Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-08-10
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LAWS OF THE United STATES
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Of bankruptcy throughout the United s txtes,"
approved March second, eighteen hundred
and sixty seven, and for other purposes
BE tf enacted BY tAe Sen1te and House q Repre-
sentattres Of the United States Of <nerIcG Cow
20 establish a uniform system OF bankruptcy
throughout the United States, A." approved Msrch
second, eighteen hundred and sxty-seven, be
mented rs follows: That the court may, In il.
discretion, on sufh cient cause shown, aud upsn
notice and hearing, direct the receiver or
carry on the business of the debtor, or any part
thereof, under the direction OF the court, when,
in its Judgment, the interest OF the estate as
well a. OF the creditors will be promoted there.
by. but not for a period not exceeding nine
months from the time the debtor shall have
been declared bankrupt: Provided, That such
satisned that it Is approved by majority in
value of the creditors
SEC. .. That section one of said act be, and IL
is hereby, amended by adding thereto the fol.
lowing words: 80 Prortded. That the court having
charge Of the estate OF any bankrupt may direct
that any of the legal assets or debts OF the
bankrupt, As cobtradistinguished from eq uitable
DC msnds, shall, when such debt does not exceed
i've hundred oollsrs, be collected in the courts
OF the State where such bankrupt resides
having jurisdiction of claims OF such nature and
amount"
SIC. 5. That section two OF said set be, and II
hereby n, amended by suikipg out, in line ten,
the words " the same, aud inserting the word
"any'; and by adding next after the words
adverse interest,"" in line twelve, the words
or owing any debt TO such bankrupt"
SIC. 1. That unless otherwise ordered BY the
court, the assignee shall sell the property OF the
bankrupt, whether real or personal, at public
auction, in such parts or parcels and st such
times and places as shall be best calculated TO
produce the greatest amount with the least ex-
pense. All notices of public sales under this act
by any assignee or officer OF the court shall be
published once a week for three consecutive
weeks In the newspaper or newspapers, TO be
designated by the judge, which, in his opinion,
shall be best calculated 70 give general notice
of the sale. And the court, on the application
OF any party liz interest, shall have complete
supervisory power over such sales, including
the power TO set aside the same and to order 4
resale, so that the property sold shall realize
the largest sum. And the court may, In its dis
or any part thereof, TO be sold for one fourth
cash at the time Of sale, and the residue within
eighteen months in such instslments as the
court may direct, bearing interest at the rate OF
seven per centum per annum, and secured by
proper mortgage or lien upon the property SO
sold. And II shall be the duty of every as
signee TO keep regular account OF all moneys
received or expended by him as such assignee,
to which account every creditor shall, at rea-
sonable times, have free access. III any assignee
shall fail or neglect TO well and faithfully dis
charge his duties in the sale or disposition of
property as above contemplated, IL shall be the
Saty OF the court to remove such assignee, and
which he might be entitled in connection with
such sale. And ii any assignee shall, in any
nnfa1lr or nsfDIr s Sl n nS aq1S sfSressG
any manner frsudulently or corruptly combine,
conspire, agree with any person or persons
with intent to unfairly or wrongfally sell dis
pose of the property committed TO his charge.
he shall, upon proof thereof, be removed, and
forfeit all fees or other compensation for any
rupt's estate, and, upon conviction thereof
before any court of competent jurisdiction,
shall be liable TO a fine Of not more than ten
thousand dollars, or imprisonment in the peni-
| tertiary fo- q term of not exceeding two years,
or both tine and imprisonment, at the discretion
OF the court. And any person so combining,
f-frn
| the purpose aforesaid shall, upon conviction,
be liable to like punishment. That the as
signee shall report, under oath, TO the court, at
least as often as once in three months, the con-
dition of the estate in his charge. and the state
of bis accounts in detail, and at all other times
when the court, on motion or other wise, shall so
1 order. And on any settlement of the accounts
of any assignee, he shall be required TO account
for all interest, benefit, or advantage received,
or in any manner agreed TO be received, directly
| or indirectly, from the use, disposal, or pro-
| ceeds of the bankrupts estate. And he shall
l be required, upon such settlement, to make
l and file in court affidavit declaring, accord
| ing to the truth, whether he has or has not, as
the case may be, received, il or is not as the
| case may be, TO receive, directly or indirectly,
| any interest, benefit, or advantage from the use
| or deposit of such funds; and sucn assignee may
| be examined orally upon the same subject, and
II he shall wilfully swear falsely, either in such
| affidavit or examination, or 10 bis report pro-
| vided for in this section, he shall be deemsd to
be guilty OF perjury, and, on conviction thereof.
be punished by imprisonmentint the peniteutisry
L
| SIC. 5. That section eleven OF said act be
amended by striking out the words "ss the
| warrant specifies" where they first occur, and
| inserting the words "as the marshal shall Sc
| lect, rot exceeding two;" and inserting after
1 the word "specihes" where IL last occurs the
words But whenever the creditors OF the
i bankrupt are so numerous as TO make any no
tee low required by law 10 them, by mall or
| Otherwise, great and dispr0portionate expense
TO the estate, the court may, in lieu thereof, in
| It's discretion, order such notice 10 be given by
/ publication in a newspaper or newspapers; 70
all such creditors whose claims. as reported, do
not exceed the sums, respectively, OF fifty dol
/ lars"
| SEC. 6. That the first clause of section twenty
| OF said act be amended by adding, at the end
thereof, the words ''or in cases OF compulsory
| bankruptcy, after the act of bankruptcy upon
| OF in respect of which the adjudication shall be
/ made, and with a view OF making such set-of."
mtntd t ma seS1En We OF ss,a ACT De
| line Elk, Immediately after "thereby:" "But a
/ creditor proving his debt or claim shall not be
| held to have waived his right Of action or suit
against the bankrupt where a discharge has
been refused or the proceedings have been de-
termined without a discharge"
added to section twenty-six Of said act: !" that at
| in all causes and trials arising or ordered under
| this act, the alleged bankrupt, and any party
| thereto, shall be a competent witness"
SEC. 9. That in cases OF compulsory or invol-
| untary bankruptcy, the provisions of said act,
and any amendment thereof, or OF any supple
proportion of the debts of the bankrupt, or the
assent of any portion of his creditors, as a con-
dition Of his discharge from his debts, shall not
apply; but he may, if otherwise entitled thereto,
| be discharged by the court in the same man
| rer and with the same effect as if he had paid
such per centum of bis debts. or as il the re-
| quired proportion of his creditors had assented
thereto. And in case Of voluntary bankruptcy,
| 10 discharge shall be granted to a debtor whose
assets shall not be equal TO thirty per centum
| of the claims proved against his estate, upon
/ which he shall be liable principal debtor,
without the assent of at least one-fourth Of his
creditors in number, and one-third in value;
and the provision In section thirty three of said
act Of March second, eighteen hundred and
sxty-seven, requiring fifty per centum Of such
assets, is hereby repealed.
| SEC. 10. That in cases Of involuntary or COM
pulsory bankruptcy, the period of four months
mentioned in section thirty-fye OF the act TO
which this lie an amendment is hereby changed
to two months; but this provision shall not take
effect until two months after the passage OF this
act. And in the case aforesaid, the period of
six months mentioned in said section thirty-five
is hereby changed to three months; but this
Il pr0yisiOl shall not take effect until three