Full text of Bankruptcy Act of 1800

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SIXTH CONGRESS.

Sess. I. Ch. 18, 19.

1800.

19

have been issued, and all recognizances returnable, and all suits and
other proceeding, which have been continued to the said district court
on the first Monday in April next, shall be returned and held continued
to the said court on the first Monday of May next.
Approved, March 19,1800.
-----------

Statute I.

Chap. XVIII.—Jin Jet to extend the privilege of franking letters and packages
to Martha Washington.

April 3, 1800.

-------------------

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That all letters and
packages to and from Martha Washington, relict of the late General
George Washington, shall be received and conveyed by post free of
postage, for and during her life.
Approved, April 3, 1800.
Statute I.

Chap.

XIX.—Jin Jlct to establish

an uniform System of Bankruptcy throughout
the United States fa)

April 4, 1800.

Repealed by

Section 1. JBe it enacted by the Senate and House of Representatives Act of Dec. 19,
of the United States of America in Congress assembled, That from 1803, ch. 6.
(a) Decisions on the Bankrupt Law of the United States.—The holder of a promissory note, drawn
before, but transferred after a commission of bankruptcy had issued against the drawer, is entitled to
prove his debt under the commission, and to receive a dividend. Humphreys v. Blight’s Assignees, 4
Dali. 370.
In the case of negotiable paper, the assignee takes it, discharged of all the equity as between the
original parties, of which he had no notice. But wherever the assignee has notice of such equity, either
positively or constructively, he takes the assignment at His peril. A commission of bankruptcy is legal
notice that wherever mutual debts subsisted between the bankrupt and his creditors, the right of set-off
attaches. When the negotiable paper was assigned after the commission of bankruptcy, the party takes
it, subject to any set-off as between the drawer and payee. Ibid.
Under the bankrupt law of the United States, a joint debt may be set-off against the separate claim
of the assignee of one of the partners; but such set-off could not have been made at law, independent
of the bankrupt law. Tucker v. Oxley, 5 Cranch, 34; 2 Cond. Rep. 182.
A joint debt maybe proved under a separate commission, and a full dividend received; it is equity
alone which can restrain the joint creditor from receiving his full dividend until the joint effects are ex­
hausted. Ibid.
Wherever the terms in which a power is granted by the constitution to Congress, or wherever the nature
of the power itself, requires that it shall be exclusively exercised by Congress, the subject is completely
taken away from state legislatures, as if they had been forbidden to act upon it. The power granted to
Congress of establishing uniform laws on the subject of bankruptcy, is not of this description. Sturges
v. Crowninshield, 4 Wheat. 122; 4 Cond. Rep. 409.
In the distribution of a bankrupt’s effects in this country, the United States are entitled to a prefer­
ence, although the debt was contracted by a foreigner in a foreign country; and although the United
States had proved their debt under the commission of bankruptcy, and had voted for an assignee. Har­
rison v. Sterry et al., 5 Cranch, 289; 2 Cond. Rep. 260.
A conveyance on the eve of bankruptcy, to give a preference to a particular class of creditors, is a
fraud on the bankrupt law and void. Ibid.
Such assignment may be valid to secure money actually advanced on the credit of it, and subsequent
to its date. Ibid.
Under a separate commission of bankruptcy, against one partner only, his private property, and his
interest in the funds of the company passes. Ibid.
The right to compensation from Spain, held under an abandonment made to underwriters, and accepted
by them, for damages and injuries, which were to be satisfied under the treaty, by the United States;
passed to the assignees of the bankrupt, who held such rights by the provisions of the bankrupt law of
the United States, passed April 4, 1800. Comegys et al. v. Vasse, 1 Peters, 193,
The circuit courts of the United States have jurisdiction of matters arising under the bankrupt law of
the United States, as they have of any other subject, where the constitution and laws of the United States
give jurisdiction; but the district courts have not the same jurisdiction in cases of bankruptcy, as the
chancellor of England has. Lucas et al. v. Morris et al., 1 Paine’s C. C. R, 396.
The district courts of the United States have not, like the chancellor in England, exclusive jurisdiction
over the entire execution of the bankrupt law. They cannot remove assignees, nor compel them to
account. Ibid.
Upon the death of an assignee under the bankrupt law of the United States, the right of action for a
debt due to the bankrupt, vested in the executor of the assignee. Richards et al. Assignees, &c. u. Ma.
ryland Ins. Co., 8 Cranch, 84; 3 Cond. Rep. 45.
Where the original ground of action is founded on contract, but the immediate cause arises ex delicto,
and the claim is for damages, unliquidated by any express agreement, or such as the law will not imply
an agreement to pay; the certificate of bankruptcy is no bar; because such claim could not have been
proved under the commission. Dusar «. Murgatroyd, 1 Wash. C. C. R. 13.

