New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-10-30
THE BANKRUPTCY LAW.
FRANCIS KEY PENDLETON GIVES A
SYNOPSIS OF THE GENERAL PLAN.

SYNOPSIS OF THE GENERAL PLAN
OBJECTS OF THE LAW AND THE METHODS BY
WHICH 1T SEEKS TO DO JUSTICE TO
DEBTORS AND CREDITORS.
Many questions have been asked as to the opera
ton OF the new Bankruptcy act. and to those
people who are interested in the subject the fol-
lowing summary, given by +. X. Pendeton. VIII De
valuable.
MIR. Pendleton sad
THE new Bankruptcy law provides complete
system for the administration OF the anairs OF
bankrupts and the distribution Of their properly
among their creditors. uniform throughout the
United States and administered by the United
States courts in place OF the different systems now
in existence in the various States administered by
the State courts.
THE basic feature of bankruptcy proceedings
Il that a bankrupt dc btor may turn over all his
property to the court to be administered Tor the
benefit OF his creditors and then get compete
discharge from his debts and 1t was the aim or
the present Bankruptcy law to provide such
system and simplify the proceedings as much as
possible
by this act n bankrupt may Of his own mo-
ton offer to surrender his property TO the ad-
ministration OF the United States court and ask
for his discharge which is termed voluntary
bankruptcy, or creditors may apply TO the court
20 compel n bankrupt to turn over his property
to be administered under the act for the beneht
OF the creditors. and such a case Is called In
voluntary bankruptcy. In the latter case, as well
as the former. the bankrupt who has turned over
all his property and conformed TO the provisions
OF the act is entitled to judsmel 1t Of court dis
charging him from any future liability to his
creditors.
Extended powers are given by this act FOR the
taking possession and the administration Of the
assets. among others to ALLOW and disallow all
claims against bankrupt estates. appoint receiy-
and take the necessary measures for the
preservation and charge Of the property Of
ba 1krupt; TO arralgn. try and pulisn bankrupts'
officers and other persons and the agents. officers,
me nbcrs Of the Board OF directors or trustees or
other similar bodies OF corporations for violation
of the act: to authorize the business of the bank
rupt be conducted for limited periods; to cause
the assets to be collected and reduced to money
and distributed, and substantially determine all
controversies in relation thereto; to enforce obedl-
ence to lawful orders by fine or imprisonment ana
to extradito bankrupts from district TO an
other.
| THE proceeding inaugurated by the fling
of a petition by the bankrupt on his own behalf
or by creditors against the bankrupt, and the
| adjudication in bankruptcy having been made
that is 1t having been decided judicially that the
debtor is a bankrupt within the meaning OF the
act-the Court proceeds to take charge OF his
property, and administer the same for the benent
of the creditors and determine all questions which
may arise In regard to the rights of the bankrupt
or the creditors, either as against the bankrupt
or as between themselves in accordance with the
| above-prescribcd powers
"For this purpose trustee is appointed. either
! selected by the creditors at a meeting called for
that purpose o.. in case they fail to select a
trustee one is appointed by the Court. The DUTY
! of the trustee Is to collect the properly reai nc
on the same in such manner as may be Tor inc
best interests of all concerned and ultimately dis
tribute the same among the creditors IN suGn pro
portions they may be adjudicated to be en-
titled thereto. ., - .s ,,o, r. 70.
,,on to- ths pT"perty or the rights Of the
ous parties must be decided in the bankTuptcy,
such questions will arise in the course OF each
case and for the purpose OF determining ilr suG ni
| pointed who are charged with the duty OF hearing
! the allegations and testimony OF all parties ana
case ~ it comes up, s assigned TO some referee;
whose duty 1t is to adjudcate and pass upon al; al
such questions ariaing therein In the trst IN
the right being reserved to any parties "a hes
pPes s ng SeG co%r OF the 10
'"rhe duties of the referee are substantially S od
position of a Judge Of primary resort, subject
appeal to the court and is REQUIRED 10 'a f1r
Judges of the United States courts. BY Section
s. OF the act the referee is Invested Win Jursd nc
clerks. make adjudcations or dismiss the petition;
exercise the powers vested in courts OF banK-
examination OF witnesses and for rsGurnE t the
production of documents in proceedings osfor re
him. except the power OF commitment ana, .0r IN
the absence the Judge, to exercise all his powers
for taking possession and releasing the proper.!
duties of the courts OF bankruptcy as they may
| prescribe by rules and orders. excepting ony
questions arising on applications OF oankrup'S ior
| IAN questions in regard to the property or as
sets or rights OF the creditors and persons In,
! terested come before the referee for hearing ana
| determination. subject TO the right OF appeal as
| above stated After the rights OF all parties
! have been ascertained and determined; ana inc
property has been realized upon. IL Is distributor
among the creditors. , 49,, ,,
provision is made in the act for allowing bank
rupts to compromise settle with ther creditors
by proceeding known as tonpTSauTm ,a tority Of
his creditors agree upon basis OF settlement.
| the same II approved by the Court SHAH become
| Question as to the approval OF composition" ana
granting discharges to bankrupt from MS usOas
Are specifically reserved by the act to the judges
virtue Of its general powers, may REFER such mat
tiers TO the referee take testimony ana report 10
| the court his opinion thereon A., 49,
| THE aim OF the act has been to make the eX-
! pcusc Of the proceedings depend largely upon the
| amount of the property involved, ana me coi
pensation OF the referees is fixed substantially az
! ner cent on the amount distributed to the credi-
| tors I'm ordinary cases. where the assets are as
| trbuted by the court. and onc-half OF per CEN
! charge Of the actual management OF the BANK.
| rupt's property receive as compensation such
| commissions on amounts paid out by them as diV-
bends as tho court may allow, not to exceed now
| ever per cent on the first 5000, per cent on
! the second 5000. and per cent on all sums III
| excess OF $1,000 -
| giving notice to all creditors and other persons
| Interested In the estate of the tendency OF the
proceedings the payment and declaration 0f 6y
| whereby all parties Interested may BE- heard on
| all subjects arising In the course OF the pro-
| ceedings."
PARIS EXPOSITION TOURS.
/ 4. Hoo, ITO