The Northern Pacific farmer. [volume] (Wadena, Minn.) 1878-1885, 1881-02-17
INSOLVENCY IN MINNESOTA.

INSOLVENCY IN MINNESOTA.
Abstract Of Carefully Prepared Bankrupt
Bill Unanimously Endorsed by the Senate
The following is an abstract of the bill intro
duced into the senate by senator Buck Of Blue
Earth: ,:
Section l. Whenever the nronertv Of anv debtor
is attached levied upon in favor of any creditor.
such debtor may, within ten days after the levying
OF such attachment, make an assignment Of all his
property for the equal benefit of all his creditors
which assignment shall be made in accordance with
the law of the State relating to assignments made
by debtors. and upon the making of such assign
dissolved.
Sec. 2. When any debtor being tnsolvent shall
confess judgment, or 90 any act or make any con-
veyance whereby any one Of his creditors shall obs
tain preference any other of his creditors, or
shall omit to do any act which he might lawfully do
to prevent any one OF his creditors from obtaining
preference over his other creditors, contrary to the
intent of this act, if he shall not, within ten days
after any levy by attachment, execution garnish
ment made against him, make an assignment as pro-
vided in this act, or within such time IN good faith
institute proceedings to vacate the attachment and
execution or garnishment or secure arelease of such
levy, and defend against the said garnishment at the
first opportunity, then any two more Of his cred
tOrS holding and owning debts claims OF not less
than 5000 in the aggregate amount, may make a
petition to the district court or judge thereof set
ting forth In rein such matters and facts may be
pertinent, which petition may be heard in any
county in the discretion of the judge and after no.
tice given in pursuance of the order Of the court,
and in such manner the court may direct. to the
debtor and creditors sought to be preferred. of the
time and place OF hearing the court in term time,
a judge in vacation, shall proceed summarly
upon such petition to hear the parties and receive
such evidence may b. proper, and If it shall APP
pear to the court or Judge that the debtor is in'
solvent, or has been giving or is about to give a
preference any OF his creditors other of his
creditors, any of them. or has refused or neg
lected to make assignment of his prop
eSty as herein provided The SoIft or Judge
session Of all the debtors property, evidences of
property Indebtedness, books, papers, debts,
chooses in action, and estates OF every kind OF the
debtor, including property attached or levied upon
or Earnisheed and OF all property conveyed in vlo-
lation Of the provisions Of this act and have charge
and control OF the same. and OF all debts or prop
ertv garnisheed except property exempt BY law,
and shall within four months OF the time of his ap-
pOintment. unless the court or judge otherwise di-
reefs and allows further time, converts the same to
money, and shall distribute the same among the
several creditors in proportion to their severa!
claims, who shall file releases of all claims against
the insolvent debtor in consideration of the benefit
Of the provisions OF this ACT.
Section provides that no assignment hereafter
made shall give any one creditor preference over
another, except in cases expressly provided BY law,
and j; any insolvent debtor shall confess judgment
with intent to give such preference he shall be
deemed guilty OF nlisdemeanor and punished by
fine not exceeding $500 or Imprisonment in jail for
six months. The court may also restrain the debtor
from collecting any bills accounts or from dis
posing Of his property, or from leaving the State.
and may require him to appear and make full dis
closure to any matter pertaining to mis- property.
Sec H. Couveyances and payments made and Sc
cucites given by insol1en debtor, or debtor in
contemplation of insolvency. within sixty days of
making an assignment as provided in section of
this act, with view of giving preference to any
creditor upon preeXiStig debt, or to any persons
under liability for such debtor over another, shall
same, who shall have reasonable cause to believe
that such debtor was insovent, and all such cnn-
veyances made and securities gi ven at any time I'M
accompanied with aGevcry or change. Of possession
of the property 10 the grantee, unless the nstru-
ment containing the grant conveyance shall have
been duly filed or docketed before the commence
ment of such sixty days, shall be void AS prefer
ence to any creditor; and the assignee may BY action
or other proper proceedings have all such convey
ances, payments and preferences annulled and adj
Judged void, and recover the property so conveyed
or the value thereof, and recover the payment so
made, and convert all proceeds into money as pro-
vided in ibis act.
are to be commenced and the proceedings TO be
taken by creditors whose claims are disalowed, in
whole or in part. ~'.. 80;
Sec 10. No creditor of any insolvent debtor
shall receive any benefit under the provisions of
this act, any payment of any share Of the pro-:
ceeds of the debtors estate, unless he shall have
first filed with the clerk of the district court. re-
lease to the debtor of all claims other than such
may be paid under the provisions of this act, for
the benefit of such debtor, and thereupon, the court
or judge may direct that Judgment be entered dis
by creditors who shall have filed such releases; pro-
vded. however, that when any creditor Of such
insolvent debtor who has made such assignment of
his property, or OF whose property receiver has
been appointed as provided in this act, al
leges by complaint made to the judge before the
time for the distribution OF the inso!rents assets
among his creditors as herein provided, that such
insolvent debtor has fraudulently concealed, or
fraudulenty incumbered or disposed Of any of his
property with the intent to cheat and defraud his
creditors. such judge may allow the insofvent debtor
to appear before him, and after giving such COM
planning cree itor notice of the time and place of
hearing, the judge may, proceed upon such COM
being contradicted or denied, and may hear such
legal evidence he he may deem pertinent, relat-
ing to such fraudulent concealment or disposal of
said debtors property as alleged in said creditors
complaint and after said hearing said judge may, in
his discretion, order or direct that all of said
debtors property and assets, not exempt by law be
distributed among his creditors as hereinbefore
provided, upon their filing SUCH releases, or without
their filing releases as aforesaid.
Sec. II. Provides that the assignee or receiver
shah announce his appointment by advertisement
in paper at the capital and in one at the county
where the debtor resides, and all creditors must
then file their claims within twenty days.
Sec. L. Describes the order in wl!cE the as
sgnee receiver shall pay the claims, costs OF
action. debts due the United States, the State OF
Minnesota taxes and assessments coming hrst then
come the claims for wages OF servants, CLERKS or
laborers. for not more than three months preced-
ing the assignment, and the balance then to be dis
tributed among the general creditors under the
direction of the court.
A Mothers Influence.
Mr.. Wendell Phillips related the follow
ing in his address in Boston last week: I'm
a railway car, once, man, about sixty years
old. came to sit beside me. He had heard
me lecture the evening before on temper