The New York herald., 1874-09-03
THE NEW BANKRUPT LAW,

Judge Biatchford has delivered an opinion In the
bankruptcy case OF Charles j. Francke, Jr, and
Charles +. Francke, which contains one important
feature, in view OF the recent amendments to the
law. The facts OF the litigation, as stated in the
opinion, are briefly these: The bankrupts were
adjudged as copartners by the Court on the
2Sth OF June, 1872, on petition fled against them
They appeared and FLED q written consent to an
adjudication. warrant was issued, and the 1rst
meeting OF creditors was held on the I'd OF August
1872. on that day thirty creditors proved their
debts. An assignee was elected by the votes Of
twenty-seven OF these. On the 10th of September
1872 the bankrupts fled their sworn schedule Of
debts and assets. On the 23d Of July, 1874, and
not before, they filed petition for discharge. BY
the 24th OF July, 1874. forty-four creditors had
proved their debts. The hearing IN the petition
Tor discharge was fixed for the 18th OF August,
1874 No creditors appeared to oppose discharge.
The assignee has received moneys belonging to
shown that the assets OF the bankrupts are equal
to fifty per cent OF the claims proved against
their estate, upon which they are liable as
principal debtors, nor Is IL shown that the as
sent IN writing Of majority In number and
value of their creditors to whom they have be.
come liable as principal Debtors and who have
proved their claims, was filed at or before the
time OF the hearing OF the discharge. According
aG e 5Ss
these facts the Register certifes that the bank
rupts have conlormed to their duty under the act
OF 1858 no discharge could be granted to debtors
whose assets were not equal to fifty per cent OF the
claims proved against their estate upon which he
shall be liable as the principal doctor, unless the
assent in writing OF q majority in number and
value OF his creditors to whom he shall have be-
come liable as q principal debtor, and who shall
have proved their claims, be flied at or before the
time of hearing the application. BY the first sec
ton of the act OF July H. 1870 it is declared that the
provisions OF the second clause OF the thirty
section Of said act OF 1867, as amended by the first
section Of the act OF 1858 shall not apply to those
debts from which q bankrupt seeks a dis
charge which were contracted prior to the lst
OF January, 1869. The requirements OF the act Of
1868 apply to all proceedings In bankruptcy"
commenced after the 1st OF January, 1862 whether
the petition be one filed by or against the debtor.
Under these requirements the right to discharge
IN this case Is not shown; but the certificate Of
the Register implies that 1t is supposed that be-
cause this ls a case OF compulsory or involuntary
bankruptcy discharges may and must under the
act OF June %, 1874, be granted without compl
ance with the requirements of the act or 1868.
Judge BlatchfOrd has written lengthy and elab-
crate opinion on those points, and the document
was yesterday received by the Clerk Of the Court.
He holds IN this case that the provisions OF the law
of 1868 must be complied with before a discharge
in bankruptcy can be obtained and the decision
or the Register in Bankruptcy Is overruled. This
Is the main and only point decided The opinion
in this connection Is important to those OF the
legal profession and business men generally who
are interested in bankruptcy matters.