20
Who may be
a bankrupt.

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

and after the first day of June next, if any merchant, or other person,
residing within the United States, actually using the trade of merchan­
dise, by buying and selling in gross, or by retail, or dealing in exchange,
or as a banker, broker, factor, underwriter, or marine insurer, shall,

But if the agreement were to pay a particular sum, on failure to perform the contract; or if the case
was such that the plaintiff* has his election to bring either trespass or case for money had and received,
and waives the former by bringing the latter;' the damages become a debt, which the law implies a pro­
mise to pay, and the certificate » a bar. Ibid.
In an action brought against the owner of u vessel for damages for an injury sustained on board a ship
by the neglect of the master, a certificate of bankruptcy cannot be pleaded in bar. Ibid.
One guilty of perjury in proceedings under the bankrupt law, cannot be prosecuted for the offence,
after the repeal of the law. United States v. Passmore, 4 Dali. 372.
A deed executed before the 1st of June, 1800, although acknowledged after, is not within the 1st
section of the bankrupt act of April 4th, 1800, chap. 19. Wood v. Owings, 1 Cranch, 239; 1 Cond.
Rep. 302.
A certificated bankrupt or insolvent, discharged from the particular contract, need not be made a party
to the bill on the contract. Van Reimsdyke v. Kane’s Ex’r, 1 Gall. C. C. R. 371.
The power given to Congress to pass uniform laws, relative to bankruptcy, is exclusive of such power
in the state governments ; and this, whether the former has thought proper to exercise it or not. Golden
v. Prince, 3 Wash. C. C. R. 313.
A discharge from a debt under the bankrupt laws of the place of contract, is good in every other place
where pleaded, as an extinguishment of the debt. But a like discharge where the contract is not made,
has no effect. Le Roy v. Crowninshield, 2 Mason’s C. C. R. 151.
A debtor concealing himself from, and being denied to his creditors, does not constitute an act of
bankruptcy under the laws of the United States; unless the service of process is thereby prevented.
Barnes et al. u. Billington, 1 Wash. C. C. R. 29.
If the debtor order himself to be denied to creditors and others, and is in consequence thereof denied
to an officer, who comes to serve a process, it is an act of bankruptcy ; provided the officer comes to
serve the process, and not on other business: and the denial has taken place within six months of the
issuing of the commission. Ibid.
Giving a bond, with warrant to confess judgment to one creditor, upon the eve and in contemplation
of bankruptcy, docs not constitute a bankruptcy; unless the judgment entered on the bond, and the
issuing of the execution was at the instance or by the procurement of the debtor. Such a bond would
be a fraud on the general creditors. Ibid.
Where two of three assignees of a bankrupt enter into an agreement in the absence of the third, the
contract is not binding on the absent assignee; unless he had previously given authority to make it, or
substantially recognize and acknowledge it. Aliter, among partners. Blight v. Ashley et al., 1 Peters’

The agreement of the assignees of a bankrupt, to give a preference to a particular creditor, is not
valid, without the assent of the commissioners, and a certain portion of the creditors. Ibid,
Denial to an officer, whereby he is prevented serving process, must be really adversary, and not by
concert between the creditor and the debtor, to bring about an act of bankruptcy. Ibid.
No debt but such as is due and owing at the time of the bankruptcy, can be proved under the com­
mission; and, consequently, an endorser or acceptor of a bill of exchange, drawn by the bankrupt, who
has not paid it before the bankruptcy, cannot prove the debt. Marks et al. Assignees v. Barker et al., 1
Wash. C. C. R. 178.
The acceptor or endorser of a bill of exchange, who pays the bill after the bankruptcy of the drawer,
may offset the same against the bankrupt’s assignees; but he must show the debt to be a subsisting one
in him, at the time the action was brought, for this is a case of mutual credit, given before the bank­
ruptcy, although the money was not paid until after. Ibid.
The district courts of the United States have not power, in bankrupt cases, to remove assignees, or
compel them to account. Lucas v. Morris, Paine’s C. C. R. 396.
The holder of the negotiable paper, payable “ without defalcation,” under the laws of Pennsylvania,
assigned after a commission of bankruptcy has issued, may come in under the commission; allowing all
just offsets existing at the time of the bankruptcy, and which would have been admitted if the assignment
had not been made. Humphreys v. Blight’s Assignees, 1 Wash. C. C. R. 44.
The purchaser of a negotiable note, who becomes so after a commission of bankruptcy has issued, may
prove under the commission ; and he holds the note, subject to all legal offsets. Ibid.
The 65th section of the bankrupt law of the United States, passed the 2d of March, 1799, does not
repeal the provisions of the laws of the United States, which give to the surety who pavs bonds for
duties, a preference over other creditors. Mott v. The Assignees of Maris, 2 Wash. C. C. R. 196.
_ The provisions of the bankrupt law except from its general operation, not only the preference of the
United States, but also the right of preference for satisfaction of debts due to the United States. Ibid.
P. paid a sum of money to the United States, as surety of S., in a bond for duties. S. became insol­
vent, and assigned his effects to Baker, who received four thousand dollars under the assignment, mixed
the same with his own funds, and afterwards became bankrupt, and the defendants were appointed his
assignees; but no effects, known to be part of the estate of S., came into their hands. The plaintiff
ST‘“” J ‘° have ? preference and priority over the genera] creditors of Baker. By the Court—Although the
United States might, under the 65th section of the law to regulate the collection of duties, be entitled to
claim ot the defendants to the amount which came into the hands of B., as the assignees of S., the pro­
visions of the law do not extend to the surety who has paid the bond, the same rights and privileges.
Pollock i>. Pratt & Harvey, 2 Wash. C. C. R. 490.
•
s
A. H. devised an estate to C. S., for life; and after the death of C. S., he directed that the estate should
be sold, and divided among the grandchildren of the testator, who should be living at the death of C. S.
B. mamed one of the grandchildren, and, before the death of C. S., B. became bankrupt. B. and wife,
after the decease of C. 8., sold the property claimed under the will of A. H„ and the plaintiff claimed

SIXTH CONGRESS.

Sf.ss. I. Ch. 19.

