The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-04-14
TWO BANKRUPTCY BILLS.
Measures Proposed by the senate and
House judiciary Committees.

WASHINGTON, April 13. - The George
bill to establish a uniform system of bank
ruptcy was reported to the Senate to-day
from the judiciary committee. The most i'm
portant amendment made by the committee
was that providing that where any debtor
who, being a banker, broker, merchant, trad
er or manufacturer, owing $500 makes an as
signment or conveyance of his property. or
gives any lien or incumbrance thereon con-
trived or devised with the actual intent on
his part to defraud his creditors, such act
shall be deemed bankruptcy The measure
provides for voluntary bankruptcy. At the
same time Mr.. Mitchell Of Oregon, SUBJ
mltted the views Of the minority of the COM
on by the House committee on the judiciary,
with some notifications. The latter provides
The House bankruptcy bill is the result
CT the lab0rs OF the committee on judiciary
for for three h,1, This sommttee took
mont, for the basis OF its work. his bill be-
ing based upon the Oates bill of the last
Congress. which was a mobilization of the
Torrey bill. Both voluntary and involuntary
bankruptcy are provided for In the bill. the
involuntary features being carefully limited.
All persons VINO owe debts are entitled TO
the benefits Of the act as voluntary bank
cause the laws of the State creating them
provide for winding up their affairs. Any
person owing debts to the amount Of 81 i.0oo
or over,. If guilty OF an act of bankruptcy
may be adjudged an involuntary bankrupt,
except a national bank. a person engaged
chiefly I'm farming or the tillage of the soil
and a wage Garner, A wage eaner is IAN
individual who works for salary, wages or
hire at a rate of compensation not exceed
ing $500 per year." National banks are
closed and their affairs administered under
the provisions of the national banking laws.
Partnership, both before and after dissolu-
ton and before a settlement of its affairs
may be adjudged bankrupts and In such cases
the partnership debts must first be paid. All
bankrupts are allowed the exemptions pre-
scribed by the laws OF the State In which
the bankrupt resides. The bill carefully pre-
scribes the duties of bankrupts. provides for
their protection and detention. allows set
Elements with creditors and provides for dis
charges except when frauds have been prac-
ticed. The bankrupt cannot be discharged
from taxes, judgments for frauds and willful
or malicious injuries to the person or prop
created by fraud, embezzlement or defalca-
ton while acting as an officer or in a hdu-
ciary capacity. The bill creates two new
officers. trustee and referee. Fees and COM
pensation of these officers are limited and
the expense of administering bankrupt es-
tate Ii Is stated. will be small All causes
of involuntary bankruptcy, except two in
volve fraudulent intent, purpose and act.
Suspending payment of commercial paper
for thirty days while fnsolvent, making as
signment for the benefit of creditors and a.
ing written statement admitting inabilityto
pay debts. also constitute accounts o1 bank
ruptcy. Acts OF bankruptcy must have been
committed within four months. but I'm some
cases as in case of concealment or running
away TO avoid the service OF civil process
the transfer Of property TO defeat creditors.
etc, a return forty-eight hours before petit
ton filed or a regaining or possession and
ownership of the property transferred ten
days before the commencement of proceed
ings. relieves the offender from the opera
tion OF the law.