The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-08-04
REFEREE IN HARNESS.
Leon Albeit, Of Hoboken,
Sworn ia for the Hudson
County Bankruptcy
District.
HIS DUTIES UNDER THE ACT
What Must Be Done to Go
Through the I'LL Warn
ing to Debtors About
Their Property.


which took effect on August l, has been
sworn In before Clerk Cramer Of the
United States District Court, and his
bond of $500 approved and filed in the
Court at Trenton. He is ready, there
fore, to begin business at once to adju-
dicate on petitions, voluntary or involun-
tary, of gentlemen unable to square their
expenditure with their income.
In many respects the Referee in Bank
ruptcy, or Register, as he was called I'M
der the former statute, is h might
be called a perpetual Receiver of the
Court of Chancery, who collects and dis
tributes the assets, adjusts the claims
and makes his final report to the Court.
The Referee, however, is invested with
wider powers and Jurisdiction than the
Receiver. He can, by the act, administer
oaths and take testimony of Witnesses,
compel them to produce documents; but
has not the power of commitment he
is subject to review, Of course, by the
Court. If the Court, for any reason, can
not act. the Referee can take and retain
the property of the bankrupt for the bene-
fit of the creditors or trustees appointed
by them.
To those who may or may not at any
future time think of coming into closer
relation with the Referee 1t may be inter
esting to learn how that officer Will go
about his business. Stripped Of techni-
calities and cumberous legal phraseology
and put into everyday ordinary English It
IS as follows
When a petition for the bankruptcy OF
some individual is filed with the Clerk OF
the United District Court. that officer, II
it be a Hudson county matter, SENDS y
to Referee Albeit for adjudication
Should the petition be in proper form
the Referee will approve it and WITHIN
thirty days from the.time of adjudication
he will fix a time when the creditors ma
como into court with their claims. Al
that first meeting the Referee may allow
mr. disallow any of these claims
and may subject the petitioner
to an examination. in the manner OF sup
Elementary proceedings, before the credi-
tors. After this the creditors viii then
meet and appoint one, or not more man
three trustees to represent them, II the
creditors do not the Court may 90 So
These trustees, If approved by the Court,
will then collect and reduce to money the
assets, close up the state and report On
the final distribution of the amount avaii-
able pro rata to the creditors. This being
done they will present that report to the
referee, who will pass on the report ana
then he will make out what are called
..dividend sheets which will then be sent
to the court and fled.
Should everything go through sat
isfactorily and the creditors re-
ceive their dividend, the bankrupt viii
go through satisfactorily and the creditors
receive their dividend, the bankrupt will
be discharged and may begin business
over again with a clean bill of health.
but that has a string to it, which is that
a debtor can be discharged from all his
debts except such as are due for taxes lev
led by the UnitedStates, the State, county,
district or municipality in which he re-
sides: judgments and actions for frauds
or obtaining property by false pretences
or false representations, or for wlful and
malicious injuries to the person or prop
erty of another, or such as have not been
duly scheduled in time for proof and al
IoWanee. or where the debt are created
by the fraud of the bankrupt or his en-
bezzlement, Misrepresentation or defalca-
ton while acting as an officer, or in any
judiciary capacity.
A bankrupt debtor is liable to imoris-
onment. not exceeding two years, for con-
cealing, while a bankrupt, or after his
discharge as trustee for any of he prop
erty belonging to the estate in bank
ruptcy, or for making false oath or ac-
count in or in relation to any proceed
ings in bankruptcy. Any person is liable
to like punishment for presenting under
Z. - -l1.a far ynr0af noQtncf
the estate of a bankrupt, or for using
any such claim in composition personally
or by agent. proxy or attorney, or Tor
receiving any material amount OF prop
erty from a bankrupt after the filing of
the petition with intent to defeat the
bankrupt act, or for extorting or attempt
ing to extort, any money or property
from any person as a consideration for
acting or forbearing to act in bankruptcy
proceedings
The bankrupt will be refused a dis
charge for having committed any ofense
punishable by Imprisonment under the
act. or for having with fraudulent intent
to conceal his true condition might be as
certained. A discharge may be revoked
at any time within one year after 1t is
granted if it shall be made to appear that
1t was obtained through the fraud of the
bankrupt.
The new law makes it an act of bank
ruptcy for a debtor to conceal himself.
depart or remain away from his place of
business, residence or domicile, with in
tent to avoid the service of civil process
and to defeat his creditors. The aw does
not make these acts of themselves acts
of bankruptcy, but the subject is covered
in this way: Whenever an insolvent per-
son has concealed himself. departed or
remained away. and proceedings are TAX
en- against him. and any of his property
is attached or seized by q creditor, the
failure of the debtor to pay or release
the property five days before it is sold or
disposed of is declared an act of bank
ruptcy, and hence no creditor can be
injured by the acts above specified and
made acts of bankruptcy.
The new law provides that If the debt
or, while insolvent, suffers or permits any
creditor 20 obtain a preference through
legal proceedings, and shall not remove
or discharge such preference FIVE days
before a sale or a disposition of the prop
erty to satisfy such lien or preference, it
is an act of bankruptcy. A debtor who
conveys. transfers, conceals or removes
or permits to be concealed or removed
any part Of hts property with intent to
h4,lar dolav ar dafra11d his creditOrs