The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-11-29
THEY ARE ANNOUNCED
AND WILL TAKE EFFECT ON
MONDAY, JANUARY ..
COURTS AWAITED THEM WITH INTEREST
Proceedings Heretofore Taken Substantially in
Conformity to Act'and TO Regulations
Of 1867 as far as Practicable
viii be Upheld.

Washington, Nov. 2S.-The United
States Supreme court to-day 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 1st, 1898.
The rules have been awaited with much
interest, as a number of courts declined
to proceed with bankruptcy cases until
the Supreme court announced the new
rules. Justice Gray announced that the
new rules would take effect on Monday,
January 2nd, 1890, and that all proceed
ings heretofore taken substantially in
conformity to the act and to the regula-
tions 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 lin substantial con
formity either with the provisions of
these general orders, or else with the gen
eral orders established by this court
under the bankrupt act of 1867, and
with any general rules or special orders
of the courts in bankruptcy they shall
stand good, subject, however, to such
further regulation by rule or order of
those courts as may be necessary or
proper to carry into force and effect the
bankrupt act of 1893, 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 memorandum
of all proceedings except those entered
by the referee
The docket is to be at all times open
to public inspection.
Rules ,, 3 and relate successively
to the filing of papers, to processes, 10
the conduct of proceedings and to the
form of petitions. 1t lis required that
all petitions and schedules shall be plain
ly written and without abbreyiation or
interlineation.
Under the head of Conduct of Pro
ceedings,' rule i, it is provided that
proceedings may be conducted by the
bankrupt in person in his own behalf,
or by petitioning or opposing creditors;
but Il creditor will 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 counsellor
authorized to practice in the circuit or
district court. Notices and orders not
required to be served on the party per-
sonally may be served upon hs attor
ney."
Rule relating to petitions in Diff
ferent Districts"
In case two or more petitions shall be
filed against the same individual, in
different districts, the first hearing shall
be had in the district in which the 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 date is charged in either OF
the other petitions; and in case of two
or more petitions against the same
partnership in different courts, each hav-
ing jurisdiction over the case the petit
tion first filed shall be first heard and
may be amended by the insertion of an
allegation of an earlier act of bank
ruptcy than that first, if such earlier act
is charged in either of the other petit
tons; and, in either case, the proceed
ings upon the other petitions may be
stayed until an adjudication is made
upon the petition first heard; and the
court which makes the first adjudication
of bankruptcy shall retain jurisdiction
over all proceedings therein until closed"
In the matter of priority and in cases
where two or more petitions are filed by
creditors against common debtor al
leging 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 petitions
name the same day for the act the cases
are to be consolidated.
Rule s provides that any member of
a partnership who refuses to join in a
petition to have the partnership de-
clared bankrupt shall be entitled to re-
sist the prayer of the petition in the
same manner as il the petition had been
filed by creditor of the partnership,
and to make all differences which any
debtor proceeded against is entitled TO
take by the provision of the act.
Rule 8. In all cases of involuntary
bankruptcy in which the bankrupt is alb
duty of the petitioning creditor to file,
Continued on Second Page.)