Savannah morning news. [volume] (Savannah) 1868-1887, 1883-10-26
Tur LOWELL BANKRurror BILL

/ ~ YORK Board-SynOpsIs of the BIZ.
meeting of the Savannah Board OF
Trade was held a few days ago to consider
the propriety of appointing a delegation
| IN represent that body in a convention
which is to be held in Washington on
Wednesday. the 10th of January next, for
! the purpose of urging Congress at the en-
suing session to enact Just, uniform ana
| equitable bankrupt law. The meeting
was called in pursuance with request
made by the New York Board OF Trade
and Transportation, at their monthly
meeting held on the 10th inst, when the
! following preamble and resolutions were
unanimously adopted:
WHEREAS This Beard has. for the past
/ three years, increasingly labored IN seeking 70
procure the enactment hy Congress OF Just
/ uniform and equitable bankrupt law; and
Whereas. such action was caused by the
/ earnest conviction ON the part OF our lnemDefs
| that a national law governing the dstflpu-
| tiOn of insOlvent estates and preventing lrauus
and dishonesty IN commercial dealings Nds,
| and is. of supreme necessity for the protection
/ of our commerce ana the preservation oi the
Whereas, The recent large failures in vari-
/ Gus branches Of trade have again cOncluslVcly
| demonstrated the fact that, without such
uniform system of bankruptcy, the honest
| creditor " no is not connected with his FAILING
debtor 10y ties of kinshIp or close friendship, IS
| left without any protection, and Is virtually
debarred from collecting his debt, unless the
debtor chooses to be merciful unto him: ana
Whereas, such a state of affairs is barbar
! Gus. inequitable and dangerous TO our we'll
being as "A commercial people, and offers a
premium unto dishonest men 10 acquire
| wealth rapidly by INSCRIPTIONS methods
which are now tolerated and rendered posi-
| Bile by existing laws and the want OF laws
| which should exist; therefore, be 1t
Resotced, That the New l ork Board OF Irade
I T.saFn sfaffs K4lrf
| test against the present chaotic ana UNJUST
state Of our insOlvent laws, does hereby he
clare that the only projection thal the nercan-
tile community can obtain IN the premises Is
| IN the immediate enactment by Congress at
it's next session of uniform, just and national
| bankrupt law; that Zone law for one coup-
/ try Is the only true solution of the serious
1 problem of aflOrdlng an adequate remedy lof
| the glaring and intolerable evils which now
| exist in our method of administering lnSOl-
vent estates. and which law can alone prevent
! unjust determinations, obvious frauds and in
| equitable preferences he II further
R6sOfred, That this board will continue It's
| Iabors in the moOted direction until Congress
! shall afford our commercial interests the
much needed relief; and we hereby call on all
/ other boards of trade, mercantile organlza-
| tions and honest citizens throughout the coun-
| try To aid us in attaining the contamination
! Of this desirable result: be il further
! Resolred. That these resolutions be printed
\ and sent TO our members of Congress as wei
! as to all commercial organizations, with re-
/ quest that similar action be taken by the
! latter.
At the meeting of the Savannah board
! the proposition was fayOrably considered,
and the matter referred to the Board of
| Directors of that body, who Will at later
| day take definite action.
| 1t is proper To state that since the meet
| ing was held in this city a letter was re-
ceived by the superintendent of the board
! from Mr.. Darwin II. James, the Secretary
| of the New York organization, stating
! that the matter had received up
/ wards of a hundred friendly responses
! from commercial bodies.
