The news and herald. (Winnsboro, S.C.) 1877-1900, 1880-11-30
n NEW BANKRUPT LAU.

~" S~"""Pt0 "ho WI HlHSpIiuIlonlO ~ $OuHS
men.
NEW BANKR UPT LAW.
Tho Proposed Measure Intended to Furnish
all tho Benefits of the Old Law, without
its Disadvantages.
Some months ago Hon. John Low
ell, United States Circuit Judge OF tho
Districts embracing Maine, Massachu-
sctts, Rhode Island and New IIamp-
shire, was solicited by the Board of
Trade Of Boston and other mercantile
associations to frame a bill for tho cs-
taOlishmcnt of uniform system of
bankruptcy in the United States.
With commcnt9able diligence the re-
quest was complied with, and Judge
Lowell presented the draft Of bill
for the consideration of Congress,
which his long experience OH the
bench had convinced him was great
improvement upon tho law of bank
ruptcy which has recently been re-
pcalcd. Copies Of the proposed law
were sent by a committee Of mer-
chants TO commercial associations.
registers in bankruptcy and many
Others interested in the subject, with
a request for their criticisms. The
answers received were generally ia
vorablc to the plan of tho proposed
bill, but many valuable suggestions
were made rs to matters Of detail. and
these have been incorporated IN the
text of new bill, which will be
brought forward at the next session
OF Congress-, In drawing up the
present bill, tho language Of tho old
law has been followed rs far as practi-
cable, in order that Use might be made
Of the numerous important decisions
constituting that language under Il
former law.
Ia Section 9 It is provided that all
State courts nrc to have full iurisdic-
'ion Of all actions between party and
party under the law, US distinguished
from mere proceedings in bankruptcy.
Sections II and II provide that the
circuit courts hnve supervision over
The district courts, rs under tho form
cr law, in all proceedings in bank
ruptcy. and appellate powers on ac-
tons at ,aw and equity, if mora than
5000 sin dispute.
Tie registers arc made salaried off,
GERS instead OF receiving payment for
their services by fees. aud their pow
crs are very much increased. They
are TO hold meetings and hearings in
the various parts of their districts in
Such manner rs to afford tho greatest
practicable facility to the suitors. Sec
tion ~ reduces the clerks fees TO as
low point rs is thought to be prncti-
cable consistently with tho general
law, and they arc to issue notices
which were formerly issued by the
marshal, and the latter officer will not
be employed without special causc.
The 25th section provided TINT the
attachments and transmissions made
IN secret may be availcd OF within
three months after they have become
public by record, and so forth. The
fFHasSSS SYJbfc ii Mas eH2SSSshendfa 9f 2nsPs gP
creditor Ind power to put q debtor
into bankruptcy, is met by requiring
that al least thrco should join in tho
petition whom there arc moro than
twelve creditors in MI.
Sections 80 and 80 provide that tho
| cholco OF an assignee shall be made bv
the creditors, and that every assigned
shall give bond, and that small crcdi-
tors who arc to be paid in full shall
have no vote in such election. If a
Judgment creditor has seized the prop
erty, his lien will be dissolved, and tic
property or the money in the shcritl's
hands shall belong to tho assignee
provided, however, all the creditors
cost shall be paid out of it. Section
"a, in tho case of traders, provides for
the exemption of their property from
tho operation of bankruptcy upon the
footing of the State laws to the extent
OF $500, and the State laws are left in
full operation as to persons who are
not traders. Under tho bill as at
present proposed, the powers Of as
siSnces are the same as under the old
law, and provablc debts are substan-
TALLY tho same. Privileged debts arc
the same rs under tho old law, except
that one per cent. is to be paid tic
government to meet the expenses in
bankruptcy.
Composition is put upon an entirely
different footing from that which It
had under the old act. The purpose
OF both is the same; namely, to enable
blameless debtor to arrange to the
satisfaction Of his creditors without
the expense and delay of proceedings
of the most formal character, and
thereby to save the good will of his
business, while he gives his creditors
as much rs they could possibly obtain
under the delays of bankruptcy. TO
guard the rights of creditors, it is pro
vidcd that at least one-third of the
composition is to be paid in cash. and
that the rest should DO fully and am
ply secured to the satisfaction of the
creditors and the court; aud when this
is accomplished, the debtor assumes
his full rights as trader, without
further embarrassment, and receives a
regular discharge rs if hc Ind gone
through bankruptcy. In deserving
cases, ho is allowed to manage his
estate, under the direction Of the
court, until the composition is agreed
10 or rejected. Under tho provisions
OF this proposed new law there can be
10 doubt that the honest debtor will
obtain his discharge more readily and
~ less expense than under tho old.
The risk of creditors to have q debtor
made bankrupt is substantially like
that under the law of 1867. 10 meet
q kind Of fraud and oppression which
IS but too common, it is made q crime
III creditor to take payment for any
ACT Of Inrbcarance in tho course of the
proceedings. or moro than his share
OF q cpIuDOSiliOn