Western sentinel. [volume] (Winston [i.e. Winston-Salem], N.C.) 1856-1886, 1878-05-16
The Bankrupt Law Re.
peal.


| The following disp atch came TO
US last evening from our Senators.
at Washipgto,
WASHINGTON, May G.
MEssRs. EDITORS The bill repeal,
ing the bankrupt laH is not finally
disposed of.
We have just been informed bv
Chief Justice Waite that be had de !.
cided case iu Virginia, in re Deckert.
vol. 10, Bankrupt Register, page 1 :,
that the provision in the bankrupt
law making exemptions against old
debts is unconstitutional.
| There has heen no decision by the
United States Supreme Court on this
point. NJ. w. Ransom,
A. S. MERRIMoN.
In re DANIEL DEEKER1
Waite, Chief Justice.-Deckert was
adjudged bankrupt upcn his own pc
tition on tie 31st of March, 1878. An
assignee was appointed May 16, 1873,
to whom lie assigned his real and per-
sonal property in due form. So much
of the personal property as was ex-
empt under the bankrupt law was du
" set off by The assignee. Its value
was estimated al S337.75. The bank
rupt. however. claimed a homestead
exemption in the real property uuGer
the provisions of the Constitution and
laws of Virginia and the act of March
8. 1873, amendatory of the bankrupt
law and on the goth Of August, 1878.
he filed his petition in the District
Court of the western District of Vir.
ginia to have such homestead set off
to him. On the 3Oth of August, an
order was made by that court grant
ing the prayer of this petitioner.
Certain creditors have filed petit
:ions for review of this order. The
cases made by the several petitioners
are as follows;
l. Henry Smith.-On the oath OF
January, 1868, the bankrupt and j.
l.. Deckert executed to Henry Smith,
at Chambersburg, Penn, a note for
the payment of 81 800 in one year af-
ter date. with interest.
BY Article XI, of the Constitution
of Virginia, adopted in 1869, it was
provided :hat every householder or
head of family should be entitled,
in addition to the articles then exempt
from levy or distres, for rent to hold
exempt from levy and sale under exc
cution, &C., issued on aEv demand fol
any debt heretofore or thereafter con
tracted, his real and personal proper
ty, &c., TO the value of $4,000, to be
selected by hun. An act of the Cen
eral Assembly of Virginia. approved
June 27, 1870, gave effect to this
provision by prescribing in what man.
ner and upon what conditions such
householder could set apart and hold
such exemption.
Under the bankrupt law, as origi-
nally enacted, there was exempted
from the assignment of property re-
quired to be made by the bankrupt tC
his assignee, arnonI uther stitch prop
erty as was e1emp: from levy and sale
under execution by the laws Of TIL
State in which the bankrupt hat bis
domicile at the time OF the commence
ment of the proceedings in bankrupt
cy, to an amount not exceeding thai
in force in the year 1864.
By an amendatory act passed on the
9Th of June 1872, this provision was
changed so as to give the bankrupt
the benefit of exemptions uEder laws
in force in 1871. In 1872 the Cour
of Appeals of Virgin ia unanimously
decided t22 Graft. 266,) that the pro
vision of the Constitution just referred
to, and the statute giving effect TO tb'
same, SO far as they applied to con
tracts entered into, or debts contrac
ted before their adoption, were in vic
lation of the Constitution OF the Uni
ted States, and therefore voids Al
ter this decision, on the ad of March
1878, Congress passed another act II
: the following words:
: s'Be 1T enncted, &c That it was III
true intent and meaning Of an act ar
prove,! June 8, 1872, entitled, &C
. that the exemptions allowed the bank
4 rupt by the said amendatory &C
should and it is hereby enacted tina
they shall he the amount allowed D.
the Constitution and laws of eac
State respectively as existing in tn
year 1871 ; and that such exemption
be valid against debts contracted he
" fore the adoption and passag. Of sue
State constitutions aDd laws, as we
u as those contracted after the same
r and against liens by judgment Or de
e cree of any STATE court, any decisio
Of any such court rendered since th
= adoption and passage Of such Cons.
tuition and laws to the contrary no
!" wltnstahding." -
(. The power to except from the cpt
" ration of the law property liable
/ execution under the exemption Law
of the several States, as they Wei
= actually enforced, was al one tin
n questioned upon the ground that
~ was violation of the constitution
. :, requirement of uniformity, but it b;
~ thus far been sustained for the reaso
III that it is made rule of the law.
% subject to the payment of debts und
its operation only such property
at could by judicial process be ma'
b available for the same purpose. Th
n t. -, J<Rxf - ~,