1800.

with intent unlawfully to delay or defraud his or her creditors, depart
from the state in which such person usually resides, or remain absent
therefrom, or conceal him or herself therein, or keep his or her house,
so that he or she cannot be taken, or served with process, or willingly
or fraudulently procure him or herself to be arrested, or his or her lands,
goods, money or chattels to be attached, sequestered, or taken in execu­
tion, or shall secretly convey his or her goods out of his or her house,
or conceal them to prevent their being taken in execution, or make, or
cause to be made, any fraudulent conveyance of his or her lands, or
chattels, or make or admit any false or fraudulent security, or evidence
of debt, or being arrested for debt, or having surrendered him or herself
in discharge of bail, shall remain in prison two months, or more, or
escape therefrom, or whose lands or effects being attached by process
issuing out of, or returnable to, any court of common law, shall not,
within two months after written notice thereof, enter special bail and
dissolve the same, or in districts in which attachments are not dissolved
by the entry of special bail, being arrested for debt after his or her lands
and effects, or any part thereof, have been attached for a debt or debts
amounting to one thousand dollars or upwards, shall not, upon notice of
such attachment, give sufficient security for the payment of what may
be recovered in the suit in which he or she shall be arrested, at or
before the return day of the same, to be approved by the judge of the
district, or some judge of the court out of which the process issued
upon which he is arrested, or to which the same shall be returnable,
every such person shall be deemed and adjudged a bankrupt: Provided,
that no person shall be liable to a commission of bankruptcy, if the peti­
tion be not preferred, in manner herein after directed, within six months
after the act of bankruptcy committed.
Sec. 2. And be it further enacted, That the judge of the district
court of the United States, for the district where the debtor resides, or
usually resided at the time of committing the act of bankruptcy, upon
petition, in writing, against such person or persons being bankrupt, to
him to be exhibited by any one creditor, or by a greater number, being
partners, whose single debt shall amount to one thousand dollars, or by
two creditors, whose debts shall amount to one thousand five hundred
dollars, or by more than two creditors, whose debts shall amount to two
thousand dollars, shall have power, by commission under his hand and
seal, to appoint such good and substantial persons, being citizens of the
United States, and resident-in such district, as such judge shall deem
proper, not exceeding three, to be commissioners of the said bankrupt,
and in case of vacancy or refusal to act, to appoint others from time to
time, as occasion may require :(a) Provided always, that before any

21
What shall be
an act of bank­
ruptcy.

Proceedings
to obtain' a com­
mission ofbankruptcy.

under this conveyance. By the Court—The decisions of the English courts, abundantly prove that a
possibility, whether belonging to the husband or the wife, would not pass to the assignees of the husband,
on his becoming bankrupt, if it were not for the strong language of the statutes of bankruptcy. Krumbaar v. Burt, 2 Wash. C. C. R. 406.
The possibility held by B., under the will of A. H., formed no part of his estate to which he was enti­
tled in law or equity, of which the commissioners could take possession under the 5th section of the
bankrupt law of the United States; and, therefore, they could not transfer it to the assignees of the bank­
rupt, under the provisions of the 6th section. Ibid.
The provisions of the English bankrupt laws, and those of the bankrupt law of the United States, differ
in relation to the contingent interests of the bankrupt; and it is clear, that by the most liberal construc­
tion of the law, the interest of the husband in the estate of his wife, under the will of A. H., did not
pass to the assignees. Ibid.
The provisions of the 13th section of the bankrupt law of the United States, do not affect this question ;
they do not require an assignment of contingent interests, but relate to their disclosure by the bankrupt.
Ibid.
So exclusively have bankrupt laws operated on traders, that it may well be doubted, whether an act of
Congress, subjecting to such a law every description of persons within the United States, would comport
with the spirit of the powers vested in them in relation thereto. Per Livingston, J. in Adams v. Storey,
Paine’s C. C. R. 79.
(a) By the 14th section of the act of April 29, 1802, entitled, “ An act to amend the judicial system of
the United States,” the commissions in bankruptcy issued by the district judge were to be directed to
general commissioners appointed by the President of the United States in each district.

22

Commission­
ers to take an
oath, and the
mode of declar­
ing the party a
bankrupt.

Commission­
ers may cause
the bankrupt to
be arrested.

