The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-11-29
AEN RULES N BANKRUPTCY.
SUPREME COURT COMPLETES THE
TASK IMPOSED on n.
VIII he Ready for Dtstyfbution by
January 2, IT which Time They
Take E6ect-All Proceeeings Al

WASHINGTON. Nov. x-The United
states supreme court. through Mr.. Justice
Gray. has announced that the new bank
ruptcy rules which IL was authorized TO
frame and promuigaae under the national
bankruptcy act OF July ], 1858. are COM
piled. Justice Gray announced that the
rules would take effect on January ?, 1888,
all proceedings heretofore taken In con-
formity with the act and 10 the regulations
OF 1897, az far as practicable, would be up
held.
The rules. while promulgated at this
time, he said. would not be ready for dis
trfbution 10. SOME time. owing 10 proof
revision esc
The rules are preceded by an order pre-
scrfbing the proceedings In bankruptcy
under the law previous TO the day on which
the rules so into effect. This order Is TO
the effect that where the proceedings are
II substantial conformity either with the
provisions Of these general orders. or else
with The general orders established by this
court under the bankruptcy act Of 1851. and
with any general rules or special orders
OF the court in bankruptcy they shall stand
good. subject. however, to such further
regulations by rule or order. OF those courts
as may be necessary or proper TO carry in
TO force and effect the bankrupt act Of 1855
and the general orders Of the court
The first rule requires the clerk OF the
court TO keep docke. for entering cases
In their ortier. with a memorandum OF all
the proceedings except those entered by
the referee. The docke, is to be at all
times open to public inspection.
Rules 2, 3 and relate successfully to the
ming OF papers. TO processes. to the con-
duct OF proceedings and TO the framing Of
petitions. The clerk Is required TO in
dhrse on attachment papers fleI the time
or their receipt, All processes are TO Issue
under the seal Of the court. II IL required
that all petitions and schedules shall be
plainly written and without abbreyiation
or interlneation.
Under the head Of conduct OF proceed
ings." Rule 4. IL is provided that proceed
inEs may be conducted by the bankrupt In
person In his own behalf or by a petition
Ing or opposing creditor. but a creditor
VIII only be allowed 10 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 cir
cult or district court"
Notices and orders not required 10 be
served on the party personally NAV be
served upon his attorney.
In the matter OF priority and in cases
wfere two or more petitions are filed
hy creditors aga ST common debtor al
iegana separate acts of bankruptcy on diff
fcrent days, 1t is provided by rule that
preference shall be given TO the petition
alleging the earliest act Of bankruptcy.
In case al! the petitions name the same
DAY tor the act, the cases are TO be con-
soidated
Ruie provides that any member Of n
partnership who refuses to Join in n peti-
ton to have the partnership declared
bankrupt shah be entitled to resist the
prayer OF the petition in the same manner
as IL the petition had been fled by creal-
tor OF the partnership, and to make all
defenses which any debtor proceeded
against Is entitled 10 take by the provi-
s.ons of tho act.
Rule O. In all cases of voluntary bank
ruptcy. In which the bankrupt is absent or
cannot be found, II Is made the duty of
the pettioning creditor to file. within five
days. schedule giving the names and
places OF residence of all the creditors of
the bankrupt. according TO his best in
formation. II the debtor fs found tho
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 petit;ons
and schedules. The duties az referees are
prescribed by the twelfth rule This rule
provides that the order referring a case
shan name day upon which the bank
rupt shall attend before the referee. ana
that from that day the bankrupt shall
be subject TO the orders Of the court IN
all matters relating TO his bankruptcv
The referee is 10 be immediately notified
Of his appointment. and thereafter practl
cally all the proceedings 10 be had by the
referee IL Is also required that the
time and place at which the referee
snail act shall be fixed by special order
ef the Judge or referee. Applications for
discharge or for approval OF a COMPOST
ton or for an injunction ~ stay proceed
tngs are 81 be heard and decided bv tho
judge. But he may refer the application
tc he referee 10 ascertain and report the
facts
Rule y allows either the Judge or fhe
referee 10 pass upon a trustee aunointed
by the creditors bat allows his removal
by the Judge Only.
Kale II forh.ds the appointment Of
trustees by the courts
Rule Il renders II allowable To dispense
with trustees In cases where there are no
assets.
Raie Is provides FOR the Immediate no
ilftcatlon by the referee 81 his acceptance.
Tie duties OF trustees are outlined hv
rule Il cns Of these requires him 20
prepare a complete inventory OF all the
haHkrupts property coming into his pos-
session. He is Ia make report 70 the
court under this proceeding within twenty
DAYS giving the estimated value ~ each
article To this schedule creditors are
allowed 70 take exceptions within twenty
days, In such cases the referee is asi-
iAort$ed 10 require the exceptions 10 he
argued, and Is required a, tho request %
either party. - certify them TO n. ccurt
:or tnai determination Failure cf rhe
trustee 50 tle statement renders him
liable n removal from ofnee. All ~ ~,
accounts - The trustees ara TO he referred
10 fAc referee for audlt.
TIE regulations to- the sale 81 property
rnsde by rule Is provide THAI all sales shall
Re n1ada hy pUhlic auction. unless other
wise ordered by tire ceurt. Cron his an
Isica'}on - tha court. and for good cause
shown, tire trustee may Ne authorized 20
sell anv specific portion = the harkruEi's
estate NJ private sales. Upon petition isv
a bankrupt creditor, receiver or trustee
settlug forth TIA; q qArt ar whole 81 a,
estate Is perishahle ard that thera MI
ha less r the same IS not ssia immediately
the c9urt nsRY aTssr fha same 70 he aclz
VITA ~ Without nnt8ta % the CREDITOR,
ant ire proceeds "a ea deposited I'm court
ftsae x relates - the n~oAg - .tebfs
TIE FIRST Tsg0 ygEsN~ xss7-apr shsz @aa yz..,-- :;