The free press. (Poplarville, Miss.) 1890-19??, 1898-08-04
THE BANKRUPTCY BILL.
How the Law Recently Enacted by Con-
gress Affects Different Interests.

'i"o pOCh PaoScu ny COHSIcSS uufliB
the last days of the session which has
just closed. Lawyers, merchants and
all persons interested in the collecting
Of debts, as well as debtors who are
hopelessly insolvent, are anxious to be
informed of the exact provisions of the
law in detail. 1t has been many years
since there was a bankruptcy law in
force in this country, and in conse-
quence the public generally is not in
formed on this now all-important sub
ject. We present to our readers a
classified statement of the general
features of the law which is now in
force, prepared by Mr.. William NJ.
Bethea, attorney-at-law, Birmingham,
Ala, which is as follows:
There are two officers created under
the law known as the referee and as
the trustee. The referee is appointed
by the Judge of the district court of
the United States and the trustee named
by the creditors. The law was ap-
proved July and took effect imme-
diately on that day, but no petitions
for voluntary bankruptcy could be filed
under the act until thirty days after
July l, and no petition for involuntary
bankruptcy can be filed until four
months after the first day of July, 1898.
The district courts of the United
States are, under the express terms of
the act, constituted courts of bankruptcy
and are vested with such jurisdiction
at law and in equity as will authorize
them to exercise original jurisdiction
in bankruptcy proceedings.
Any person, except corporation,
may become a voluntary bankrupt
This includes partnership. Any nat
ural person who is insolvent may be
declared an involuntary bankrupt on
proper allegations and proof except a
person engaged in the tillage Of soil
and wage-earner (who is defined in
the act to be 'an individual who works
for his wages, salary or hire at rate
not exceeding 81, 500 per year.') Any
unincorporated company and any cor
poration engaged principally in manu-
featuring, trading, printing, publishing
or mercantile pursuits owing 81, 900
may be declared an involuntary bank
rupt. Private bankers may be declared
involuntary bankrupts, but no national
bank or banks incorporated under
state laws can be declared bankrupt.
The acts of bankruptcy upon which
person may be declared an involun-
tary bankrupt are: coy Having con-
veyed, transferred, concealed, or re-
moved, or permitted to be concealed
or removed, any part of his property
with intent to hinder, delay, or de-
fraud his creditors, or any of them,
(2) having transferred while insolvent
any portion of his property to one or
more of his creditors, with the intent
to prefer such creditors over his other
creditors, or (3) suffered or permitted
while insolvent, any creditor to obtain
q preference through legal proceed
ings, and not having at least five days
before the sale or final disposition of
the property affected by such prefer
ence vacated or discharged such
preference, or (4) made a general as
signment for the benefit of his credi-
tors, or (5) admitted in writing his in
ability to pay his debts and his will
ingness to be adjudged bankrupt on
that ground, P"
1t will be observed that acts which
under the laws of Alabama would au-
thorize the filing of a creditors bill, on
the grounds of fraud, or would author
ize an attachment for having fraudu
lently disposed of your property, are
acts of bankruptcy. And further,
that certain preferences, allowed or
attempted to be allowed, which under
the laws of Alabama would be gen
eral assignment, are acts of bank
ruptcy.
During the existence of the bank
rupt statute there are not apt to be
any general assignments, as this alone
is an act of bankruptcy, and hence
will. in almost every instance, end in
the bankruptcy court. This will be
of advantage to a creditor, in that un-
der the bankrupt law the creditors
name the trustee, and will in all prob
ability not name a person favorable to
the assignor.
Under the bankruptcy law persons
are allowed the same exemption as they
are entitled to under the laws and
constitution of the state of their dom
icile. but the courts of bankruptcy
have the exclusive jurisdiction of pass
ing upon and adjudicating all ques-
tions relative to the allowance of the
exemptions to person declared
bankrupt.
The court cost of bankruptcy pro-
ceeding is as follows: Ten dollars for
the referees, S. for the trustee, $40
for the clerk, and the marshal is en-
titled to the usual fees, which depends
on the amount of work in his depart
ment. In case any assets come
into the hands of the court
the referee is entitled to l
per cent of amount paid as dividends
and commissions; trustees are allowed
such fees as the court may deem prop
er, not to exceed 3 per cent. of the
first So, 600 or less, and . per cent. of
the second $4,000 or less, and / per
.o,,t ,,f u,,oh Gums in ayeass nf S10 000