The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1898-07-15
THE new BANKRUPTCY LAW.
FEDERAL COURTS HAVE ORIGI-
NAL JURISDICTION.
Severe Penalties for Bankrupts
Who Are Found Practice
ing Fraud.

by ltS provisions, however, no petl-
ton for voluntary bankruptcy shall be
filed till after July 18th, and no petit
ton in involuntary bankruptcy shall
be filed till after October 18th.
Proceedings that were commenced
under State insolvency laws before the
passage of the Act are not affected by
it.
The United States District Court is
designated as the Court of Bankruptcy
and is given original jurisdiction in
such cases where the persons have had
their principal place Of business, resid-
ed or had their domicile in their re-
| spective territorial jurisdictions for six
months, or where they have been adj
| judged bankrupt outside of the United
States and have property within the
courts jurisdiction
| A petition may be filed against a per-
son who had committed any of the fol-
| lowing acts of bankruptcy within four
months of it's commissions:
| Conveyed, transferred, concealed, or
removed, or permitted to be concealed
or removed, any part of his property
with intent to hinder, delay, or defraud
| his creditors, or any of them; or trans
| ferred, while insolvent, any portion OF
his property to one or more OF his cred
| itors with intent to prefer such cred
| itors over his other creditors; or SUI
fered or permitted while insolvent, any
creditor to obtain a preference through
| legal proceedings, and not having at
| least five days before a sale or final
disposition of any property affected by
such preference vacated or discharged
such preference; or made a general as
| signment for the benefit of his credi-
tors; or admitted in writing his inabil-
| ity to pay his debts and his Willingness
4 to be adjudged a bankrupt on that
ground.
If party proceeded against can prove
| he had committed none of these acts
! it is a complete defense. Unless he ap-
pears with his books and accounts
when cited and submits to an exam
ination the burden Of proof shall be on
| him.
One who petitions to have another de-
clared bankrupt must give bond for
all costs and damages, counsel fees to
be fixed by the court, and paid to the
respondent in case the action fails.
| ANY person who owes a debt, except
| a corporation is entitled to the benefits
of voluntary bankruptcy. Any natural
| person. except a wage-earner or per-
| son engaged chiefly in farming or the
tillage of the soil, any unincorporated
| company and any incorporation en-
gagged principally in manufacturing,
trading, printing, publishing or mer-
| camille. pursuits, owing debts to the
amount of $1,000 or over. may be adj
judged an involuntary bankrupt. Part
nerships and private bankers, but not
national banks or banks incorporated
under State or Territorial laws, may be
adjudged involuntary bankrupts.
The Act does not affect the allowance
| to bankrupts of exceptions under the
laws Of the State where the bankrupt
| has resided for six months. A bank
rupt must attend the first meeting Of
creditors and submit to all lawful or
ders of the court. He cannot be com
PEELED to attend a meeting more than
| 10 miles from his home.
Death or insanity does not abate pro-
ceedings. Bankrupts are not liable to
| arrest except for contempts or where
he attempts to leave the State to de-
feat a proceeding, when he is required
| to give bail A fugitive bankrupt may
be extradited. Bankruptcy proceedings
| stays suits founded on claims from
which a discharge would be a release
| A bankrupt may offer terms of COM
| promise to his creditors before he has
| been examined in open court or at
meeting of his creditors, but not after,
! and application for a confirmation may
| be filed in court when it has been ac-
| cepted by majority of his creditors.
| The consideration to be paid, with costs
| and fees, must at the same time be
| deposited subject to the order Of the
court 1t may be set aside within six
months if fraud is discovered.
The bankrupt may be discharged
after one month and within twelve
months from the adjudication of his in
| solvency, unless he has been guilty Of
fraud The discharge may be revoked
any time within year, if fraud is dis
covered. A discharge releases the bank
rupt from all probable debts except
takes. due, judgments in actions for
fraud and debts not scheduled.
Petitions in involuntary bankruptcy
shall be served with a subpoena on the
defendants as in suits in equity, and
the bankrupt or any creditor may an
swer. All proceedings setting up mat
tiers of fact must be verified. In the
absence of the Judge, the Clerk will
refer the case to the referee, when issue
is joined. A person against whom
petition in involuntary bankruptcy has
been filed is entitled to a jury trial.
The United States District Courts
shall have jurisdiction of all contro-
| VERSES at law and in equity between
trustees as such and adverse claimants
concerning the property claimed or ac-
quired by the trustees.
An appeal may be taken from the
Bankruptcy Court to the Circuit Court
of Appeals from a judgment granting
or denying a discharge, from judg-
ment adjudging or refusing to adjudge
the defendant bankrupt and from
judgment allowing or rejecting debt
Of $500 or over From any decision Of
the Court Of Appeals an appeal may be
taken to the United States Supreme
Court when the amount in controversy
| exceeds $1,000 or when some Justice
of the Supreme Court shall certify that
a decision on the question involved is
essential to a uniform construction Of
the Act.
Under the direction of the Bankrupt
cy Court controversies may be sub
mitted to arbitration or a trustee may
compromise a controversy.
A person shall be punished by inpris-
onment for a period not exceeding five
years upon conviction of the offense of
having knowingly and fraudulently APP
propriated to his own use, embeZZled,
spent, or unlawfully transferred any
property, or secreted or destroyed any
document belonging to a bankrupt es-
tate which came into his charge as