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

commission shall issue, the creditor or creditors petitioning shall make
affidavit or solemn affirmation before the said judge, of the truth of his,
her, or their debts, and give bond, to be taken by the said judge, in the
name, and for the benefit of the said party so charged as a bankrupt,
and in such penalty, and with such surety as he shall require, to be con­
ditioned for the proving of his, her, or their debts, as well before the
commissioners as upon a trial at law, in case the due issuing forth of
the said commission shall be contested, and also for proving the party a
bankrupt, and to proceed on such commission, in the manner herein
prescribed. And if such debt shall not be really due, or after such com­
mission taken out it cannot be proved that the party was a bankrupt,
then the said judge shall, upon the petition of the party aggrieved, in
case there be occasion, deliver such bond to the said party, who may sue
thereon, and recover such damages, under the penalty of the same, as,
upon trial at law, he shall make appear he has sustained, by reason of
any breach of the condition thereof.
Sec. 3. And be it further enacted, That before the commissioners
shall be capable of acting, they shall respectively take and subscribe the
following oath or affirmation, which shall be administered by the judge
issuing the commission, or by any of the judges of the supreme court
of the United States, or any judge, justice, or chancellor of any state
court, and filed in the office of the clerk of the district court: “ I, A. B.,
do swear, or affirm, that I will faithfully, impartially, and honestly, ac­
cording to the best of my skill and knowledge, execute the several
powers and trusts reposed in me, as a commissioner in a commission of
bankruptcy against
and that without favour or affection,
prejudice or malice.” And the commissioners, who shall be sworn as
aforesaid, shall proceed, as soon as may be, to execute the same; and
upon due examination, and sufficient cause appearing against the party
charged, shall and may declare him or her to be a bankrupt: Provided,
that before such examination be had, reasonable notice thereof, in wri­
ting, shall be delivered to the person charged as a bankrupt; or if he,
or she, be not found at his or her usual place of abode, to some person
of the family above the age of twelve years, or if no such person appear,
shall be fixed at the front or other public door of the house, in which he
or she usually resides, and thereupon it shall be in the power of such
person, so charged as aforesaid, to demand before, or at the time ap­
pointed for such examination, that a jury be empanneled to inquire into
the fact or facts, alleged, as the causes for-issuing the commission, and
on such demand being made, the inquiry shall be had before the judge
granting the commission, at such time as he may direct, and in that
case, such person shall not be declared bankrupt, unless, by the verdict
of the jury, he or she shall be found to be within the description of this
act, and shall be convicted of some one of the acts described in the
first section of this act: Provided also, that any commission which shall
be taken out as aforesaid, and which shall not be proceeded in as
aforesaid, within thirty days thereafter, may be superseded by the said
judge, who shall have granted the same, upon the application of the
party thereby charged as a bankrupt, or of any creditor of such per­
son, unless the delay shall have been unavoidable, or upon a just oc­
casion.
Sec. 4. And be it further enacted, That the commissioners so to be
appointed, shall have power forthwith, after they have declared such
person a bankrupt, to cause to be apprehended, by warrant under their
hands and seals, the body of such bankrupt, wheresoever to be found,
within the United States: Provided, they shall think, that there is rea­
son to apprehend that the said bankrupt intends to abscond or conceal
him or herself, and in case it be necessary, in order to take the body of
the said bankrupt, shall have power to cause the doors of the dwelling-

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

house of such bankrupt to be broken, or the doors of any other house
in which he or she shall be found.
Sec. 5. And be it further enacted, That it shall be the duty of the
commissioners so to be appointed, forthwith, after they have declared
such person a bankrupt, and they shall have power to take into their
possession, all the estate, real and personal, of every nature and descrip­
tion to which the said bankrupt may be entitled, either in law or equity,
in any manner whatsoever, and cause the same to be inventoried and
appraised to the best value, (his or her necessary wearing apparel, and
the necessary wearing apparel of the wife and children, and necessary
beds and bedding of such bankrupt only excepted) and also to take into
their possession, and secure, all deeds and books of account, papers andwritings belonging to such bankrupt; and shall cause the same to be
safely kept, until assignees shall be chosen or appointed, in manner
hereafter provided.
Sec. 6. And be it further enacted, That the said commissioners shall
forthwith, after they have declared such person a bankrupt, cause due
and sufficient public notice thereof to be given, and in such notice shall
appoint some convenient time and place for the creditors to meet, in
order to choose an assignee or assignees of the said bankrupt’s estate
and effects;—at which meeting the said commissioners shall admit the
creditors of such bankrupt to prove their debts;—and where any credit­
or shall reside at a distance from the place of such meeting, shall allow
the debt of such creditor to be proved by oath or affirmation, made
before some competent authority, and duly certified, and shall permit
any person duly authorized by letter of attorney from such creditor, due
proof of the execution of such letter of attorney being first made, to vote
in the choice of an assignee or assignees of such bankrupt’s estate and
effects, in the place and stead of such creditor: and the said commis­
sioners shall assign, transfer or deliver over, all and singular the said
bankrupt’s estate and effects, aforesaid, with all muniments and evi­
dences thereof, to such person or persons as the major part, in value, of
such creditors, according to the several debts then proved, shall choose
as aforesaid : Provided, always, that in such choice, no vote shall be
given by, or in behalf of any creditor whose debt shall not amount to
two hundred dollars.
Sec. 7. Provided always, and be it further enacted, That it shall be
lawful for the said commissioners, as often as they shall see cause, for
the better preserving and securing the bankrupt’s estate, before assignees
shall be chosen as aforesaid, immediately to appoint one or more assignee
or assignees of the estate and effects aforesaid, or any part thereof;
which assignee or assignees aforesaid, or any of them, may be removed
at the meeting of the creditors, so to be appointed as aforesaid, for the
choice of assignees, if such creditors, entitled to vote as aforesaid, or
the major part, in value, of them, shall think fit; and such assignee or
assignees as shall be so removed, shall deliver up all the estate and
effects of such bankrupt, which shall have come to his or their hands or
possession, unto such other assignee or assignees as shall be chosen by
the creditors as aforesaid; and all such estate and effects shall be, to all
intents and purposes, as effectually and legally vested in such new as­
signee or assignees, as if the first assignment had been made to him or
them, by the said commissioners; and if such first assignee or assignees
shall refuse or neglect, for the space of ten days next after notice, in
writing, from such new assignee or assignees of their appointment, (a)
as aforesaid, to deliver over as aforesaid, all the estate and effects as
aforesaid, every such assignee or assignees shall, respectively, forfeit a
sum not exceeding five thousand dollars, for the use of the creditors,
and shall moreover be liable for the property so detained.
Sec. 8. And be.it further enacted, That at any time, previous to the
(a) Apportionment in the original.

23

They shall
take into their
possession the
bankrupt’s pro­
perty, books
and papers.

Notice of the
bankruptcy, ap­
pointment of as­
signees, proof
of debts, and
assignment of
the bankrupt’s
estate.

