The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-06-26
HOW BANKRUPTCY WELFARE

INV DhlNhN0t iSi W I'LL t''>--
Washington, June 23.--The general
bankruptcy bill which has been adopted
by the conference committee, is divided
into seven chapters. embracing seventy
sections. The act is to so into effect I'M
inedately upon its passage. bus no petition
for voluntary bankruptcy can be filed
within one month of the passlge and 10
petition for involuntary bankruptcy can
be filed within four months. 1t is pro-
yided that proceedings begun unier state
insolvency laws prior to the passage OF
the apt shall not be affected by II. FOL
lowing is synopsis OF the provisions Of
the act
The first section Is devoted to defining
the meaning OF words and phrases con-
talneh In the act Section defines the
courts OF bankruptcy. These are the
United STATES district courts IN the several
States and Territories. They are invested
with such jurisdiction az law and In equity
az VIII enable them to exercise original
jurisdiction In bankruptcy proceedings In
vacation, in chambers and during their
prospective terms.
Section 3 defines acts OF bankruptcy.
These are defined. first, as acts by per-
son by which his property has been trans
ferred Cancelled or removed with intent
to hinder, delay or defraud his creditors:
second when he has transferred, while In
solvent any portion of his property 10
creditors with intent TO prefer them over
other creditors third. when he has SUI
fered or permitted, while insolyent. any
%cdltors to obtain n preference; itrorsh
ave days before sale or final disposition
Of any property affected by such preference
vacated or discharged such preference
fourth. when he has made general as
signmont for the benefit of creditors; fifth,
when he has admitted in writing his in
ability to pay his debts and willingness
10 be judged on that ground.
\ petition may be filed against person
who is 'nsolvent and who has permitted
an act of Bankruptcy within four months
after commission of such an act, 1t Is
complete defense in proceedings In bank
ruptcy under this section 10 prove that he
person was not nsovcnt Whenever a
person against whom q petition has been
filed takes issue with and denies the allie
cation Of insolvency, IT. is made his duty
to appear in court with his books. papers
and accounts and submit to an examina-
ton.
"a
for the purpose OF having another adjudgel
bankrupt and an application is made TO
take charge OF the alleged bankrupts
property prior to a hearing on the pc
tition, the petitioner or applicant must
file bond conditioned for the payment.
in case the petition is dismissed, to the
man charged with bankruptcy OF all costs
10
and detention of the alleged bankrupts
property. If the petition be dismissed by
the court or withdrawn by the petitioner
the accused man Is allowed all costs and
expenses oceasioned by the seizure.
Section defines who may become bank
rupt. Persons owing debts except corpora
lions, are entitled 10 the benefits Of the
act Us voluntary bankrupts. Any natural
ized person, except wage Garner or Terson
engaged chiefly in farming, any unlncor-
porated company and any corporation en-
gagged in manufacturing or mercantile pur-
suits owing Slp0n or over may be Judged
an involuntary bankrupt upon default or
an impartial trial. Private bankers may
also be adjudged involuntary 5ahtlrupts.
Section is devoted to definition OF
partnerships, Section provides that the
&C, shall not affect the allowance to bank
rupts of exemptions prescribed by state
,i,nn % No na,i,,rn Wv
Section defines the duty OF banlrupts.
The bankrupt is required to attend the
FIRST meeting of his creditors. II so directed
"S 'n' '0u'' NV '""s' eo"'p'S "''u al ID"
tn' orders OF the court; examine correct
ness OF all proofs OF claims filed against
ht, o,t,,e ,,o,,,,, o,, ,,,,,,, -,
SUI" ""p''S
as may ne oFuerou oy the court execute
10 his trustees transfers of all his prop
erty in foreign countries. inform his trus-
tees of anv attemnt nv his credi,ors .,
'o'S vi ""s "''ehP| ny MS cleu4loIs TO
eVade the law
section declares mat the death or in
sanl'y oil oahktupt shall not abate the
proeeealngs' when shaiI be conducted and
eonelu9ed IN me same manner rs though
az hha not ulSu or become insane In
case Oh ueatn the WIDOW and children are
entitled to all rights Of dover and allow