The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-08-02
MANY MEN TO SEEK RELIEF.
SAVANNAH DEBTORS WILL GO INTO
VOLUNTARY BANKRUPTCY.

Probably n Dozen Arc Already Get
ting Ready 10 Take Advantage of
the New Law and Free Themselves
From Past Incumbrances-Seve
Penalty for False Statements In
tended to Defraud CreditOrs-HOw
the Law VIII Work.
Come into court all ye weary and heavy
laden and drop your load of debt This
is a paraphrasing of scripture with espec-
sal application TO the bankruptcy law
which went into effect yesterday. Any
Savannah man who is tired of buffeting
with creditors who is worn out mentally
with the constant endeavor to renew
notes and stand off claims, can find re-
lief in the United States court from now
on. His day of liberation has come and
1898 may be called the debtors year of
jubilee.
Many will probably avail themselves of
the opportunity. -Four or five men are said
to have called on Referee mcdonnell
yesterday for copies of the law and any
other information they might obtain rela-
tive to the steps they must take to be-
come voluntary bankrupts. They were
simply advised to see attorneys who could
initiate proceedings for them. Lawyers
have been studying up the provisions of
the act for some time now and as
rule are we'll qualified to advise prospec-
tive clients as to the course to pursue.
No papers have yet been filed in the
clerks office of the United States court,
In
day now.
Any man who Is in debt may become
voluntary bankrupt All he has got TO do
is to get a lawyer to draw up a petition
stating that he is insolvent and praying
for relief under the provisions of the law.
schedule of liabilities and assets must
be prepared and filed in court To con-
ceal property, make false returns, or
otherwise seek to defraud creditors is pun
ishable by imprisonment not to exceed
two Years So is the presenting of false
claims by creditors or persons alleging
themselves to be creditors. A fee of $40
is required, which goes to the referee.
: The referee also receives as compensation
! per cent. of all dividends declared out
of the assets. The referees compensation
depends entirely on the value of the prop
erty placed in the hands of the court.
Notice is given the creditors before ac-
ton IL taken by the court toward declar-
ing the petitioner a bankrupt. Full OPP
portunity Is given for the creditors to at
tack the petition and if possible show that
the assets are not all mentioned, or that
there are other reasons why the party
should not be allowed to become a bank
rupt. If these fail or If the creditors do
not protest against the petition, the petit
toner is declared a bankrupt and the
court appoints a trustee to dispose Of his
re tn IA no CT al
is selected by the creditors. His duty is
TO convert all assets into cash as speedily
as possible so that dividends may be de-
clared for the benefit of the creditors.
Funds are not allowed to accumulate in
definitely, but frequent dividends are re-
quired, all this being done under the SUI
pervision of the referee.
The bankrupt is now a free man. No
one can say he OWES a cent. The law has
wiped out his debts of the past forever.
He starts out with a clean slate. Under
the law he has been able to secure all
the benefits of the homesteads and ex-
emptions granted him by the laws of the
state, so he is not left sans household eff
fects as well as debts
From what can be learned from the
lawyers there are about a dozen men in
Savannah who are now preparing to take
advantage of the law Several of them
stated to attorneys yesterday that they
believed years Of great prosperity were
ahead for this country and If they were
freed from old obligations they believed
they could get in position to seize the
chances that the near future is likely to
offer. How many more there are who
may be revolving the matter over in their
minds no one can tell.
In one or two states local judges have
refused to allow foreclosure proceedings
10 be instituted in their courts on the
ground that the state courts no longer
have any jurisdiction over such matters.
This opinion is not entertained here. Sew
eral lawyers stated yesterday that they
saw no reason why failures could not be
adjudcated in the Superior Court the
same as before, provided, OF course that
both the debtor and the creditors We're
willing. 1t is hardly possible. though, that
any man who is about to fail, or who has
already gone to the wall, will refuse to
insist on having all the rights conferred
upon him by the national law.
No rules for these cases will be prepar-
ed by the Supreme Court of the United
States until it meets in October. 1t is not
believed that this will prevent the dis
trict courts from proceeding with cases
that may come before them.
Judge MacDonel was sworn in as referee
yesterday before Clerk H. II. King OF the
United States Court He also qualified by
giving bond in the sum Of S., 900. Mr.. Shelby
Myrick, who was appointed referee for
several counties in the western part Of the
state, was sworn in and qualified last
week.