New-York tribune., 1898-11-29

PROMULGATED BY THE UNITED STATES
SUPREME COURT.

bankruptcy rules which II was authorized TO
/ frame and promulgate under the National Bank
/ ruptcy act OF July l. 1898. This action has been
awaited with much interest, as a number OF courts
declined 10 proceed with bankruptcy cases until the
! Supreme Court announced the new rules Justice
| Gray announced that the rules would take
! effect Monday January . 1893 and that all pro-
/ ceedlngs heretofore taken substantially In con-
! formity TO the act and the regulations OF 1861 so
/ far as practicable would be upheld. The blank
/ forms to accompany the rules he said. would not
/ he ready for distribution for some time, owing TO
| proof revision, etc.
The rules are preceded by order prescribing
| the proceedings in bankruptcy under the law pre-
! vlous the day which the rules go into erect
This order IL the effect that where the proceeu
ings are in substantial conformity either with the
provisions Of these general orders or else with the
| general orders established by this Court under the
BANKRUPT act OF 1861 and with any general rules or
special orders OF the courts In bankruptcy lheS
shall stand good subject, however to such further
regulation by rule or order Of those courts as may
be necessary proper TO carry Into force ana
/ effect the Bankrupt act OF 1885 and the general
orders OF this Court"
The first rule requires the clerk Of the court 70
keen docka, for entering cases in their order with
/ a memorandum OF all proceedings except those en-
tered by the referee. The docket is 70 De at All
times open 70 public inspection.
! Rules Nos Q 3 and : relats to the fling OF papers,
TO processes to the conduct OF proceedings and 10
the framing of petitions. The clerk Is required 10
indorse on each paper filed the time OF It's receipt
| All processes are 70 issue under the seal Of the
court It is required that all petitions and sched-
ules shall be plainly written and without aobreVia-
ton or interlineation Under the head of conduct
! OF proceedings" Rule No. 4. Il is provided that
proceedings may be conducted by the bankrupt In
person in his own behalf by petitoning or op-
posing creditor: but creditor will only be allowed
to manage before the court his individual Interest
! Every party may appear and conduct the proceed
inGs by attorney. who shall be an attorney or coun-
selor authorized practise In the Circuit or Dis
! trlct Court. Notices and orders not required 70
be served the party personally may be served
| upon his attorney"
Rule No. g. relating to petitions In diferent dis-
tricts. is as follows:
In case two or moro petitions shall he filed against
The sme individual In dInsTent ls,rr,s ubicn the
debtor has his domicile. and the petition may De
! hankrlptcv committed m an earlier date than that
first alleged n such earlier act 10 charged IN elihe
OF the other petitions. and in case o. Two or more
petitions against the same partnership in differen'
courts each having Jurisdiction over the cas-" tne
position first h.ed shall De first heard ana may De
| amer led by the Insertion Of an alegailQn of an
earlier act Of bankruptcy than the hrst a,eSrti -
petitions ami in either the proceedings upon
the other petitions may he STAYED until an adjuGica-
tion IS made upon the petlt hrsi heard eng w
court which makes the first Adjudication of oank-
riptry shall retain jurisdiction over all proceedings
| therein until the same shall be closed
! In the matter ot priority and In cases where two
or more petitions cre filed by creditors against a
common debtor alleging separate acts Of bank
rlptcy on different days II Is provided by Rule NO.
7 that preference shall he given 20 the petition
/ alleging the earliest act % bankruptcy. In case
all the petitions name the day for the act. the
! cases are 10 10 consolidated
Rule 30 provides that any member O., a part
nership who refuses join I'm petition - have the
partnership declared bankrupt shall he entitled 10
resist the prayer of the petition in the man
hsI haaY 81
] of the partnership and 70 make M defences viii b
any debtor proceeded against Is entitled To- make by
/ the provisions of the act
/ by Rule 80 . in all cases ~ involuntary bank
ruptcy in which the bankrupt Is absent or cannot
/ be found II Is made the duty os the pettioninE
creditor 70 file within five days schedule giving
the names and places Of residence OF all the cred
itors y the bankrupt according 20 his best informa-
! ton II the debtor Is found the petitioner may
apply FOR an attachment against the debt TO furnish
a schedule
Rule No 10 provides for the indemnity o, officers
OF the court for expenses prior 10 the performance
| OF duties.
Rule 40. II allows amendments 70 petitions and
DUTIES OF REFEREES.
The duties os referees are prescribed by Rule No.
r. This rule provides that the order referring a
| case shall name day on which the bankrupt shall
/ attend before the referee and that from that day
the bankrupt shall be subject 70 the orders Of the
/ court in all matters relating TO his bankruptcy.
! The referee il 10 be Immediately informed OF his
! aupoin- mont and thereafter practically all the pro-
! ccedlngs are to be had before the referee It is
/ also required that the time and place the referees
shall at shall ne fixed by special order ~ the Judge
/ or by the referee. Applications for discharge or
/ for approval Of composition or for an injunc: on
| II stay proceedings to be heard and decided by
the Judge But he may refer the application 70 the
/ referee % ascertain and report the facts
I vffa " a. . her or ref
70 pass IN a trustee appointed by creditors. but
ALLOW. his renovai hy the judge only.
Rule 40. a forbds the appointment Of trustees
! by the courts.
Rule NJ u renders It allowable dispense with
trustees in cases where there no assets.
Rule 30 l6 provides FOR the Immediate notifca-
ton Of a trustee and his immediate notification 20
the refer ~ his acceptance.
The duties Of trustees are outlined by Rule No t.
One Of these requires him to- prepare a complete in
ventory Of ali 70. 5ankrupt's property coming into
his possession. He Is 20 max report % the court
under this proceeds ng within twenty days giving
the oe-imatei value of each article. To this
schedule creditors are allowed 10 take exceptions
within twenty days. In such c0ses the referee Is
authorized 20 reuuro the ex xceptons To be argued
and is required the request of either party 10
certify tuein to the court of final determination.
Failure of ,ha trustees 10 file a statement renders
him liable % removal from office All the accounts
Of trustees ar referred to the referee for audit
The regulations for the sale of property by Rule
80 Is provide that all sales elal be by public auc-
tlon unless otherwise ordered by the court and ON
app iction T. the cour:. AMI for gool cause shown
the trustee may be authorized 10 sell any specified
portion Of the harkrupts estate At private sale on
petition by bankrupt. creditor. receiver or trus-
tee setting forth that a part the whole of an
estate IS pegslable and that there will bee loss II
the same is not sold Immediately. the court may
order the SANE be- sold with without notice TO
the creditors. and the proceeds To be- deposited
court.
Rule No 70 relates 70 the accounts OF MAJ halls
and Rule 40. % TO the proofs Of papers filed SUBJ
sequcnt 10 reference.