The record-union., 1898-11-29
Rules Framed by the United States
Supreme Court,
Which Are to Take Effect on the Second
Day Of January, 1899.
All Proceedings, However. Taken
Subsequently in Conformity
With the Act, 1t is Announced
by the Court, Will, as Far as
Practicable, BE Upheld.

| / by the Court, Will, as Far as
Practicable, Be Upheld.
| WASHINGTON, Nov. 2S.-The Unit
| eu states Supreme Court to-day,
through Justice Gray, announced the
new bankruptcy rules which 1t was au-
thorized to frame and promulgate under
the national bankruptcy Act of July l..
1898. The rules have been awaited
with much interest, as a number Of
courts declined to proceed with bank
ruptcy cases until the Supreme Court
| announced the new rules
| Justice Gray announced that tbs new
rules would take effect on Monday.
January 2 1899, and that all proceed
ings heretofore taken subsequently i'm
conformity with the Act, and to the
regulations of 1867, as far as practical
bic 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.
The rules are preceded by an order
prescribing the proceedings in bank
ruptcy under the law previous to the
day on which the rules go into effect.
! Nnder the head of Conduct of Pro-
| that proceedings may be conducted by
the bankrupt in person in his own be-
half or by a petitioning or opposing
CREDITOR but a creditor will only be
allowed to manage before the court his
individual interest. Every party may
appear and conduct the proceedings by
attorney, who shall be an attorney or
counsellor authorized to practice in the
Circuit or District Court"
| Notices and orders not required TO be
served on the party personally may be
served on his attorney.
| In the matter of priority, and in cases
where two or more petitions are filed
| by creditors against a common debtor,
| alleging separate acts of bankruptcy
on different days, it; is provided by Rule
Seven that preference shall be given to
the petition alleging the earliest act of
bankruptcy In case all the petitions
name the same day for the act, the
cases are to be consolidated
| Rule 8 provides that any member of
a partnerg4ip declared bankrupt shall
be entitled to resist the prayer of the
petition in the same manner as if the
petition had been filed by creditor of
! the partnership, and to make all de-
against is entitled to by the provisions
| of the Act
Rule 8 relates to cases of involuntary
bankruptcy, in which the bankrupt is
absent or cannot be found.
Rule 10 provides for the indemnity of
officers of the court for expenses prior
to the performance of duties.
Rule IL allows amendments to petit
he Irrf; Of
referees are prescribed by the twelfth
rule
Rule 13 allows either the Judge or the
Referee to pass upon Trustee ap-
pointed by creditors, but allows his re-
moval by the Judge only
Rule IA forbids the appointment Of
Trustees by the courts.
Rule 10 renders it allowable to dis
pense with Trustees in cases where
there are no assets.
Rule Is provides for the immediate
notification to the Referee of his accept
ance.
The duties of Trustees are outlined
by Rule IL.
The regulations for the sale of prop
erty made by Rule IS provide that all
sales shall be made by public auction,
unless otherwise ordered by the court.
Rule 21 relates to the proof of debts.
Other provisions require that notices
of proceedings shall be mailed to all
creditors requesting them that the
claims of persons contingently liable
for the bankrupt may be proved in the
name of the creditor unknown by the
party contingently liable; that Referees
may allow the re-examination of claims
against a bankrupt estate when de-
sired by the Trustee or a creditor, and
that claims which have before proof
shall be assorted by a deposition of the
owner at the time Of the commencement
of proceedings. setting forth the true
condition of the debt, and that it is en-
tirely unsecured, or if secured, the se-
|curity as is required in proving secured
claims.
Rule % relates to the taking Of
testimony.
Rule % relates to orders of the ref
cree, and Rule "a to the transmission
of proved claims to the Clerk of the
court.
Rule 25 provides for special meetings
of creditors.
Rule 26 requires the referee to keep
accurate accounts of expenses.
Rule 81 authorizes a review by the
Judge of any order made by the ref
cree on petition of the bankrupt, cred
itor or trustee.
Rule % permits the filing of petitions
for redemptions Of property.
Rule % relates to keeping of ac-
counts concerning money deposited.
Rule 30 relates to the Imprisonment
of debtors. The latter rule is as fol-
lows: IF at the time Of preferring his
petition the debtor shall be imprisoned,
the court, upon application, may order
him to be produced upon habeas cor
pus by the jailer or any officer in whose
custody he may be, before the referee
for the purpose of testifying in any
manner relating to his bankruptcy.
The court may, upon like application,
discharge him from such an imprison-
ment. If the petitioner during the
pendency of the proceedings in bank
ruptcy be arrested or imprisoned upon
process in any civil action, the District
Court, upon his application, may issue
a writ Of habeas corpus to bring him
before the court to ascertain whether
such process has been issued for the
collection Of any claim provable in