The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-11-29
RULING OF SUPREME
COURT IN BANKRUPTCY


sent or cannot he found, il is made the
names and plices Of residence of all
the creditors OF the bankrupt according
70 his best information. If 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 pct-
tions and schedules.
The duties of referees are prescribed
nv the 10Th rule This rule provides
that the order referring a case shall
name n day upon which the bankrupt
| shall be subject to the orders of the
court in all matter relating to his bank
ruptcy. The referee is TO be Immediately
notified of his appointment and thereaf-
Ter practically all the proceedings are to
he had before the referee. 1t is also
reou;~~ that the time and place ut which
the referee shall act shall be fixed by
special order of the judge or the referee.
| Applications for discharge or for APP
! prevail of n composition. or for an m
| junction TO stay proceedings are to he
heard and decided by the judge. But he
may refer the application to the referee
to ascertain and report the facts.
| Rule ID allows either the judge or
the referee To pass upon Il trustee APP
pointed by creditors hut allows his re-
moval by the judge only.
| Rule II forbids the appointment of
| trustees by the courts.
Rule II renders it allowable to dis
pcnse with trustees in eases where there
/ are no assets.
Rule rs provides for the immediate no
| LITIGATION of n trustee and his immediate
| notification to the referee of his accept
| ance.
The duties of trustees are outlined by
| rule IL One of these requires him TO
prepare a complete inventory of all the
bankrupt property coming into his pos
| session He is to make report 10 the
| court under his proceeding within 20
| DAYS giving the estimated value of each
article
| TO this schedule creditors are allowed
| to take exceptions within 20 days. In
such cases the referee is authorized to
require the exceptions to be argued and
is required ut the request of either party.
| TO certify them to the court for final
| determination. Failure of the trustee to
! file IA statement renders him liable to re-
moval from office All of the accounts
of trustees are referred TO the referee for
! audit.
| The regulations for the sale of pro-
perty made by rule Is provides that
| all sales shall be by public auction UNI
1 less otherwise ordered by the court. Upon
| application to thes court. and for good
| cause shown the trustee may he au-
| thorized to sell any specified portion of
| the bankrupt's estate at private sale.
| Upon petition by bankrupt, creditor.
| receiver or trustee, setting forth that Il
/ part or the whole of an estate is per-
| ishable, and that there will be less if the
same is not sold Immediately. the court
may order the same 10 be sold, with or
without notice to the creditors. and the
proceeds to be deposited in court.
Rule 10 relates to the accounts of
marshals and rule 20 to the proofs of pa
pers filed subsequent to reference.
Rule p relates to the proof of debts.
The first provision under this heading is
as follows:
Dispositions to prove claims against
bankrupt's estate shall he correctly en-
| titled in the court and in the cause
| When made to prove Il debt due to
partnership, it must appear on oath that
! the deponent is q member of the part
nership: when made by an agent. the
i reason the deposition is not made by the
] claimant in person must be stated, and
| when made TO prove a debt due to a
corporation, the deposition shall be made
| by the treasurer, or if the corporation
| has no treasurer. by the officer whose
duties most nearly correspond to those
| of treasurer. Dispositions to prove debts
| existing in open account shall state when
the debt became or will become due: and
| if it consists of items maturing mt differ
ent dates the average due date shall be
| stated in default of which il shall not
he necessary to compute interest upon
| it. All such dispositions shall contain an
| Terment that no note has been received
fer such account nor any judgment rem
| dered thereon. Proofs of debt received
| by any trustee shall be delivered to the
| referee ITO whom the cause is referred y
Other provisions require that notice of
proceedings shall be mailed to all credi-
tors requesting them that the claims of
persons contingently liable for the bank
rupt may be proved in the name of the
| creditor when known by the party con-
| tingently liable; that referees may allow
| the re-eXamination of claims against a
bankrupts eastate when desired by the
trustee or creditor. and that claims
which have been assigned before proof
shall be supported by a deposition of the
owner at the time of the commencement
OF proceedings. setting forth the true con
slderation Of the debt and that it is en-
firely unsecured, or if secured. the securi-
ty as is required in proving claims.
Rule ~ relates to the taking of tcs-
timony is as follow,
The examination of witnesses before
the reference may be .conductd by the
party III person or by his counsel or at
; tcrney, and the witnesses shall be subject
to examination and cross examination. A
deposition taken upon an examination
before Il referee shall he take down in
writing by him, or under his direction.
in the form of "A narrative, unless he de-
! termines that the examination ques
ton and answer. Wnsa com
pleted it shall be real over TO
the witness and signed by him in the
presence of the referee. The referee shall
note upon the deposition any question
OBJECTED to, with his decision thereon: and
the court shall have power to deal with
the costs of incompetence. immaterial or
irrelevant dispositions or parts of them,
1 L.