The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-06-29
THE BANKRUPTCY BILL EX
PLANNED BY MIR. HOKE SMITH.
ATLANTA Journal.)

ATLANTA Journal.)
Mr. Hoke Smith returned to the city
on Saturday afternoon, having been pres
ent in Washington on Friday when the
| Senate passed the bankruptcy bill. He
| gave the following outline of the bill to
| a reporter of the Journal:
1.-THE bill which has just passed the
| Senate provides for voluntary and invol-
untary bankruptcy. The object of the vol
untary bankruptcy feature of the bill is
| to enable men who have become insOlvent
during the recent depression to free
themselves from their liabilities and To
have an opportunity to start over again
The prime object of the involuntary pro-
cedure is to defeat preferences given
within four months before the time
when petitions are filed.
WHAT THE BILL is.
''The bill was the result of the work
of conference committee composed of
Messrs. Hoar. Lindsay and Nelson, from
the Senate, and Messrs. Henderson and
Raw from the House. 1t went to the
Senate as the unanimous report of this
Joint committee and was passed without
opposition. | believe that it will pass
the House also without substantial OPP
position. and | have no doubt it will re-
ceive the approval of the President dur
ing the present week
THE district courts Of the United
States are given jurisdiction over bank
ruptcy proceedings with concurrent juris-
diction in the Circuit courts. The as
sets of bankrupts are to be administered
through trustees designated by the
Judges of the United States court assum-
ing jurisdiction. and the judges are also
to be aided in their administration by
referees to be appointed by the respec
tive District court judges.
VOLUNTARY BANKRUPTCY.
"A petition for voluntary bankruptcy
can be filed at any time after one month
from the approval of the President OF
the bill Any person may after the eX-
piration of one month subsequent to be-
ing adjudged a bankrupt file his applica-
ton for discharge in the court of bank
ruptcy in which the proceedings are
pending The judge is required TO hear
the application for discharge and to dis
charge the applicant unless the bank
rupt has committed an offenSe punish
able by Imprisonment under the pro-
visions of the act, or who has with
fraudulent intent concealed his true
financial condition, and in contemplation
of bankruptcy destroyed, concealed or
failed to keep books. accounts or records
from which his true condition might
be ascertained. To obtain a discharge
the consent of creditors is not required,
nor is it necessary that bankrupts should
pay any percentage to creditors.
INVOLUNTARY BANKRUPTCY. =
1.-THE bill gives the grounds upon
which Il person can be forced INTO mVol-
untary bankruptcy as follows:
".Acts of bankruptcy by a person
shall consist of his having 81 conveyed,
transferred. concealed or removed or per
mitted to be concealed or removed any
part of his property with intent to him
der. delay or defraud his creditors, or
any Of them; or transferred, while insdl-
vent, any portion of his property to one
or more Of his creditors with intent to
prefer such creditors over his other cred
TORS; or suffered or permitted. white in
solvent. any creditor TO obtain a prefer
ence through legal proceedings, and not
having at least five days before a sale
or final disposition of any property af-
fected by such preference or discharged
signment for the benefit of his creditors;
or admitted in writing his inability to
nav his debts and his willingness to be
adjudged a bankrupt on that ground
PETITIONS AGAINST INSOLV-
ENTS.
ga petition may be filed against a
person who is insolvent and who has
committed an act of bankruptcy within
four months after the commission of
such act. Such time shall not expire I'M
| iii four months after the date of the
recording or registering of the transfer
or assignment when the act consists in
having made transfer of any of his
property with intent to hinder, delay
or defraud his creditors for the purpose
of giving a preference as hereinbefOre
provided or general assignment for the
benefit of his creditors, if by law such
recording or registering is required or
| permitted, or if it is not, from the date
when the beneficiary takes notorious, ex-
| elusive or continuous possession of the
property unless the petitioning creditors
have received actual notice of such
transfer or assignment
WIPES OUT ALL PREFERENCES.
1.-THE important feature of the involun-
| tary bankruptcy procedure is that it
| wipes out all preferences given within
| four months prior to the procedure for
| an adjudication of involuntary bankrupt
| cy.
| 1.-THE bill also declares that n person
| shall be deemed insolvent within the
| provisions of the act whenever the az.
! Il. o.