The evening times., 1900-04-03

untary nature TO wives and relatives, but
also those which may be merely suffered
for the benefit of friendly local banks and
large mercantile houses. The diligent cred
itoT no longer obtains an advantage liens
and attachments laid and recovered within
four months of a bankrupt proceeding are
void. and collusion and fraud by bank
rupt to give an undue advantage to some
pressing or friendly creditor is at an end.
Creditors control the choice of trus-
tees. as well as all ordinary proceedings
in the administration of estates. An as
signment for The benefit of creditors is
voidable. and. when attacked it falls and
the creditors have the right 10 name the
trustees 10 manage the estate. The prin
ciple that insolvent estates should be
managed by those to whom they belong
the creditors-has been fully asserted and
maintained if never before. Claims are
easily and eheaply proven and dividends
paid without very great expense.
Some of the defects of the law. how
ever. have been noticed. and the referees
in bankruptcy. through committee, have
recommended TO Congress several amend
ments to the law. which amendments are
now before the Judiciary Committee of the
House Of Representatives.
In the matter of discharge the law as
il at present stands is quite defective.
and comparatively few discharges have
been refused as il is almost impossible
under the existing law to show acts of
that kind which the law itself prohibits.
1t is now proposed TO amend the law in re-
lation to discharges by adding additional
objections which may be urged TO prevent
a man receiving his discharge. Among
these is a materially false statement in
writing for the purpose of obtaining prop
erty on credit by making fraudulent pref
erences. While a preference is an act of
bankruptcy, yet ii has not heretofore been
an objection to a bankrupt's discharge.
preference, however, may often be inno-
cent, and if so should not be bar to a
discharge. The amendment, therefore,
contemplates only a fraudulent preference
as an objection to a discharge. The bank
rupt, however. may meet this objection if
a fraudulent preference is surrendered
within ten days after demand by a receiver
or trustee.
Another amendment relating TO the
discharge is that where man makes a
fraudulent transfer of any portion OF his
property to any person a discharge nay
be denied him. Another amendment con-
templates the prevention of the dis
charge when the bankruptcy is due TO
proceedings in bankrupt courts know that
many creditors. when examined, have
stated that their losses we're due to gamb-
ling. The extent of the gambling must.
however. be of such a nature as 10 ma
terialiy conduce to the failure, and the
amendment contemplates such an extent
Of gambling as has materially contributed
to or brought on the bankruptcy. II
this amendment should pass definition
OF gambling by the courts may become in
teresting. and the question NAV arise
whether dealing in stocks or margins may
not bring the person dealing within the
contemplation OF this section if he be-
comes a bankrupt
Another amendment suggested as a
prevention for discharge is previous dis
charge in bankruptcy. The English act
denies a discharge to a bankrupt who has
been previously discharged. The present
amendment. however. is not so severe as
this. as il contemplates that after six
years a man may be again discharged.
Another amendment relates to the de-
struction OF books with a view to conceal
ing financial condition, and the Sec
tion relating to this will be amended so
as to read that the discharge will be re-
fused where a man with fraudulent in
tent to conceal his true financial condi
tion and in contemplation OF bankruptcy
since the passage OF this act destroyed,
concealed or failed to keep books of ac-
count or records from which such condi-
tion might be ascertained. Another
amenoment in this connection relates to
the time within which a man may apply
for his discharge. The act allows the ap-
plication to be made after thirty days
from his adjudication The amendment