24
Creditors may
remove the as­
signees and
choose others.

Suits not
abated by the
removal of as­
signees.

General effect
of the assign­
ment by the
commissioners.

It shall bar an
estate tail.

Commission­
ers may tender
performance of
the conditions
on which the
bankrupt’s pro­
perty is pledged.

SIXTH CONGRESS.

Sess. I. Cn. 19.

1800.

closing of the accounts of the said assignee or assignees so chosen as
aforesaid, it shall be lawful for such creditors of the bankrupt, as are
hereby authorized to vote in the choice of assignees, or the major part
of them, in value, at a regular meeting of the said creditors, to be called
for that purpose, by the said commissioners, or by one fourth, in value,
of such creditors, to remove all or any of the assignees chosen as afore­
said, and to choose one or more in his or their place and stead: and
such assignee or assignees as shall be so removed, shall deliver up all
the estate and effects of such bankrupt, which shall have come into his
or their hands or possession, unto such new assignee or assignees as
shall be chosen by the creditors, at such meeting; and all such estate
and effects shall be, to all intents and purposes, as effectually and legally
vested in such new assignee or assignees, as if the first assignment had
been made to him or them, by the said commissioners: and if such
former assignee or assignees shall refuse or neglect, for the space of ten
days next after notice, in writing, from such new assignee or assignees,
of their appointment, as aforesaid, to deliver over, as aforesaid, all the
estate and effects aforesaid, every such former assignee or assignees,
shall, respectively, forfeit a sum not exceeding five thousand dollars, for
the use of the creditors, and shall moreover be liable for the property so
detained.
Sec. 9. And be it further enacted, That whenever a new assignee
or assignees shall be chosen as aforesaid, no suit at law or in equity shall
be thereby abated ; but it shall and may be lawful for the court in which
any suit may depend, upon the suggestion of a removal of a former
assignee or assignees, and of the appointment of a new assignee or as­
signees, to allow the name of such new assignee or assignees, to be substi­
tuted in place of the name or names of the former assignee or assignees,
and thereupon the suit shall be prosecuted in the name or names of the
new assignee or assignees, in the same manner as if he or they had
originally commenced the suit in his or their own names.
Sec. 10. And be it further enacted, That the assignment or assign­
ments of the commissioners of the bankrupt’s estate and effects as afore­
said, made as aforesaid, shall be good at law or in equity, against the
bankrupt; and all persons claiming by, from, or under such bankrupt,
by any act done at the time, or after he shall have committed the act of
bankruptcy, upon which the commission issued: Provided always, that
in case of a bona fide purchase made before the issuing of the commis­
sion from or under such bankrupt, for a valuable consideration, by any
person having no knowledge, information, or notice of any act of bank­
ruptcy committed, such purchase shall not be invalidated or impeached.
Sec. 11. And be it further enacted, That the said commissioners shall
have power, by deed or deeds, under their hands and seals, to assign
and convey to the assignee or assignees, to be appointed or chosen as
aforesaid, any lands, tenements, or hereditaments, which such bankrupt
shall be seised of, or entitled to, in fee tail, at law, or in equity, in
possession, remainder, or reversion, for the benefit of the creditors; and
all such deeds, being duly executed and recorded according to the laws
of the state within which such lands, tenements, or hereditaments may
be situate, shall be good and effectual against all persons whom the said
bankrupt, by common recovery, or other means, might or could bar of
any estate, right, title, or possibility of or in the said lands, tenements,
or hereditaments.
Sec. 12. And be it further enacted, That if any bankrupt shall have
conveyed or assured any lands, goods or estate, unto any person, upon
condition or power of redemption, by payment of money or otherwise, it
shall be lawful for the commissioners, or for any person by them duly
authorized for that purpose, by writing, under their hands and seals, to
make tender of money or other performance according to the nature of

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

such condition, as fully as the bankrupt might have done; and the com­
missioners, after such performance or tender, shall have power to assign
such lands, goods and estate, for the benefit of the creditors, as fully
and effectually as any other part of the estate of such bankrupt
Sec. 13. And be it further enacted, That the commissioners aforesaid
shall have power to assign, for the use aforesaid, all the debts due to
such bankrupt, or to any other person for his or her use or benefit;
which assignment shall vest the property and right thereof in the as­
signee or assignees of such bankrupt, as fully as if the bond, judgment,
contract, or claim, had originally belonged or been made to the said
assignees; and after the said assignment, neither the said bankrupt, nor
any person acting as trustee for him or her, shall have power to recover
or discharge the same, nor shall the same be attached as the debt of the
said bankrupt; but the assignee or assignees aforesaid shall have such
remedy to recover the same, in his or their own name or names, as such
bankrupt might or could have had, if no commission of bankruptcy had
issued. And when any action in the name of such bankrupt shall have
been commenced, and shall be pending for the recovery of any debt or
effects of such bankrupt, which shall be assigned, or shall, or might be­
come vested in the assignee or assignees of such bankrupt as aforesaid,
then such assignee or assignees may claim to be, and shall be thereupon
admitted to prosecute such action in his or their name, for the use and
benefit of the creditors of such bankrupt; and the same judgment shall
be rendered in such action, and all attachments or other security taken
therein, shall be in like manner holden and liable, as if the said action
had been originally commenced in the name of such assignee or as­
signees, after the original plaintiff therein had become a bankrupt as
aforesaid: Provided, that where a debtor shall have, bona fide, paid his
debt to any bankrupt, without notice that such person was bankrupt, he
or she shall not be liable to pay the same to the assignee or assignees.
Sec. 14. And be it further enacted, That if complaint shall be made
or information given to the commissioners, or if they shall have good
reason to believe or suspect, that any of the property, goods, chattels, or
debts, of the bankrupt, are in the possession of any other person, or that
any person is indebted to, or for the use of the bankrupt, then the said
commissioners shall have power to summon, or to cause to be sum­
moned, by their attorney or other person duly authorized by them, all
such persons before them, or the judge of the district where such person
shall reside, by such process, or other means, as they shall think con­
venient, and upon their appearance,toexaminethembyparoleorbyinter­
rogatories, in writing, on oath, or affirmation, which oath or affirmation
they are hereby empowered to administer, respecting the knowledge of
all such property, goods, chattels, and debts; and if such person shall
refuse to be sworn or affirmed, and to make answer to such questions or
interrogatories as shall be administered, and to subscribe the said an­
swers, or upon examination shall not declare the whole truth, touching
the subject matter of such examination, then it shall be lawful for the
commissioners, or judge, to commit such person to prison, there to be
detained until they shall submit themselves to be examined in manner
aforesaid, and they shall, moreover, forfeit double the value of all the
property, goods, chattels, and debts, by them concealed.
Sec. 15. And be it further enacted, That if any of the aforesaid
persons shall, after legal summons to appear before the commissioners
or judge, to be examined, refuse to attend, or shall not attend at the
time appointed, having no such impediment as shall be allowed of by
the commissioners or judge, it shall be lawful for the said commissioners
or judge to direct their warrants to such person or persons as by them
shall be thought proper, to apprehend such persons as shall refuse to ap­
pear, and to brine-them before the commissioners or judge, to be examined,
Voi,. II.—4 °
C

