The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-07-17

/ TO put sucJ cases upon the footing OF nss
cases so as 10 enable thento partidDat
equally In the benefits Of the new provisions
But It is implied from the nnture OF fbe pro
| ceedings, and the steps that are prescrloe'
to be taken In respect 10 both old ana new
! cases, that by the language q1oted congress
| contemplated pending cases IN Wntch no 40
Indication bad yet been made. The law re
quires the adjudication to be made upon III
petition of creditors, and as amended requires
given portion OF the creditors to concur
und limits the time within which, both as t
old and new cases, the requisite number ant
amount must join in the petition. The court
determines whether the requisite number
and amount have or have not petitioned ii
they have, the matter proceeds, and the adj
Indication will or will not be made, depend
ing upon whether the alleged acts of bank.
ruptcy are or are not established. On the
other hand, If the statutory requirement rs
to the number and amount Of creditors is
not met, the provision is that the proceed
ings shall be dismissed. All this clearly
shows that Congress had in contemplation
cuses in which no adjudication had been
made, for these steps are ali preparatory TO
an adjudication, and this view Is further
confirmed by the provisions of section 13
amending section 40 Of the original act.
Besides, it is impossible to suppose that
Congress overlooked the fact that through
out the United States, between December
and June, there were many hundred cases
in bankruptcy in which udjudications had
been made and which were in various stages
of progress, some in which little had been
done, others in which property had been
sold, suits decided and dividends made, but
which were not yet entirely closed. II
it bad been intended by Congress to annul
all that had been done under The bankrupt
act since the first day Of December, over
turning adjudication, and disturbing settle
ments, payments, dividends, conYeyanceS,
&C., il is quite incredible that provisions
would not have been made for this extraordi-
nary and confused state OfafllirS. The amend
atory act is silent as to the rights and RENE
dies of the various parties who would be NJ
fected by legislation, having this grave and
extensive retrospective operation. The argyll
ment. then, is strong one that no such con-
sequences were intended; and the more so
since the retroactive provisions may have
full effect given them by holding them as in
tended to apply to all cases commenced since
the first day Of December, which had not pro-
crossed 10 an adjudication at the passage Of
The amendatory act.
am of opinion, therefore, that the orders
Of the District Court in each Of the cases
under review were erroneous, and they are
accordingly reversed. These orders were
purposcly made as they were, not as neces-
sariIy embodying the opinion of the District
Court, but that they might present for re-
view cases which would measure the scope
ofthe retroactive operation of the amenda-
tory act. Aud what hold is that it does not
affect DEGREES or adjudcatons then made,
while conceding that its remedial provisions
do in many respects apply to cases brought
since December 1st, and which were pending
when it went into operation.
Orders reversed.