Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-07-26
BANKRUPT LAW.
Provisions Of the TORY Bill, Which
Has Passed the House.
HOW PROCESSES SHALL ISSUE
Rules Governing Referees, Trustees, Fees
and the Legal Procedure.
ACHANcE TO STUDY THE NEW MEASURE

ACHANCE TO STUDY THE NEW MEASURE
The TORY bankruptcy bill has passed the
House and will probably pass the Senate al
an early date. Appended is condensation
of the measure, which fully explains it
provisions, and which readers can study al
their leisure;
When bankruptcy petitions are filed In invoi
untary cases process shall issue as in equity
cases, returnable within is days. The Cour'
shall determine the controversy If a defense Il
made. If no defense is made, and the Judge II
absent the case shall be referred TO the
referee.
Appeals and wrIts of error may be taken II
controversies involving $500 or over, and IRON
adjudications upon petitions in accordance
with present laws, except that they must De
taken within 80 days, and shall be returnaple
I within Is days thereafter.
Controversies may be arbitrated or eompro
missed by direction of the court.
Bankrupt persons may be examined by order
of court respecting transactions and estates oi
bankrupts.
Courts of bankruptcy have ample jurisdic
tion of the bankrupt, the estate and the bank
ruptcy off GERS to secure enforcement of the
act.
State courts have jurisdiction to try contro-
versies relating to the property interests of the
estate
Ample provisions are made for jury trials,
notice in newspapers, taking OF oaths. refer
ence of cases, the passage of rules, forms and
orders by the Supreme Court for carrying the
act into effect and the computation OF time as
designed in the act or by order of court.
Referees are to be appointed by United States
Circuit Courts at time when the District
Judge is on the bench. They may be removed
for cause Their territorial jurisdiction will be
fixed by the Appellate Courts.
CREDITORS NOMINATE TRUSTEES.
Trustees will be appointed by the Courts
pursuant to nominations by creditors. The
Court will make appointment when there are
vacancies and In the event the creditors do
not nominate.
Bonds shall be given by referees and by
trustees.
Contempts and crimes by persons. bankrupts
and officers will be severely punished.
The death of a trustee or bankrupt will not
interfere with or abate proceedings.
Bankruptcy statistics shall be furnished by
officers and compiled by the Attorney General
and submitted to Congress.
The United States District Attorney shall ex-
anime the bankrupt at the meeting of the
creditors for his discharge, when ordered to do
so by the Court upon petition Of the creditors.
He will report delinquencies of referees and
trustees. and lay all cases of fraud before the
grand jury and prosecute offenses.
The referee shall make all adjudications in
uncontested cases in the absence of the Court,
cause an expeditions and economical admins
tration of the estate by the trustee, and return
the records into court.
hall radrra N1,a NaAn 81 y,
distribute it in dividends to the creditors,
under the direction of the Court, as soon as
possible.
The expense Of administering estates shall
be reported under oath. and shall not be paid
until allowed by the Court.
A $40 fee shall be paid when the petition is
filed. The Government shall receive i per-
centum on dividends paid by estates, and half
that amount on amounts paid in composition.
PAYMENT OF FEES.
Fees shall be paid to the District Attorney by
the Government in the amount as are now paid
for similar services. The trustee shall receive
per centum of the first S, 900 paid out divl-
dends, per centum on the second $1,000 and /
per centum on additional amounts. The referee
shall receive a salary of not to exceed 81. .0O0 per
annum. He shall receive q $40 fee in each
case, payable when the records are completed
and returned to court. Both amounts, to-
gether with his expenses, are to be paid by the
Government.
The number of referees shall be one for each
judicial district, and such additional number as
may be necessary to expeditiously transact the
business of the court. They shall be removed
unless either are pending before them at least
so cases undisposed of.
The qualifications of the referee shall consist
of his being an attorney, and not holder OF
any Office of profit, except notary public, mas
ter IN chancery, or commissioner; not related
by consanguinity or affinity within the third
degree or by marriage to any Judge In the dis
trict. and resident OF the district for which
appointed.
Provisions are made for the method of keep
ing the records of referees and for the filling Of
the place Of referee during his absence or
disability.
Acts of bankruptcy shall consist of {within
six months before the filing of a petition in
concealment to avoid the serv-
ice Of civil process: removal of property to
avoid its being levied upon; departure or alb
sence with intent to defraud or delay creditors;
failure for 30 days to secure the release of
property levied upon; making a conveyance
with intent to defraud or delay creditors; max.
ing a written declaration of insolvency: making
an assignment; neglecting for 30 days after
written demand to pay an open account; pro-
curing % a Judgment or - saan,erlng aa,a luagmenf. nf
fering an execution to be returned unsatiisfed;
and not resuming payment of COM
mercial paper for is days; voluntarily petition
ing to be adiudged bankrupt; making q con-
or suffering property to be taken while
insolvent for the purpose of giving prefer
ence, or dealing in options while iusolvent.
WHEN ARRESTS CAN BE MADE.
The arrest of bankrupt may be made with
in siv months after adjudication, II it appears
that he is about to move away. His property
may be seized after the filing of the petition
and before the adjudication if there is danger
that it will be lost and the creditors, upon the
giving of bond to pay damages. in the event
an adjudication is not made.
oplrr
$500 except a national bank or municipal cor
poration. may become a voluntary bankrupt
Involuntary Bankruptcy-A person who owes
s5O0 except national bank, farmer. a mu-
nicipal charitable or religious association, or
may become an involuntary bank
rupt.
Compositions may be confirmed after but not |
before the bankrupt has been examined in |
open court, or at meeting of creditors and |
after the filing of the schedule and list of cred
tors. If the offer is for so per centum or |
accepted in writing by majority in number of |
the creditors, representing majority of the |
amount of indebtedness; If it is for less than |
80 per centum, it must be signed by three |
fourths in value and amount of the creditors |
before it can be filed or considered by the |
court. The court will not confirm the compo- |
sition unless it is for the best interests of all
the creditors, and unless the bankrupt has NOT /
been guilty of any acts which would debar his |
and his embarrassment is not due to
acts, and the offer and its accent |
ance has not been improperly obtained. The |
amount to be paid or the securities to be given |
must be deposited in court, and in the event of |
the confirmation will be distributed as the |
court may direct. The confirmation of com |
promise will discharge the bankrupt from the |
excess of his Indebtedness over the amount |
paid. They will be set aside within six months |
after pelng MADE In the event fraud was prac-
ticed upon the hearing for confirmation.
DISCHARGES AND ExEMTIoNs.