25

Effect of the
assignment of
debts, and mode
of recovery.

Mode of discovering con­
cealed property
or debts.

Mode of com­
pelling the at­
tendance of wit­
nesses.

SIXTH CONGRESS.

Sess. I. Cn. 19.

1800.

and upon their refusal to come, to commit them to prison, until they shall
submit themselves to be examined, according to the directions of this act:
Their com- Provided, that such witnesses as shall be so sent for, shall be allowed such
pensation.
compensation as the commissioners or judge shall think fit, to be rateably
Punishment of borne by the creditors; and if any person, other than the bankrupt, either
perjury and sub- by subornation of others, or by his or her own act, shall wilfully or coromation there- ruptJy commit perjury on such examination, to be taken before the comof
missioners as aforesaid, the party so offending, and all persons who shall
procure any person to commit such perjury, shall, on conviction thereof,
be fined, not exceeding four thousand dollars, and imprisoned, not ex­
ceeding two years, and moreover shall, in either case, be rendered inca­
pable of being a witness in any court of record.
Penalty on
Sec- 16farther enacted, That if any person or persons
making a fraud- shall fraudulently, or collusively claim any debts, or claim or detain any
Ulent claim.
reaj or personai estate of the bankrupt, every such person shall forfeit
double the value thereof, to and for the use of the creditors.
CommissionSec. 17. And be it farther enacted, That if any person, prior to his
era may assign or her becoming a bankrupt, shall convey to any of his or her children,
ulent'rt conv"d’ or other Persons> anJ’lands or goods> or transfer his or [her] debts or
edeiaway'°nTey" demands into other persons’ names, with intent to defraud his or her
creditors, the commissioners shall have power to assign the same, in as
effectual a manner as if the bankrupt had been actually seised or pos­
sessed thereof.
Duty of the
Sec. 18. And be it farther enacted, That if any person or persons
bankrupt to sur- who shall become bankrupt within the intent and meaning of this act,
andd<be h'exa-lf an<^ against whom a commission of bankruptcy shall be duly issued,
mined, &c.
upon which commission such person or persons shall be declared bank­
rupt, shall not, within forty-two days after notice thereof, in writing, to
be left at the usual place of abode of such person or persons, or personal
notice in case such person or persons be then in prison, and notice given
in some gazette, that such commission hath been issued, and of the time
and place of meeting of the commissioners, surrender him or herself to
the said commissioners, and sign or subscribe such surrender, and sub­
mit to be examined, from time to time, upon oath or solemn affirmation,
by and before such commissioners, and in all things conform to the pro­
visions of this act, and also upon such his or her examination, fully and
truly disclose and discover all his or her effects and estate, real and per­
sona], and how and in what manner, to whom and upon what consider­
ation, and at what time or times he or she hath disposed of, assigned or
transferred, any of his or her goods, wares, or merchandise, monies, or
other effects and estate, and of all books, papers and writings relating
thereunto, of which he or she was possessed, or in or to which he or she
was any ways interested or entitled, or which any person or persons shall
then have, or shall have had in trust for him or her, or for his or her use,
at any time before or after the issuing of the said commission, or whereby
such bankrupt, or his or her family then hath, or may have or expect any
profit, possibility of profit, benefit or advantage whatsoever, except only
such part of his or her estate and effects as shall have been really and
bona fide before sold and disposed of, in the way of his or her trade and
dealings, and except such sums of money as shall have been laid out in
the ordinary expenses of his or her family, and also upon such examina­
tion, execute in due form of law, such conveyance, assurance, and assign­
ment of his or her estate, whatsoever and wheresoever, as shall "be
devised and directed by the commissioners, to vest the same in the
assignees, their heirs, executors, administrators, and assigns for ever, in
trust, for the use of all and every the creditors of such bankrupt, who
shall come in and prove their debts under the commission; and deliver
up unto the commissioners, all such part of his or her the said bankrupt’s
goods, wares, merchandises, money, effects and estate, and all books,

