Evening journal., 1893-01-26
A CHECK TO FRAUD.
Ross's Bill to Prevent Illegal
Assignments.
AN 1NsOLRNr DEBTORS DUTY

Stocking up at His Expense and Then
Assigning to preferred" Creditors
other Legislative Matters.
STAFF Correspondence Evening Journal
DOVER, Jan Ex-senator Ross has in
hand bill to prevent fraudulent assign
ments He is very much interested in it,
as he has been a heavy loser by men
stocking up at his expense and then
assigning TO preferred creditors who
probably have not u dollar actually at
stake. The provisions Of the bill are as
follows.
Section 1. That every assignment
made by an insolvent debtor or in con
temptation of insolvency for the benefit
of his creditors shall provide, except as
herein otherwise provided, for a distribu
tion of all his real and personal estate
other than that which is by law exempt
from execution among all creditors in
proportion to their respective claims,
and however made or expressed shall
have the effect aforesaid and shall be
construed to pass all such estate
whether specified therein or not and
every assignment shall be proved or
acknowledged and certified and recorded
il the same manner rs is provided by law
in conveyances Of real estate or other
property.
Section 3 The debtor shall annex
such assignment an inventory containing
the following statement:
/. a full and true account of all the
creditors of such debtor or debtors
2. The place of residence of each
creditor, if known to such debtor or debt
oTs, and if not known, that fact to be so
stated.
3 The sum owing to each creditor
and the nature of each debt or demand,
whether arising on written security ac-
count or otherwise executed.
T. The true cause and consideration
of such indebtedness in each case and
the place where such Indebtedness arose.
.. A statement of any existing judg-
ment, mortgage, collateral or other Sc.
curity for the payment of any such debt.
g. A full and true inventory of all
such debtors estate at the date of such
assignment, both real and personal in
law or in equity, and the membranes
existing thereon, and of all vouchers an d
securities relating thereto, and the value
of such estate according to the best
knowledge of such debtor or debtors
T. An affidavit shall be made by such
debtor or debtors and annexed to aud de-
livered with such inventory of schedule,
that the same is in all respects just and
or debtors knowledge and belief. Moth
ing contained in this act shall effect the
assignor's right to retain all such of his
property as is by the constitution and
laws of this state exempt from execution,
but such list and inventory shall not be
conclusive except as against the debtor
making the same.
Section 3.-Any debtor, desiring to dc
so, may make an assignment for the ben
eft of such creditors only as viii consent
to accept their proportional share of his
estate and discharge him from their re
spective claims. and in such case the ben
ehts of an assignment shall be limited
and reinstated to the creditors consent
ing thereto, the debtor shall thereupon
be and stand discharged from all further
liability to such consenting creditors, OF
account of their respective claims, an,
when paid they shall execute and deliver
to the assignee, for the debtor. a releas
therefrOm.
Section provides that every assigue'
shall give public notice for three week
written thirty days after appointment
and shall also notify the creditors
Section provides that the creditor
consenting to such an assignment shal
n give their consent in writing within
four months after the publication o
the notice, otherwise they are deprive
Of the benefits arising therefrom; but
creditor not notified may make know
his consent at any time before the dis
tributiOn of the assets. and a receipt TO
any portion Of a claim shall be conclu
sive evidence of the assent Of the cred
tors TO the assignment.
Section 6 prescribes the manner j
which the assignee shall bond ia doubl
the amount
Section z prescribes the manner
which the creditors shall file his stat
ment aud affidavit.
Section s provides that any credit'
not consenting to the assignment ms
garnishee the assignee for any excuse
each estate remaining in his han'
after the payment Of the consentiI
creditors and the costs and expenses
executing the assignment
Section 9 conveysgto the assignee
property transferred by the assign
previous to and in contemplation of Il
assignment, with the intent or design
defeat, delay or defraud creditors or
give preference to one creditor ov
another In event Of refusal suit sh0
be entered.
Section 10 provides that no assig
ment shall be declared fraudulent oi.vu
for want of any inventory or list. b
the absence of such list Shall be Drit
facie evidence that the assignor has co
cealed some portion of the proper
belonging to his estate, and the cha
cellor may compel Tie assiguor to divul
the place of concealment and be deem
guilty of misdemeanor, and punish
by fine or imprisonment or both.
Section / 2 provides that the verif
statement Of a creditor shall be suficie
to Justify the assignee in allowing it a.
valid claim against the estate unless
ceptions are filed and the chancellor SD
decree otherwise
The other sections provide that clai
not due may be allowed at their pres,
value; that the chancellor may reno
the assip nee for cause pr0rata distrt
tions shall be made whenever o per &c
of the debts due is in the hands of
assignee; the report of the actions OF /
assignee shall be hled la the Office OF {
Register ian ghaucerv OF the county