The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-01-11
q, grafton as 10 persons who are not

| fore, thoy VIII now be unuet tho direction o
salsried register and supervisors, who vii
have no possible interest IN encouraging do
lay or expense in litigation, or other ways.
Section 90 Debts. Provabo debts ar
substantially the same ss under tho old law
except, that If 3 ia igmertis obtained, PEND
ing the proceedings, il is a proysble debt
watch Tas difficult and debated point IN
dor tha old law.
Section 81 (Loases, Rents). Under the form
or law there was great difficulty in arranging
tho rights Of landlords and tenants, becauE,
future rents sre not proyable debts, an;
the owner of tho estate could hold thi
bankrupt, upon his covenants, to pay rent
even after his discharge. By this ssetior
the le0sl is 10 DO considered surrendered
uHless tho assignee cho oseG to adopt IL, and
il the landlord suffers By tho surrender, h
may prove his debt aad take dividand, and
the bankrupt will be discharged from fur.
Their liability for rent.
Section 81 Prsierred Credtors) A pre-
fsrrsd creditor BY this section can prove no
debt until he has surrendered his preferences
Under the former law no could prove any
other debt except the ono upon which he
received preference,
Sections 90 TO " (Sureties, &c) are sub.
stantially like the former law, except that
tho modes Of proceeding Rre somewhat sta =
plifad, and, it is supposed, improved.
Section 70 privileged Dtbts) Privi-
legged debts Gro the sama 0s under tho for
NOR Law, except that opo per cent
is 10 be paid the government, to
maet the sslarias Of Tia officers, asd
other expenses Of bankruptcy ia addition to
the money ptid N IN tho first instance
Section "A privileged Debis) Expense
may BIO saved by ordering payment Of the
privileged debts without going through the
form OF drawing dvilead Sheet a1a d.
clsriHg dividend.
Section rs (AcCoua.s Of AFsigncg3) Econ
omy and dispatch are provided for ny die
perslns with all meetings pftor the FIST, un-
less there u soma OCCASION for Thorn.
bettioa 70 (Acc3uu,s Of Assignees). Il ia
provided that tho compensation Of assigness
should be left to a vote Of the creditors, sub
lact to the supervision Of the register, or
jqdge, or both.
Section rs (Uuclsimed Divdands) Is uea
provision for paying over TO tho United Stetes
dividends which remain unclaimed for six
wears. There ara small sums row in the
registry OF most OF tho courts, remaining IS
unclaimed dividends under tho act of 1871.
which must remain there forever, unless
soma act of congress is passed upon the
tubsc.
Section 70 (ProrerSi,css and Fraud. on Tao
hel) IS substantially like the former law, OK
cepL that If u creditor Wko has received 4
prel9 ence, shelI afterwards extend further
credit to tho debtor, without security, he
may set of the amount Of that credit agsiss.
tbs former preference.
Sections 50 aud So (Di'charga). The Law
dtlera from the act of 1867 in not rsunire
The payment Of any dividend, or tho sgsni
Of creditors, if tho bsakrups has bean kSse,i
and fair in his doaingi THE cxpsdiency OF
tihIS IS an open question: IT /. found that
IN many cases, the assent Of the largest ccldi-
tors, which virtually controls tho action Of
tho rest, is procured by promise of future
advantage; this loads to tho puchssn
OF those creditors who aro tho lea,t
and least deserving M
the expense of tho roat. This law
IS based upon the theory that On honest
debtor who has surrendered all his pronsrty
and faithfully assisted in the settlement of
MS estate, should not be subject TO tho On.
prices or enmity OF any creditor. A de tor
Is not to have lis discharge who has com.
united any frauds which arc made criminal
In this act (seo section 1927, who hes failed
TO OBEY any lawful order Of the court; who.
pelng q adar N any considerable amount.
has failed to keep proper books of account,
or VINO has Giyon any preferences which
nave not been surrendered by the proferrsd
creditor (see section 70).
Section sc Discharge. Creditors who's,
debts ars not on the schedule ers not to hava
their debt wholly discharged unless thew re.
celvs actual notice or Knowledge of Inc
bankruptcy 10 'ssson to avail themselves Of
IT'S benefits, but thsy may recover d!vidond
~ II they had proved.
Sec'ioa 80 Nov promso) is new. AVID i,
intended to prevent thu numarous fraud,
winch arc perpetraied under Tho guiss of now
promises creditors taking those promises 80
consideration for Indulgence ia tho bank
''cY' and pretending that they we're sivon
at't aids.
! ectioul 90 to 1Ol (compoiiion) com.
poa.on Is put upon nm entirely different
iooIinng from tuo' which IL had uBdsr the old
o2I The purp Of beth is the samo, namely,
l9 enable u bllmelass debtor to arrange 10
the satisfaction Of hiJ creditors without tho
expense and clay of proceedings Of tho most
formal character and thereby TO awe the
good will Of his business while he give, his
creditors IS much, and usually li.tie more.
than they could possibly obtain under the
delays OF bankruptcy. To guard the rights
OF creditors, it is provided that, at least. one.
thl1u OF inc composition is to be paid in cash,
and TINT the rest shoald be fully and amply
secured to tho satisfaction OF the creditor,
ana inc court; and when this is accomplished,
mo debtor resum's his full rights as tradsr'
without further embarrassment, aud received
regular discharge as if he hSd gone throuvh
bankruptcy. In deserving cases he is ALLOWED
10 manage his estate, under the direction of
the court, until the composition is srreed In
or rejected (see secSon 55
Section l02 Grimes. Tho law is aemcvhat
changed here TO give tha courts Of the IJnitad
ota'es jurisdiction, which it wss decided that
they could not bavd under tho former law.
because several of the frauds that were man,
tlened IN that hs1 no special rofereaoe Ia
bankruptcy, aud all this jurisdiction Of the
United States court could uadsr tho ssc,ion
Of tho constitution which gives congress tho
right to pass uniform laws on tn, subisc. Of
bankruptcy; al these crimes. therefore, ara
brought IN direction with bankruptcy or in
Ienlion TO bccome bankrupt.
S9'cllon lOS 60 ite' This is = now pro-
vition which max punishable offonoe
LOT crsdlters 10 pc t frauds upon their
,eilow creditors by proving false claims, or
EHhowingy receiving any money, or other
lhing OF value, as n consideration for acting
or torbearing to act il the choice of AN az.
Sgnee, or acceptance Of a composition, or the
discharge of . bankrupt
Sections %: % and LOG have been added in