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

papers, and writings relating thereunto, as at the time of such examination
shall be in his or her possession, custody or power, his or her necessary
wearing apparel, and the necessary wearing apparel of the wife and chil­
dren, and necessary beds and bedding, of such bankrupt only excepted,
then he or she the said bankrupt, upon the conviction of any wilful default,
or omission in any of the matters or things aforesaid, shall be adjudged a
fraudulent bankrupt, and shall suffer imprisonment for a term not less than
twelve months, nor exceeding ten years, and shall not, at any time after,
be entitled to the benefits of this act: Provided always, that in case any
bankrupt shall be in prison or custody at the time of issuing such commis­
sion, and is willing to surrender and submit to be examined, according to
the directions of this act, and can be brought before the said commission­
ers and creditors for that purpose, the expense thereof shall be paid out
of the said bankrupt’s effects, and in case such bankrupt is in execution, or
cannot be brought before the commissioners, that then the said commis­
sioners, or some one of them shall, from time to time, attend the said
bankrupt in prison or custody, and take his or her discovery as in other
eases, and the assignees, or one of them, or some person appointed by
them, shall attend such bankrupt in prison or custody, and produce his
or her books, papers and writings, in order to enable him or her to
prepare his or her discovery; a copy whereof the said assignees shall
apply for, and the said bankrupt shall deliver to them or their order,
within a reasonable time after the same shall have been required.
Sec. 19. And be it further enacted, That the said commissioners shall
appoint, within the said forty-two days, so limited as aforesaid, for the
bankrupt to surrender and conform as aforesaid, not less than three seve­
ral meetings for the purposes aforesaid, the third of which meetings shall
be o/i the last of the said forty-two days: Provided always, that the judge
of the district within which such commission issues, shall have power to
enlarge the time so limited as aforesaid, for the purposes aforesaid, as he
shall think fit, not exceeding fifty days, to be computed from the end of
the said forty-two days, so as such order for enlarging the time be made
at least six days before the expiration of said term.
Sec. 20. And be it further enacted, That it shall be lawful for the
commissioners, or any other person or officers, by them to be appointed,
by their warrant, under their hands and seals, to break open in the day
time the houses, chambers, shops, warehouses, doors, trunks, or chests,
of the bankrupt, where any of his or her goods or estate, deeds, books
of account or writings, shall be, and to take possession of the goods,
money, and other estate, deeds, books of account or writings of such
bankrupt.
Sec. 21. And be it further enacted, That if the bankrupt shall refuse
to be examined, or to answer fully, or to subscribe his or her examina­
tion as aforesaid, it shall be lawful for the commissioners to commit the
offender to close imprisonment, until he or she shall conform him or
herself; and if the said bankrupt shall submit to be examined, and upon
his or her examination, it shall appear that he or she hath committed
wilful or corrupt perjury, he or she may be indicted therefor, and being
thereof convicted, shall suffer imprisonment for a term not less than two
years, nor exceeding ten years.
Sec. 22. And be it further enacted, That every bankrupt, having
surrendered, shall, at all seasonable times before the expiration of the
said forty-two days, as aforesaid, or of such further time as shall be
allowed to finish his or her examination, be at liberty to inspect his or
her books and writings, in the presence of some person to be appointed
by the commissioners, and to bring with him or her, for his or her as­
sistance, such persons as he or she shall think fit, not exceeding two at
one time, and to make extracts and copies to enable him or her to
make a full discovery of his or her effects; and the said bankrupt shall

27

Mode of exa­
mination when
the bankrupt is
in prison.

Days of meet­
ing to be ap­
pointed within
the term limited
for the surren­
der, &c.
The term may
be enlarged.

Houses, doors,
&c. of the bank­
rupt may be
broken open.

Bankrupt may
be committed
for refusal to be
examined, &c.
Punishment
of his perjury.

To have ac­
cess to his
books and writ­
ings.

28

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

To be free be free from arrests, in coming to surrender, and after having surren­
from arrest in dered to the said commissioners, for the said forty-two days, or such
coming to sur­
farther time as shall be allowed for the finishing his or her examination;
render, &c.

Penalty on
concealing a
bankrupt.

Bankrupt’s
wife may be ex­
amined.

Cause ofcom­
mitment to be
expressed in the
commissioners’
warrant.

Bounty for
discovering
bankrupt’s es­
tate.

Penalty on
trustees con­
cealing his pro­
perty.

Goods of which
the bankrupt is
the reputed
owner, may be
assigned.

Penalty on the
person suing out
a commission,
receiving an un­
due satisfaction
from the bank­
rupt. Proceed­
ings thereon.

