, 1874-06-27
THE COURTS.
Important Decision on tho New
Bankrupt Law.
Mr. Bcammon Has tho Low on Els
Side.



Tho question In regard to tho practice un-
dor tho amonded bankrupt LAW ns to
tho tmo when tho consent OF onn-third
IN value and ono-fourth In amount OF tho
creditors should be obtained, whs concluded
yeBtertlay. Tho question WAS raised ThurBday
In tho case Of ]. Y. Bcammon. Ills attorneys
wlshod tho Judge to mako an order thai thu
poti&ioning creditor should amond his petition so
a. to show TINT onc-thirl In value mud ono-fourth
in amount Of his creditors had consented to tho
commencement Of tho proceedings. Thla VAS
resisted On tho ground that the law did
not require 1t, at lcast in casos already
begun, and Tint 1t was in nullciont time After
tho dobtor had filed List Of Lis creditors and
obtained = rulc nisi.
Yesterday b1r. U. r. Smith continued his areu-
mont Of tho day before. Ho hold that tho now
provision was matter Of defonso and avoidance.
If 1t we're not regarded go, 1t would lot open tho
door to great fraud and injustice, ~ 1t somo-
times necessary. as in tho caso Of IN Ascending
debtor, to flo petition without moments
time to hunt up other creditors and obtain their
consent. Again, to require man to etate that
ono-four1h in number and ono-thtrd In valuo,
OF the creditors. had consented, was
to compel them to swear to fact
le knew nothing about. Mr. Smith, however,
ing au ho closed TINT Le was on tho opposite
sldo Of the case In another petition, and that hc
did not caro- very much which way tho caso MAS
aec'aeQ. ,,-..,
j. n. Je"ott then arose and called tho attan-
ttoM OF tho judge AMI Bur to tho ClauHG In tho
tlirty-uilth section "if uucll allegation bo de-
med by tho dol,tor." This he said, was an in-
accurate choice of wortts. It hoelued to rotor
to sorno previous allegation whom thore
was none: an exa1h'natlen' however, "oaM
bor and ono.thrd ID value lad io}uod. aud II the
W"'a a hJs i wei9 ,t a u "gn!a ~ as. maze
,o. .Io huuso !, o o,oatc t % ~ LIZ Ms: o.n
elsn.d "an INV ,a 49,, ~ iaat ~ cases
particular numbers joining until the debtor alod
a schedule Of his creditors.
LAWYERS. Tho J,1dee deeInci to hoar anvthnr
"ra Ti from Nr Ayer or hahof ~, N1r so.n,n ,ms
and rendered an opinion in thoir favor. which NO
publiah in full, ao follows:
Dy tho recent amendments 10 tho bunkrupt law.
soc radical cEupHca ara made in Tho uroceedjra for
Involuntary Or compulsory bankruptcy.
Tho thlrsy-nintll Section h.s bcen ropoaled. and
stands amended, rarious acta arc declared acts Of
bankruptcy aud The lar then proceeds say tint any
lerson guilty Of aAd acta any q them, nhall 70
b. adiud0ed bsnkrut on the netsion Of ono or mara
Of his creditors who shall Constitute oae-tourth
thereof at least, IN number, and tho agoru-
Qato Of whouo jcbta nroyoGe under THU nct
1mo1,nfs to nt 1oast ono-tbjrd of tho deitt
60 proyablc, And thc proyisions Of thIs nscton
ahal apply 10 ali casrs Of compulsory or involuntary
bauhrupoy coumoced elnco tIe LAT lay of Decembcr
1878. o. we'll AZ thoas comtuonced hereafter And in
ali oases commenced since the 1st day of December
1874 and prior to The passage Of ths act as VOL al
thoso commenced hqrenfter the Court shall, II sacl
allegation AZ to tho number or amount Of psstioning
croators 10 aonsa, " s"semsnt II willing to sn1t
a, auaora ~ ~ .sot ~ .en. ~ raa aa
H. H. " snms iun .hcn3 rcanccvey md shalI naccrtain
uon rcxeonsbls 1sotieo to tue creditors whothsr one
fourth In nutnlor md onc-,hird in amount have 20
titioncd that tho debtor DO adjudRod bankrupt"
Iho luvstton now raised y whether caaes pending
W. IT, so s. o. M
o. ma 80 90 t. t. eSo .,irss.v.y shat ts reaa,ss
number Of creditors desire the debtor to bo adu-
Gated bankrupt, or must tho debtor in such cases OBJ
ject In the hrst instance and lilo scledulo Of his
cfG1itors3 IT,.
,.t,,;nr n,n" at,a.. " H.. ,st,or .hs. ~ ,,'ia
nnmInr Of cro@.ttnra iojn IN A4 tho o nct,on
Not tLat the creditors resltioning must swear
tu,sttycy TINT fhcy cnnsfffbto fnttrth in number