The Westport Times AND CHARLESTON ARGUS. THURSDAY, NOVEMBER 17, 1870.

Westport Times, Volume IV, Issue 738, 17 November 1870, Page 2

The Westport Times AND CHARLESTON ARGUS. THURSDAY, NOVEMBER 17, 1870.

The result of the bankruptcy proceedings at the sitting of the District Court, on Tuesday last, shows that insolvents yet fail to realise their precise position in respect to the Court of Bankruptcy.. They appear altogether oblivious of the fact that tho Court, while extending due protection to the unfortunate yet honest trader, is also invested with the power to punish an insolvent, whose affairs evidence a system of fraud or habits of recklessness. Acting upon this exaggerated notion of the facility wi.h which an insolvent may undergo the process of expunging his lhvbilitioo, wo fxai tkcit, in many instances little or no effort has been attempted to present to the Court an exposition of the insolvent's affairs, and such statements as have been rendered have not alone been incomplete, but have borne on their face the impress of having been prepared rather for the purpose of defrauding the creditors than to lay before the Court a true statement of the insolvent's position.

One applicant for his discharge prayed the indulgence of the Court for any shortcomings, as he bad previously enjoyed the advantage of professional assistance, but, in consequence of the many adjournments, had been unable to continue the expense of a legal adviser. The individual referred to held the belief that his was a case of considerable hardship; he had paid his solicitor " to put him through," but the desired end had not yet been attained. The expression did not escape his Honor, who commented upon its gross impropriety, and our only object in referring to it is for the purpose of showing the frame of mind, in which many insolvents make application to the Bankruptcy Court. It has been hitherto regarded as a comfortable sanctuary, in which the insolvent may shelter himself from importuning creditors, entailing no obligations upon the applicant, who, after passing through a dull formula, is absolved from all liability. The effect of the recent proceedings will be, we venture to think, to modify considerably this view. Debtors must now learn that the Court has the discretionary power to inflict penalties in addition to granting immunities, and hi the judicious exercise of the former power, the public will receive tho safest guarantee, that the Court will not be appealed to merely on frivolous or fraudulent pretexts.

Some time back we referred to a series of rules, regulating the forms of procedure in bankruptcy proceedings, and introducing an explicitly detailed and unifornx practice, which were passed by ,the\ Judges of the Supreme Court, and into force on tbe Ist of OcfoberTaStT Among other rules the .procedure of a bankrupt in filing his statement of accounts, is accurately defined in Clause 19, and as there appears to have existed considerable misapprehension or ignorance on the part of insolvents with respect to what is required, we append this clause, which is a very important one, and reads as follows :

The statement of accounts to be filed by the bankrupt in pursuance of the 112 th section of the Act shall in all cases comprise, first, a statement of the assets and liabilities of the bankrupt as existing on a day to be named for the purpose by the order appointing the time for the bankrupt's last examination, or by some order of the Court or a Judge, such to be not less than six *alendar months prior to the filing of the petition for adjudication; secondly, a statement of every receipt, purchase, profit, and acquisition by any means whatsoever, and

every payment, snle, loss, loan, eonveyani e, mortgage, settlement, execution, and other alienation by act of the party or by act or operation or law, and of every other transaction in anywise affecting the amount or nature of the bankrupt's assets and liabilities, which shall have been made or have taken place during tho period intervening between the day so named as aforesaid, and the filing of fclie said petition : Provided that every order of the Court or a Judge respecting such account may from time to tiiiiebe varied

This account must be filed at least ten clear days before the final examination.