The times. [volume] (Richmond, Va.) 1890-1903, 1898-11-29
NEW BANKRUPTCY
RULES ANNOUNCED
Manner Of Procedure as Laid Down
by the Supreme Court.
EFFECT ON EXISTING RULES.
When the Rules Arc In Conformity
With Present General Orders OF
the Rules of the Law of 1907
They Will Stand Good


States Supreme Court to-day, through
Justice Gray, announced the new pahk-
ruDtcr rules. which Il was authorized TO
frame and promulgate under the national
bankruptcy act Of July ]. 1898.
The rules have been awaited with nucn
interest. as a number OF courts declined
20 procecd with bankruptcy cases until
the supreme Court announced the new
rules Justice Cray announced that the
rules would take cffct ~d Monday Jan
uary 2 1899. and that all proceedings
heretofore taken substantially IN con-
formisy TO The act and o. he regulations
Of 1861 as far as practicable. would be
upheld. The blank forms TO accompany
the rules. he said would not be ready
for distribution for some time. owing to
proof revision, etc.
PRELIMINARY PROCEEDINGS.
The rules are preceded by an order
prescribing the proceedings In bank
ruptcy under the law previous 20 the day
on which the rules go into effect. This
orde, Is to the effect that where the pro-
ceedinxs are 'in substantial conformity
either with the provisions OF the general
orders. or else with the general orders
established by this court under the bank
supt act OF 1867, and with any general
rules or special orders Of the courts In
bankruptcy, they shall stand good. sub
feet. however 10 such further regulation
be necessary or proper TO carry into force
and effect the bankrupt act OF 1898. and
the general orders of this court.
THE DOCKET
The first rule requires the clerk OF the
court 20 keep n docket to enter cases In
their order, of all proceedings except
those entered by the referee.
rho docket is to be at all times open
IN public inspection. Rules 2. 3 and re-
late successivey 10 the filing of papers.
10 processes. 10 the conduct Of proceedings
and to the form OF petition. II is re-
Quired that all petitions and schedules
shall be plainly written and without abro-
Walton or intestation.
Under the head Of Conduct Of proceed
ings'' rule A. II Is provided that proceed
ings may be conducted by the bankrupt
in person in his own rehalf. or by n pcu-
tioning or opposing creditor but cred
itor will; only be allowed TO manage before
the court his individul interest Every
party may appear and conduct the pro-
ceedings by attorney. who shall be an at
torney or counsellor authorized 10 practice
in the circuit or district court Notices
and orders not required 20 be served on
the party personally may be served upon
his attorneys
PRECEDENCE.
Rulo & relating to petitions I'm different
districts" In case two or more petitions
shall be flied against the same individuaI
in different districts. the hrst hearing
shall be had In the district in which the
debtor has his domicile and the petition
NAV be amended by inserting an allega-
fion of an act OF bankruptcy committed
M earlier date than that first alleged, II
such earlier date is charged in either OF
the other petitions. and in case OF two OF
more petitions against the same partner
ship In different courts, each having JuIl9-
. diction over the case, the petition hrsl
filed shall be first heard. and may he
amended by the insertion of an allegation
of an earlier act Of bankruptcy than that
first If such earlier act Is charged III
either case of the other petitions; ana
in either case the proceedings upon the
other proceedings may be stayd uh,ll an
adjudication is made upon the peti'iVh
first heard and the court when makes VIZ
first adjudication over all proceedings
Therein until closed.
PRIORITY.
In the matter of priority ana IN cast
where two or more petitions are hled by
creditors against common deotor al
leging separate acts of bankruptcy on
different days, II is provided Dy rue
seven that preference shall be given 10
the petition alleging the earlier act OF
hankruptcy. In case all the petitions
name the same day for the act the cases
are 10 be consolidated.
Rule 8 provides that any member OF
a partnership. who refuses TO join IN a
petition TO have the partnership declared
bankrupt shall be entitled TO resist the
prayer Of the petition in the same man
ner as II the petition had been filed by
creditor of the partnership and to make
nli defences which any debtor proceeded
ngainst is entitled to take By the p.ovis-
Ion Of the act
INVOLUNTARY BANKRUPTCY.
Rule Elm all cases of involuntary
bankruptcy I'm which the bankrupt Is
absent or cannot be found II is made the
duty OF the petitioning creditor TO file
within FIVE days schedule giving the
names and places OF residence of all the
creditors of the bankrupt according TO
his best information. IL the debtor Is
found the petitioner may apply for an
attachment against the debtor, TO fur
nish a schedule.
Rule 10 provides for the indemnity Of
Officers OF The court for expenses prior
to the performance Of duties.
DUTIES OF REFEREES.
Rule IL allows amendments to petitions
and schedule.
The duties OF referees are prescribed
by the Twelfth rule. This rule provides
that the order referring a case Shall
name day upon which the bankrupt
shall DO subject to the orders of the
court IN all matters relating 10 MS Ddnh-
ruptcy The referee As TO be Immediately
notified of his appointment and thereafter
practically all proceedings are to
be held before tho referee. II
Is also required that the time
and place at which the referees shall act
shall be fixed by special order OF the
Judge or by the referee. Applications
for a discharge or for approval of
composition or for an injunction 10 stay
proceedings are 10 he heard and decided
BY the Judge. But he may refer the APP
plcation TO the referee TO ascertain ana
report tho facts
Rule thirteen allows either the judge
or the referee TO pass upon trustee
appointed by creditors but allows his re-
moval by tho judge only.
Rule fourteen forbids tho appointment
Of trustees by the courts.
Rule fifteen renders it allowable 10 dis
pense with trustees in cases where there
are no assets.
Rule sixteen provides for the immediate
notification of a trustee and his imine-
diate notification TO the referee OF MS
acceptance.
DUTIES or TRUSTEES.
The duties OF trustees are outlined by
rule II. one OF these requires him 10
prepare a complete inventory of all the
bankrupt properly coming into his pos
session lie is 20 make gen'f' io no
court under this proceedings within TWEEN
~ days. giving the estimated value oi