and TO defeat the operation oil ne
Was wa. a LED. WAC 49, NV - ''-A''''''
GBy the act OF 1877. it is no longer made an act OF bank
ruptcy. The debtor being nsOlyent. must procure us
property to be taken legal process with tine intent 70
give preference, 10 defeat delay the operation Oh
the ac and all of the provisions Of the section OF no
act OF 1874 which specifies what Of bankruptcy
on which person be adiudged bankrupt, Uy Is
made applicable 10 the present case, begun SINCE Dec
1873. Therefore II the present petition Is 10 be pro-
ceeded with at ALL IT must in respect to the matter
alleged in 1t constituting the act OF bankruptcy sch
FORTH be answered b. averrng that the debtor procured
his his property be taken An amendment Ia thas
effect Will DO allowed to be made within the twenty
days before provided for.
The provisions Of the statute have been carefully con-
sdered in the above observations because the number
OF petitions involuntary bankruptcy flied ia this cOds
between Dec. 81, 1879 and June % 1874 Is $40 OF ths
number 9s discontinued. and IN lis others hdudr