As the subject is of general interest, a
| synopsis Of the Lowell bill,' which, it is
! proposed shall be made into law, is
! presented for the information of the read
! ers of the MORNING NEWS:
The bill was prepared by Hon. John
! Lowell, United States Circuit Judge, at
! the request of the Board of Trade of BOs-
! ton and other mercantile associations, in
! 1850, and revised by the National COnVen-
| ton of Boards of Trade and other COM
mercial organizations in 1881, and amend
| ed and reported by the Judiciary Com
mttee of the United States Senate Jan
uary, 1888. 1t is subject to such amend
| ments a 5 may be adopted by the cOnVen-
| tiOn to be held at Washington in January.
and its provisions are expressed in l06
sections. Section l gives the definition of
bankrupt, a creditor, a secured credi-
that the several District Courts of the
| United States and of the Territories, and
| the supreme Court of the District of
| Columbia, shall be constituted courts of
| bankruptcy, and defines their jurisdic
| ton, etc.
Section 81 directs when aud where
| voluntary bankrupt may file petition to
he adjudged bankrupt, and section SO
| defines what shall be considered acts of
an involuntary bankrupt.
Section - prescribes what debts shall
have priority, and be first paid in their
order in full. First, q per centum upon
| the gross assets above 5000 for the use of
the United States, as provided in section
| 20. Second, the costs and charges
| of the proceedings, including the
entry fee of 500, when not paid
| by the bankrupt, aud all costs duly
/ charged against the assets. Third,
| debts, taxes and assessments due to the
| United States which have been proved.
| Fourth, debts, taxes and assessments
made under the laws of the State where
! the proceedings are pending, and debts
| due such State, when by the laws thereof
! such debt have priority against insolvent
| debtors. Fifth, wages due any work
man. clerk or servant OF the bankrupt for
| labor performed within six months before
| the bankruptcy, not exceeding $50.
| Sixth, debts due TO any person who by
| the laws of the United States is entitled
| 10 priority. Nothing in the act shall in
| terfere with the assessment and collection
| of taxes by the authority of the United
| States or of any State.
Section "A directs that the trustee shall
file an account of his receipts and pay
ments Immediately on the expiration of
| three months from the time of his appoint
| ment, when a second meeting of creditors
| shall be called if the court thinks it eX.
| pedlent to call one, or if any trustee or
| creditor requests it, when the account
| shall be examined by the creditors and be
| passed upon by the Commissioner i'm
! Bankruptcy, and that similar proceed
| ings shall be had at the end of every six
| months until the estate is fully settled.
Section 81 provides that the bankrupt
1 may, not less than two nor more than six
| months after the adjudication, apply to
| the court for discharge from his debts
! Provided. however, that if he shall apply
for his discharge earlier than six months,
| prima-facie showing of any act that would,
! if proved. bar his discharge, or the ObIec-
4 ton of One-fOurth in amount of his cred
| itOrs, or the objection of the committee of
/ direction or the trustee, shall suspend his
| application to the end of six months after
the adjudication. A hearing on the APP
| plication shall be had by the Judge, if
convenient, and if not, by the commits
| sioner, after notice by mail to all known
creditors, and by application in one or
| more newspapers, as the court may direct.
Section 80 prescribes what shall be a
| valid objection to the bankrupt's dis
| charge, and sections So and 81 prescribe
how the hearing upon the same shall be
| conducted.
| Section 81 provides that the order grant
ing the discharge may be reviewed and
| annulled within two years after it passed,
upon the written application of any
| creditor whose debts, amounting to not
| less than $3.50, would be barred thereby,
| upon notice and hearing and satisfactory
| evidence that such order was obtained by
fraud or perjury, or that the bankrupt
failed to surrender all his exempt prop
| erty. or Influenced the action of any cred
| itor.
Section 50 prescribes when and under
| what conditions partners may be jointly
! adiudged bankrupts, and section 80 pro-
| vides that commercial corporations and
| Joint stock companies may be adiudged
| bankrupts and proceedings taken as are
| provided in the case of debtors.
| Section "a prescribes that when any
| corporation created by the laws of a State,
| whether its business is carried on within
the State or not, any order made
bv the State court for the
| ratahle distribution or payment
! of any dividend or assets of such COM
pany. shall be deemed valid if such order
be taken prior to proceedings having been
commenced against such corporation