New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-29
IMPROPER PREFERENCES


ing to establish solvency or insolvency ana r n case
solNency 81 the time the petition Is ned Is throw"
upon such debtor ,, %
the bill as finally agreed upon, no person can 90
adludsed involuntary bankrupt unless ne IS IN
solvent the time petition Is nleG. nut III GER
tain cases the burden is on the debtor 10 show
solVency and in Other cases ne Is compene" 10 az
pear and submit to rigorous EXAMINATION on this
subject This provision is Just for me deuUa io
nv M ym on r. ' h,r6D ~ showing that his
debtor IS irsovent when proven guilty OF me acts
10 which attention has been called or when ne mas
permitted a preference through legal proceedings
OF has transferred property with intent 10 prefer
II is believed hat the provisions Of the bill as
agreed upon sufficiently rigorous to protect me
she country ir'ii','' Who give credit
The provision compelling the pettionet in inyol,
untary bankruptcy proce edings 70 give n bono mas
been somewhat modified and under ne PROVISIONS
Of the bin as agreed upon the petones u t 20 o1
fere with the property OF the alleged oahKruPs
before the maj adludicauon on me peu,,o'c Give
certainly unjust 70 COMPEL creait"r 10 e Ee me
bond before proceeding IN 6ankruptey "he'e t 1no
terfered with and the proceeding canng' ne lms ,n
tuted unless the debf-r is insoNent and has com
creditor to obtain a legal preference over another
No such provision has ever been Incorporated into
is proceeding against a fraudulent debtor or one
who is insolvent and Is permitting ms properly 10
be taken by creditor 10 the exclusion OF others
CERTAIN CORPORATIONS INCLUDED
A change has been madH IN the TIL as eSErcu
upon as to who may be adjudged involuntary bank
rupts by including an unincorporated company and
corpora tons engaged principally in manufacturing
trading printing, publishing or mercantile pursuits
1t is believed that such corporations should be sub
these times the formation OF corporations for these
purposes IS very common he great Iai!ioaa ana
transportation conpane' ana na nhs 'i."i o'd -.
under any law eft 70 be dealt with ny the Itws
OF ne state creating them Il w@ud .eG No oTs
should We undertake to subject tho great railroad
ana transport tloI, Su'!u ",lo.'S ~. VIZ - 800
Of this ac;. II Is believed that they can be peter
dealt with under other laws.
The House amendment 10 the senate biiI pro-
vided that the bankrupt should attend meetings OF
creditors when notified to do by any creditor
attend DIV when he required by the Court that he SHAH
not attend at place more than one hundred and
Of business unless directed 50 to do by the court
and thai his actual e1pe ahai be paq from me
than his home This provision Is just and wise. as
the bankrupt will in most cases. be without means
The phraseology of the section providing for me
aitersd bu; TIE true meaning and effect have not
been bstantially changed. II is made clear that
a court Of bankruptcy cannot arrest the bankrupt
on debt He may be arrested for disohedience Of
It's orders for CONTEMPT and on process issued ron
State court on Judgments not affected py banN,
ruptcy proceedings when such arrest IS permitted
by the laws Of the State where issued.
The provision providing for the arrest and de-
tenton of a bankrupt when he il about 20 leave 70
avoid an exannntiGn ana theTeoS qeisst tne prG
examination must be Instituted within one month
that the bankrupt cannot be detained more than
ten days. This affords reasonable lime FOR such an
examination but will not permit persecution Of rho
bankrupt or detention for an unfeasonahlc time
The provision tina, the bankrupt shall not he i'm
CONSIDERABLE change has been made in the form
Of the section relating 70 Discharge, when
granted" The House amendment to the Senate
bin provided that the bankrupt might apply for his
discharge two months after The adjudication and
within the next four months. The bill as agreed
upon Axes these dates at one and twelve months
respectively
DISCHARGE OF THE BANKRUPT
The House amendment to tho Senate bill provided
that bankrupt should receive a discharge
from airy Of his debts IL no had within four months
OF the adjudication given preference not surren-
| dered TO the trustee obtained property by false
statements or representations made a fraudulent
transfer OF property, transferred property In con
temptation OF bankruptcy otherwise than in the
ordinary course Of his business and In contempla-
ton Of bankruptcy. These provisions are stricken
out but In the b! agreed upon the general dis
charge Of the bankrupt Will no, release him from
based any Of the acts referred TO Failing TO
proved attempted 10 prove q false claim against
the estate is not made ground for refusing dis
| charge Making a false account or valuation 81
his property is stricken out of tho Isl Of ca uses
FOR refusing discharge. hui by the bill agree
| upon such acts are made offences punishaDla by
! imprisonment. and a general provision Is inserted
that The bankrupt shall not be discharged when he
the bill In this respect the bin as agreed upon Is
as effective as the House bill 1or conviction Of he
orence Is not necessary as foundation for fefu'-
Ing the discharge. In substantial effect discharges
refused
mitted an orence against the act and when he
has fraudulenly failed 10 keep or las destroyed or
created 10y wrongs. frauds etc. cannot he granted.
The powers OF and procedure In courts are left
amendment to the Senate bill except in the matter
OF appeals, where the procedure is made more def
Of the United States are limited This ia in the in
ierest Of speedy determination Of controversies
highly proper that the settlement and distribution
OF the estates Of bankrupts shall not be delayed by
AKA nrorote tbe Creditors sborid r TT aus h
e9ts OF bankruptcy proceedings at the earliest pos
sible moment. our Circuit Courts Of Appeal IRE TO
be ne courts OF ias resori except IN extreme and
proceedings In bankruptcy is vested IN the Circuit
Courts Of Appeal and its exercise will expedite the
proceedings and promote justice.
Some changes are made IN Section .. which re-
lates 20 Offences
FALSE PRETENcEs
The obtaining OF goods by false pretenoes prior 70
being adjudged a bankrupt is an offence pun
ishebe b. imprisonment under the provisions Of
the bill finally agreed upon. The State laws VIII
properly and severely deal with such an offence
Under the provisions Of the House amendment 10
the Senate bill, falsely accounting for or failing
bankrupt was made an Offence While these words
ae oe6s Ssn to out make axe bill qs agreed
effect no substantial change is made The
false claim for PROOF is no, an offence The pro,
vision relating 70 me giving or Offering give
forbearng 10 act IN bankruptcy proceedings Is
changed In form but no IN effect. except thai tho
mere paying Of money for such a purpose Is not an
offence pun!:hable b. imprisonment Refusing 70
permit the inspection of books. etc is not an
offence unless such inspection ordered by the
Court, II an inspection is denied b. the referee or
trustee. 1; IS assumed that the refusal will la sei
or some good ground The Court can'jn a proper
case oirccl such inspection In all cases.
Section 30. while changed in form. has substcn-
tally the same effect as the House bill. An insol-
Won't person who procurcs or suffers a Judgment
against himself or who transfers any Of his prom
e-ty o. sale mortgage gilt or pledge. etc Is
deemed 10 have given a pref renee /. its enforce
ment viii enable creditor TO obtain q sreater
percentage of mis- debt than another Of the same
class,
! Payments to attorney by person in contem-
paton OF bankruptcy FOR services to be rendered
/ ed IN ho a 10 ~ourt hut