The Montgomery advertiser., 1902-05-20

V ag ' . a sassa ss.,as., s, ths A aiss.s.sias . senss. s;. SsS ss. s Sss n s sny as 1sss Ss dition aud dsstiny .of the debtor. bY graht- in9 ffberal e1eanptiones and pf0vi6ing for pertodfc discharqe froq debt To accom. plish tssss rsslss tasl eankrupt m law s, not with few sxcspfions, but to ail intenta and purpooeg malkeu the bankrupt . cred flor with lien. so to spsak, and prefers him Q crsditcrs tc ths sStsrt M q ,hi: ,,s:. q. cardinal pvrposs deminatei the whole Iew. when the statute deals with the dissolution and annulment Of attach ments, tudemerits. etc. t is careful to sesy ts m xsisS sSsspsS ss sS sSs 's property shah not bs affected by the changed legal status imparted to the rest Of hta estate, by the dissolution of at tachments and Hens: and that n the, ease Ss and ss.dscr msss Hss
 in which this is provided, is preceded by one relating to the same sensrai sub1ect, In which no such exception is made and it l. followed by another section, v, Tnlch ,a S suaea. that ''ail Hens shall 0e deemed null and void. and the .propertf affected shaN be wholly discharxed and reasased and shall pass to she trustses .: 2 psrs sus
 
 statute did not Intend to except exempt property from the eflect of its policy in declaring all liens void save tn5 the ir- stance ynsutionsd, why use such sweep .s sss, :nS 4 PscsSs .s ssc sssy h the other sectiona in specilyins what stell pass to the trustee. Thin studied difereree In the language of the asrsns sn ,n ss the ss sss fct of their dissolution or annullment. cannot be ignored in ascertaintng the leg isiattve intent. It .is sfgnincant Of pur- pose not to exclude exempt property, sss' Ss bsnss m sRs Of or' hs snnSsss
 and to pass it to the trustee for the bene- ht of the bankrupt The main reason for the four months provision3 was to pre- s.t. ssns as S Sy .n G 'ss snd that he Is in failing cireuriastances. and to prevent the preferences which would folle~ if liens and attachments were al- lowed durtng that period, This purpose be created upon the exempt property. Some creditors would unauestionably be preferred. Some would receive satisfae- tion In whole. some In. part and some nothing. All this. in the face of thespoi- empt property and to require all cred itors who had not acquired 'lienA older than four months. or which are protected. to share equally In the bankrupt's es. tate. To hold that subdivisions O and E of section q have no reference to attach ment Hens, within four months upon ex- empt, property. Is not euthofised by, the spirit of tho statute, and would import into 1t bv construction an exception. in the teeth of the plain command that all attachments. etc. shall be deemed null and void and the property affected shall De wholly discharged and released from the sanne,s r 4s z sub division F 1t can have no effect in this case. since the debtor resisted the lien and the creditors did not know he was In contemplation of ,hankruptcy. Without entering into any extended dis that sub division r desyoys sub-division c. If subdivision r had been enacted In subsequent independent statute there would be little doubt that 1t was intend. liens obtained through legal proceed ings." and would necessarily amount to q repeal of the prior law on the subject, though there were no express words ;of rsoeal In view Of the known history q the fact that subdivision F Is the latest utterance in point of time on the sub. feet of liens obtained by operation oi law I feel compelled to hold that sub division of section H controls this
 Under that section the lien of the at tachment 'Is null and void" and the '.propertv affected is wholly .'diseharEed the trsistee ''as 2 part of the estate ?i the bankrupt" This construction Is fr harmony with other provisions of the blnkrupt law to have the whole estate including the exempt property. pass to bankrupt court. For certain purposes the court takes possession of the exempt property. and the right of possession passes to the trustee for that purpose The court Is given express power to de. the property to the bankrupt. Although the title to the exempt property does moi pass to the trustee, yet as the purpose oi the bankrupt law Is to protect 1t and tc save 1t to the bankrupt, to the detriment of creditors, the language of the act fl, section 67 subdivision F. where 1t speaks of the property affected by the levy pass ing to the trustee, must be construed tc whom 1t may concern. in the order thai the language and policy Of the bankrupt law requires. It commands him to set apart some of the property to the bank rupt. whose title is not intended to be af- fected by its passing into the possession of the trustee. and 10 devote, the rest to the payment of debts. It best comports with the language and policy of the bank rupt law to hold that 1t annuls all liens with the exception stated therein, which 
 erty by legal proceedings within four months of the filing. and that It intended to destroy such lien upon exempt prop. erty as well as upon the other property of the bankrupt. taf .,s
 The questions before me are certified at the instance of Harlan and Sloan, creditors. They proved their claims be- fore the hearing of the motion to dis solve the injunction. land rely upon facts proved on the hearing to sustain their exceptions. Clearly Harlan and Sloan were parties to the bankrupt proceedings and cannot in any event complain that the court could not exercise summary jurisdiction over them. Bryan svs.. Bern. heimer. iSi U, s. D. 1S3. They should have been served with notice of the petition and had an opportunity to be heard be. fore the mandatory injunction issued. If as appears from the petition. there was an exigency 1t could have been met by a temporary restraining order and then in junction could 20 as the case might re- quire. The exceptions before me relate only to the propriety of the order itself, and not the manner of it's making.
 These creditors had TO claim wharever In the raft of logs, or title or right of possession, save such as might bc i''und- ed upou the lsyy of the attaehRent In their suit against Tune three days be- fure the adtudication. Tune was. all the time insclycnt. The adjudication an nuiled" tho levy and dissol yed any. lien ouired thcreunder. and made if the duty of the creditors to refr1in nfreln rnshine their suits 10 judgment and t1atsting that the justice render judgment cf condemn ation. The adiudication was properly pleaded before the justice before any or der of condemnation sas made. They have no right to complain cf tho appoint vnapt nf . racstver ar of the order to the