Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-08-07
THE nAyKRUpTCY HITCH.

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new bankruptcy law. and possible hitch
has occurred In the workings of the mea-
| sure. The trouble is due to two clauses OF
the bill, being in conflict, and no one
with proper authority has as>umed to
straighten out the difficulty in a way
which will put all doubts at rest.
| Tuesday, the I'd day OF August. was
| the first day on which petitions in volun-
tary bankruptcy could be filed under the
act which was approved July LIST. The
bill expressly provides that mo petition
| for voluntary bankruptcy shall be filed
within one month Of the passage thereof
and no petition for involuntary bank
ruptcy shall be filed within four months
OF the passage thereof"
This provision IS all we'll and good.
and of itself there would be no cause to
complain of IL. But section 30, perhaps
added without proper forethought. says
can necessary rules. forms. and orders
as to procedure and for carrying this
act into force and effect shall be pre-
scribed, and may be amended from time
United States"
Now. unfortunately for the prompt OPP
Grafton of the law. this august tribunal
does not convene again until October,
and the necessary rules, forms. and or
ders as TO procedure" have not been pre-
pared.
In short, many persons think ope-
rations under the law will be suspended
for four months and until the court
again meets. or course. it seems alb
surd that a measure Of such in
cGlculable Importance should thus be
forced to lie dormant for so long time.
But what can be done in the premises?
Can the lawyers go ahead, use the die
tates Of their common sense, and pre-
pare forms for the time being, and if
so, will such forms ultimately be recog-
nized by the judges? That is a question
they would very much like TO have an
swered. And so would the debtor class
who are writing under the burden OF
obligations which they would fain dis
card at once.
The law, save in regard to the incon-
sistencies above pointed out, is appa-
rently clear and detailed, and the legal
profession would know just how to 90
ahead and follow its provisions But,
however irresistible the arguments Of
reason and common sense may be, It
does not always pay TO take chances,
and very few attorneys have filed petit
tions for their clients as yet.
Judge Addison Brown, of the United
States District Court. in New York. an
nounces that II, in his court, any person
offers TO the Clerk or files petition mo
action will be taken upon it until 1t be
seen whether it conforms to the require
ments to be prescribed by the Supreme
Court" In other words. he proposes to
wait on the eminent justices.
Unfortunately the hitch not only ap-
plies to procedure in Judge Browns
court, but to the whole Union. If his
construction be correct, and it is but
just to say that he is an able man. the
country must be patient and do without
bankruptcy law until the autumn. Or
more strictly speaking, the country will
have the law, but not the benefits there
from.
While we would not pose as a legal
soothsayer, we cannot but feel that ere
many days the public will have some
authoritative advice on this subject, or
that, at least, the district judges through
out the land will unite in one line
of thought. And lawyers, who have
much professional acumen, predict that
the machinery of bankruptcy legislation
will soon be running smoothly. In other
words, that there will be no sticking in
the bark on senseless technicality.
We would call attention to section 81
of the law, which, by its retroactive ope-
rations. may afford protection to all in
terested parties in case Of delay. Sub
division F of said section provides
THAT all levies. judgments, attach
ments, or other liens, obtained through
legal proceedings against person who is
insolvent, at any time within four
months prior to the fling of the petition
in bankruptcy against him, shall be
deemed null and void in case he is ad-
judged a bankrupt, and The property
affected by the levy. judgment, attach
ment, or other lien shall be deemed
wholly discharged and released from the
same, and shall pass to the trustee as a
part of the estate o: the bankrupt, I'M
less the Court shall, on due notice, order
that the right under such levy, judgment,
attachment or other lien shall be pre-
served for the benefit OF the estate; and.
thereupon, the same may pass 10 and |
shall be preserved by the trustee for the
benefit Of the estate as aforesaid, and !
the Court may order such conveyance as
shall be necessary to carry the purposes
of this section into effect: Provided, that
nothing herein contained shall have the |
effect TO destroy or impair the title OBJ |
tanned by such levy, judgment, attach |
ment, or other lien, of a bona-fide pur- |
chaser for value who shall have acquired |
the same without notice or reasonable |
cause for inquiry"
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WAR NOTES.
While a Hobson sword presentation and |