The New York herald., 1877-10-13
BUSINESS TROUBLES.
IMPORTANT DECISION Dz nxaIsrKs PITCH sos

IMPORTANT DECISION By REGISTER FITCH ron
THE PROTECTION OF CREDITORS.
Bernard and Ignatus Rice, dealers fancy goods at
No 373 Broadway, applied TO Register Fitch for their
discharge from bankruptcy, who refused allow their
release and decided examine them tho assignee
had not taken any steps 10 recover the properly which
the bankrupts had turned over TO LOUIS Stein
BACH The baukrups applied tho United States Dis.
compel Register Fitch mako the nsces.
sary order for their discharge but The Court denied
their motion and affirmed tho ruling Of the Register
Ia submitting tho Register Fitch said 10 his do
c,sion :-''Ihe property conveyed by the bankrupts
under State assignments TO LOUIS stcinbach
nbo, and at once that the sufficient,
II properly handled by an assignee IA bankruptcy 10
pay very largo dividend to the bond tide creditors
Upon examining the bankrupts' schedules saw that
IL tho bankrupts should be examined, and unless IN
exam,naon was had by the assignee or creditor, IL
was my duty TO examine them my own motion, In
order that the Court might know oi the disposition
made OF these assets, and what dividend, f any, was
TO be paid to thor creditors by the State assignee.
IL has become almost tho universal practice In
this city Tor merchants, knowing themselves 70 DO
insovent and bankrupt, to purchase merchandise 10
thsn execute general assignment 10 soma personal
trend who takes possession Of the ELECTS AID oontln
uss She busness tho assignee remains IN the store as
Al tho expiration OF SIX months their friends unite
aud put them into involuntary bankruptcy, from which
they discharged and their general credtors do nos
receive any dividend whatever Tho assignee, uader
tue State aw. has one year before any creditor oen
IN the Counly Court by petition. Il found ref
appo ntcd and regular trial had. with bill OF
costs VI $500 more Such state OF Affairs SO dis
courages creditors that they give claims and let
the STATE assignee keep the property and pay oat what
OF thu Clerk OF the Court OF Common Pleas IN this
county will show much larger amount Of property
amoun. Of which ths community has been ROBBED By
| fraudulent lie INSURANCE. companies, savings banks
shocks moral sense and has demoral-
ize and destroy the common commercial honesty Of the
| ommunity than all tho other crimes which have boon
committed, and u Is high tmo that this Court should
know IN what manner the estates Of insoivents arc
used before thcy or are put into bankruptcy BY
State assgnccs. In this case intend 10 examine tho
bankrupts under section 50S6 OF tho Revised Statutes
then send all The proceedings facts tho Dis
trct Court with the proper certlhcatc OF conformity
Conformity means that tho bankrupt has honestly
conformed with all the provisions OF tho Bankrupt act
OF the Revisoi Statutes, i,sio bankruptcy iur.her
certify under the provisions BAnkrups
| arc honestly managed and properly distributed in
whose hands soevsr they may boz that the Register Is
Surrogatcs by the laws oil this State TO the prop
erty and interests Of heirs and minors and II 70 tho
duty ofthe Register TO that their rights arc pro-
tected their property secured to them and in case the
Register cannot do to report the acs 70 the District
Judge with all the proceedings in tho case and that
when bankrupt asks 10 be discharged he must SUBJ
init himself TO be examined with view 70 show
whether pc has. made full and iair surrender"
meeting Of tho creditors OF onion Cornwar,
dealers IN guns ut No Is Warren street. held yes
tcrday The OF the Hardware Board OF Trade.
The committee appointed ~ The previous meeting 70
investigate the affairs OF the firm reported Ia favor o
accepting settlement NJ forty cents cash on tho dol.
lar Ia iu for all claims, and this agreed 70 by
! majority Vi the creditors present
Register Alien has adjudicated Nelson Sizer, phre-
noiogst, OF No. 1877 Broadway. voluntary bankrupt
on ms own petition HIS iiabiiities amount 10 about
Sl5 000 ana distributed among fourteen crediors
principally in Brooklyn Tho following aretho claims
| of tho largest croditors:--tieorgs N. Haliocg,
81, 209 10; Harriet G. lie sage, ~ BOO; Lcsor Rob
erts, $1,000; southoId Savings Bank $1,000; Com
nerclai Bank OF Brooklyn, $l.475; Putnam County
| National Bank 81, 500; Brooklyn Corporation.
$500 80. Register Allen has called tho nrs msstng o
creditors elect and prove their claims,
Ia be held October 20. His assets are merely NOM
| inaL
Stanley A. Dayton, broker. Of No. ~ Pine street.
who failed In February, with liabilities amounting to
fl25,o00, made app caton to Register Fitch yestcr-
day has discharge from bankruptcy, and as tnero
opposition the part oil tne creditors his Peti.
| ton was granted.