The New York herald., 1874-11-14
COMPOSITION In BANKRUPTCY

In tho United States District Court yesterday
Judge Blatchtord rendered q decision In the
matter OF John B. Gilday, q bankrupt This 10 q
question arising In proceeding Tor composition.
The bankrupt has thirteen creditors, whose debts
are each over $50, and amount in ALL to Sa 346 Il.
He has ive other creditors, whose debts are each
not over $50, ana amount, In all, to $14e 81. The
total debts OF the eighteen creditors amount TO
$S,4o1 66. The resolution for composition was
duly adopted BY majority In number and rnree-
fourths In value Of the creditors OF the debtor
assembled at the FIRST meeting. The resolution has
been confirmed by the signatures OF the debtor
ana OF eleven Of the thirteen creditors whose
debts are each over $780, the debts OF such eleven
creditors amounting to 1916 23. The resolution
has also been confirmed BY the signature Of one Of
$50, the debt OF such one creditor being $34 A.
The debts OF the twelve creditors who have signed
rupt has eighteen creditors IN number. TwO-thirds
IN number OF eighteen creditors are twelve. To
MAKE max up tne twelve requires the creditor whose
debt 10 $34 4S. therefore, In making up two-thirds
one creditor whose debt does 'AG not "nels. sx.
The bankrupt contends that sSe i've
cre0itOrs, whose debts do not exceed $50 each
S e Il Z e e 81 s 1
such whole number IL eighteen, then, as such Of
tne M nve as DO not SIGN In confirmation necessa-
one OF the five who signs In confirmation must be
Teck0ned as part OF the aJority OF thirds II
thirteen az the whole number, being the thirteen
whose debts each exceed $50, then, as eleven of
those thirteen have signed 10 confirmation, the
necessary tw0-thirds In number OF tine thirteen
have slgned. The converse Of the vie VS. contended
for BY the bankrupt is that the resolution must be
twelve Of the entire eighteen, and that eacn one
OF the twelve must be q creditor whose debt ex-
Seeds @ $40 $So IN wnicn case this resolution has not
This case has been before Register Dwight, and
ne certified TO the Court the number Of creditors
Does the act require the resoint.on OF compost
creditors Or Of those crsditors only whose debts
exceeded the sum OF $50 eachf 1r~
be bsa nat uuss ns o al
$50 each must be reckoned, while in computing
number those having debts not StA s1cesG. sS1c
Ing $50 must not form part OF such
Of the creditors would nave q deDi exceeding
geo. There would be numerous credltors but as
OF the two-thirds the assent OF two.thfds In
number could never be obtained. Or. the num-
bers ~ the present case might be reversed. There
ing $50 each, and i've with depts exceeding $50
each. There would be eighteen creditors n sIl.
thirds and thus there never could be the assent OF
two.tnrds. The language OF the statute fs iuIy
sssn Te ~ o the usUoi % nas sucn
calculating majority" creditors whose debts do
not exceed $50 each shall be reckoned In caIcu-
latlng the majority in value, but shall noe be
reck0ned IN calculating the majority n number.
IL requires no atned reading OF toe statute to
between the word I'm" and the words sstne
majority" Such Is the sense n the entire clause
be read as whole, without the insertion oil the
word 'caicuiatingn In these places and the inser-
ti0n OF thar word only makes more evident what
e really the meaning Of the clause as . whole. As
In this case the number OF all the creditors to be
reckoned was thirteen. because there were only
thirteen whose debts exceeded $50 each, ana az
eleven OF those thirteen sgned In confirmation,
the resolution was duly confirmed by the sigma.
lures OF twotnifds OF the thirteen, ana the proper
order viii be entered, calling the second meeting
or the creditors.