The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-01-07
Rail BANKRUPT Law
d that Il Has Suspended State
Assignment Laws
bon BEARING on THAT POINT
lem Rendered in the United
Ia Circuit Court for East-
In District OF Missouri.

keM Rendered IN Inv umsseu
"a Circuit Court for ENst-
I'm District OF Missouri.
ION, Texas. January 5.--Scarcely a
g without the newspapers contain
ce Of some one making an assign
her the State law. Sometimes 1t
Of sale and sometimes 1t Is a
Mortgage. In whatever form. It is
br the benefit Of creditors and in
Ion Of some good attorneys here
kely void.
bntended chat the enactment Of a
bankruptcy law suspended the
Of all State assignment or in
laws. This position is sustained
all the authorities and by .nu-
decisions from the higher courts.
NO middle ground; either one or
br must be superior. Black on
by says:
passage Of a National bankrupt
pngress renders 1t supreme. The
he In force must Yield to 1t and
bigger operate on persons or cases
e p,irview OF the Federal statute.
Ter does not indeed repeal or de-
Suite laws on the same subject,
6uspends their operation. II tho
and the Federal act operate on
subject matter, upon the same
upon The Same rights and upon
e persons, creditors as we'll as
or may go operate, they can not
her without direct and positive
fnnd in such case the Federal en-
suspends and supersedes the
!"
bosition,' said Attorney Noah AL
rgh whose kindness the reporter
the quotation, lis supported by
of decisions. maintain that
knment under Our State. law. OF
form. Inado for the benefit OF
comes in conflict with the Ma
nkruptcy law passed by the last
and is. therefore, void. Such
hi or bin OF sale could be at
b any dissatisfied creditor and
purpose OF the act be defeated
Great blessing OF the bankruptcy
give deserving debtors final
from all their Indebtedness.
could easily be frustrated by the
lie debtor attempting to wind
affairs under the State law. If
10 the test l don't believe any
BE- would stand
Nanny peculiar conditions are aris-
Sr the bankruptcy law. A short
. a corporation in this State
to avail itself of the generous
b OF the act. They sought the
an attorney and in discussing
4 it was learned that they had a
be before transferred some prop
! certain creditor. In consummat-
ftrade the corporate seal was not
bu transfer will now be attacked
= bankruptcy law by reason of
Iesfcn.
Republic. 4th.
bortant opinion was handed down
by Judge Adams In the Unitei
Strict court for the Eastern dis
Missouri In the matter of Charles
De, bankrupt.
"a. the opinion would put an end to
|6ments for the benefit of creditors
bcal State laws since the passage.
1898. by the Federal congress Of
ENTITLED: IAN act to establish
system OF bankruptcy throughout
ID States" whenever any party
i elects to invoke the aid of the
Statute.
made an assignment to Henry b.
the benefit Of creditors on De-
1898. On December 10 the Adam
cery company and other credito S
etition asking an adjudgment of
ny against Sieyers and the naming
ver hereunder and the restrain
wis from taking any further ar
making return to the petition, Da-
two propositions:
y, although the making of a gen,
nment is made an act of bank
here Is no provision of the bank
|annulling or avoiding such assign
= no power conferred by the cou.t
f,pstee TO take possession of aud
the assets SO assigned.
any action concerning the re-
right to hold the assigned prop
be brought in chs courts OF the
ich have exclusive jurisdiction
hing the case Judge Adams says.
Ing these different contentious,
to me that there is substantial
between the proceeding under
Insolvency statute and one under
permitting general assignments
dministers upon the estate OF an
as pro ceading in the courts:
potency from the law; Winds
state 1udleialby. and discharges
Such Is essentially a proceed
kruptcy. and such Is undoubtedly
by the act OF congress in ques-
Proceedings under insolvency laws
Re now void. whether proceedings
lptcy follow or not, proceedings
general assignment laws of
MISSOURI. or under the common
OF assignment. are not VOID or
unless avoided where proceedings
ptcy are subsequently instituted;
Ter such is the case when adjudi-
bankruptcy follows is now TO be
eth subdivision OF section 8 OF the
krupt act makes "a general as
for the benefit OF his crsditors"
bankruptcy on the part Of the
be making OF such assignment
e debtor to the pain ana D snuI-
act. when invoked by his credit
four months after it Is made.
words. as to his creditors II Ia
ohibitum--a wrongful act, ana.
option. the dcb,or may. because
mission, be adtidicated a bank
property, under the general
the bankrupt act, taken from
Pdmlnisteli;M BY the trustee who
by them for the equal benefit
tlitors.
ued that such an art Of the debtor
y only to the extent that 1t az
creditors the occasion to secure
ation Of bankruptcy against him.
wrongful to the extent OF an