The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-11-29
New Rules Promulgated BY the Su-
preme Court.
In EFFECT JANUARY 2
MANNER OF CONDUCTING BANK
RUPTCY PROCEEDINGS.
Duties of Referees and Trustees De-
neutrality-suspicious. For Proof Of
Debts and Sale of Property-How
the Testimony Shall Be Taken
Imprisonment of Debtors.

States supreme court today through
Justice Gray, announced the new bank
ruptcy rules which it was authorized to
frame and promulgate under the ma
tional bankruptcy act of July 1, 1888.
The rules have been awaited with much
interest. as a number cf courts de-
clined to proceed with bankruptcy
cases until the supreme court an
nounced the new rules.
Justice Gray announced that the
new rules would take effect Monday
Jan. ?, 1899, and that all proceedings
heretofore taken substantially in con-
formity with the act and to the regula-
tons of 1867, as far as practicable,
would be upheld. The rules, while
promulgated at this time, he said,
would not be ready for distribution for
some time, owing to proof revision,
etc.
The rules are preceded by an order
prescribing the proceedings in bank
ruptcy under the law previous to the
day on which the rules go into effect.
This order. is to the effect that where
the proceedings are ''in substantial
conformity, either with the provisions
of these general orders or else with
the general orders established by this
court under the bankrupt act of 1867
and with any general rules or special
ORDERS OIL IIlG court III IIl6N
shall stand good, subject, however, to
such further regulation by rule or
order, Of those courts as may be neces-
sary or proper to carry into force and
effect the bankrupt act of 1898 and
the general orders of this court"
The first rule requires the clerk of
the court to keep a docket for entering
cases in their order, with a memoran-
DUN of all the proceedings except those
entered by the referee. The docket is
to be at all times open to public inspec-
ton.
Rules 2, 8 and 5 relate successfully
to the fling of papers, to processes, to
the conduct Of proceedings and to the
form OF petitions. The clerk is re-
Quired to endorse on attachment pa
pers filed the time of their receipt. All
processes are to issue under the seal of
the court 1t is required thai all petit
tons and schedules shall be plainly
written and without abbreviation or in
terlineation.
Under the head of conduct of pro-
ceedings," rule 4, it is provided that
proceedings may be conducted by the
bankrupt in person in his own behalf,
or by a petitioning or opposing creditor,
but a creditor viii only be allowed to
manage before the court his individual
interest. Every party may appear. and
conduct the proceedings by attorney,
who shall be an attorney or counselor
authorized to practice in the circuit or
district court
Notices and orders not required to be
served on the party personally may be
served upon his attorney.
TWO OR MORE PETITIONS.
Rule G, relating to petitions in diff
ferent districts:
In case two or more petitions shall
1aa 1aT frc CO.. individual in
different districts, the first hearing
ishall be had in the district in which
Bhe debtor has his domicile, and the
petition may be amended by inserting
an allegation of an act Of bankruptcy
committed at an earlier date than that
first alleged, if such earlier act is
charged in either of the other petitions;
and in case of two or more petitions
against the same partnership in diff
ferent courts, each having jurisdiction
over the case, the petition first filed
shall be first heard, and may be
amended by the insertion of an allega-
ton of an earlier act of bankruptcy
than that first, if such earlier act is
charged in either Of the other petitions
and, in either case the proceedings
upon the other petitions may be
stayed until an adjudication is made
upon the petition first heard; and the
court which makes the first adjudica-
ton of bankruptcy shall retain jurisdic-
ton over all proceedings therein until
closed.
1.-THE matter of priority, and in cases
where two or more petitions are filed
by creditors against a common debtor
alleging separate acts of bankruptcy
On different days. it is provided by
rule that preference shall be given
to the petition alleging the earliest act
of bankruptcy. In case all the petit
,1-r- fN,- 1.xaA
the cases are to be consolidated.
Rule provides that any member OF
a. partnership who refuses to poin in
a petition to have the partnership de-
clared bankrupt shall be entitled tC
resist the prayer of the petition in the
same manner as if the petition had
been filed by a creditor of the partner
ship. and to make all defenses which
any debtor proceeded against is en-
titled to take by the provisions of the
Aule e.-In all cases of involuntary
Eaifkrl-ptcy, in which the bankrupt is
absent or cannot be found. it is made
the duty of the petitioning creditors
TO file within five days, q schedule Civ
ing the names and places of residence
of all the creditors of the bankrupt
according to his best information. II
the debtor is found. the petitioner may
apply for an attachment against the
debtor to furnish a schedule.
Rule 10 provides for the indemnity OF
officers of the court for expenses prior
to the performance of duties.
Rule II allows amendments to petit
lions and schedules.
DUTIES OF REFEREES.
The duties of referees are prescribed
by the twelfth rule. This rule provides
that the order referring a case shall
name a day upon which the bankrupt
shall attend before the referees and
that from that day the bankrupt shall
be subject to the orders of the court in
all matters relating to his bankruptcy
The referee is to be Immediately noti-
fed of his appointment and thereafter
practically ali the proceedings are tc
be had by the referee. 1t is also re-
ouired that time and place the referees
shall act shall be fixed by special order
of the judge or by the referee. Appli-
cations for a discharge or for approval
of a motion or for an injunction to stay
proceedings are to be heard and decided
by the judge. But he may refer the
application to the referee to ascertain
and report the facts.
Rule 13 allows either the judge OF
the referee to pass upon a trustee ap-
pointed by creditors, but allows his
Removal by the judge only.
Rule IA forbids the appointment OF
G1ustees by the courts.
iRule Is renders it allowable to dis
pense with trustees in cases where
there are no assets.
Rule Is provides for the immediate
notification to the referee of his accept
ance.
DUTIES OF TRUSTEES.
The duties Of trustees are outlined
by rule IL. One Of these requires hin
10 a IF n