and in case such bankrupt shall be arrested for debt, or taken on any
escape warrant or execution, coming to surrender, or after his surren­
der within the time before mentioned, then on producing such summons
or notice under the hand of the commissioners, and giving the officer a
copy thereof, he or she shall be discharged; and in case any officer shall
afterwards detain such bankrupt, such officer shall forfeit to such bank­
rupt for his or her own use, ten dollars for every day he shall detain the
bankrupt.
Sec. 23. And be it further enacted, That every person who shall
knowingly or wilfully receive or keep concealed any bankrupt, so as
aforesaid summoned to appear, or who shall assist such bankrupt in
concealing him or herself, or in absconding, shall suffer such imprison­
ment, not exceeding twelve months, or pay such fine to the United
States, not exceeding one thousand dollars, as upon conviction thereof
shall be adjudged.
Sec. 24. And be it further enacted, That the said commissioners shall
have power to examine, upon oath or affirmation, the wife of any person
lawfully declared a bankrupt, for the discovery of such part of his estate
as may be concealed or disposed of by such wife, or by any other per­
son ; and the said wife shall incur such penalties for not appearing
before the said commissioners, or refusing to be sworn or affirmed, or
examined, and to subscribe her examination, or for not disclosing the
truth, as by this act is provided against any other person in like cases.
Sec. 25. And be it further enacted, That in case any person shall
be committed by the commissioners for refusing to answer, or for not
fully answering any question, or for any other cause, the commis­
sioners shall, in their warrant, specify such question or other cause of
commitment.
Sec. 26. And be it further enacted, That if after the bankrupt shall
have finished his or her final examination, any other person or persons
shall voluntarily make discovery of any part of such bankrupt’s estate,
before unknown to the commissioners, such person or persons shall be
entitled to five per cent, out of the effects so discovered, and such fur­
ther reward as the commissioners shall think proper; and any trustee
having notice of the bankruptcy, wilfully concealing the estate of any
bankrupt, for the space of ten days after the bankrupt shall have fin­
ished his final examination, as aforesaid, shall forfeit double the value of
the estate so concealed, for the benefit of the creditors.
Sec. 27. And be it further enacted, That if any person shall become
bankrupt, and at such time, by consent of the owner, have in his or her
possession and disposition, any goods whereof he or she shall be reputed
owner, and take upon him or herself, the sale, alteration, or disposition
thereof, as owner, the commissioners shall have, power to assign the
same, for the benefit of the creditors, as fully as any other part of the
estate of the bankrupt.
Sec. 28. And be it further enacted, That if any bankrupt, after the
issuing any commission against him or her, pay to the person who sued
out the same, or give or deliver to such person, goods or any other satis­
faction or security for his or her debt, whereby such person shall pri­
vately have and receive a greater proportion of his or her debt than the
other creditors, such preference shall be a new act of bankruptcy, and
on good proof thereof, such commission shall and may be superseded,
and it shall and may be lawful for either of the judges, having authority
to grant the commission as aforesaid, to award any creditor petitioning
another commission, and such person, so taking such undue satisfaction
as aforesaid, shall forfeit and lose, as well his or her whole debts, as the

SIX'L'H CONGRESS.

Sess. I. Ch. 19.

1800.

29

whole he or she shall have taken and received, and shall pay back, or
deliver up the same, or the full value thereof, to the assignee or assignees
who shall be appointed or chosen under such commission, in manner
aforesaid, in trust for, and to be divided among the other creditors of
the said bankrupt, in proportion to their respective debts.
Sec. 29. And be it further enacted, That every person who shall be
Notice of a
chosen assignee of the estate and effects of a bankrupt, shall, at some dividend.
time after the expiration of four months, and within twelve months from
the time of issuing the commission, cause at least thirty days public
notice to be given, of the time and place the commissioners and as­
signees intend to meet, to make a dividend or distribution of the bank­
rupt’s estate and effects; at which time the creditors who have not before
proved their debts, shall be at liberty to prove the same; and upon every
such meeting, the assignee or assignees shall produce to the commis­ Mode ofmak­
sioners and creditors then present, fair and just accounts of all his or ing the first di­
their receipts and payments, touching the bankrupt’s estate and effects, vidend.
and of what shall remain outstanding, and the particulars thereof, and
shall, if the creditors then present, or a major part of them, require the
same, be examined upon oath or solemn affirmation, before the same
commissioners, touching the truth of such accounts; and in such
accounts, the said assignee or assignees shall be allowed and retain all
such sum and sums of money, as they shall have paid or expended in
suing out and prosecuting the commission, and all other just allowances
on account of, or by reason or means of their being assignee or as­
signees; and the said commissioners shall order such part of the nett
produce of the said bankrupt’s estate, as by such accounts or otherwise
shall appear to be in the hands of the said assignees, as they shall think
fit, to be forthwith divided among such of the bankrupt’s creditors as
have duly proved their debts under such commission, in proportion to
their several and respective debts; and the commissioners shall make
such their order for a dividend in writing, under their hands, and shall
cause one part of such order to be filed amongst the proceedings under
the said commission, and shall deliver unto each of the assignees under
such commission, a duplicate of such their order, which order of distri­
bution shall contain an account of the time and place of making such
order, and the sum total or quantum of all the debts proved under the
commission, and the sum total of the money remaining in the hands of
the assignee or assignees to be divided, and how many per cent, in par­
ticular is there ordered to be paid to every creditor of his debt; and the
said assignee or assignees in pursuance of such order, and without any
deed or deeds of distribution, to be made for the purpose, shall forthwith
make such dividend and distribution accordingly, and shall take receipts
in a book to be kept for the purpose, from each creditor, for the part or
share of such dividend or distribution, which he or they shall make, and
pay to each creditor respectively; and such order and receipt shall be a
full and effectual discharge to such assignee for so much as he shall
fairly pay, pursuant to such order as aforesaid.
Sec. 30. And be it further enacted, That within eighteen months
Second and
next after the issuing of the commission, the assignee or assignees shall subsequent di­
vidends.
make a second dividend of the bankrupt’s estate and effects, in case the
same were not wholly divided upon the first dividend, and shall cause
due public notice to be given of the time and place the said commis­
sioners intend to meet, to make a second distribution of the bankrupt’s
estate and effects, and for the creditors who shall not before have proved
their debts, to come in and prove the same; and at such meeting, the
said assignees shall produce, on oath or solemn affirmation as aforesaid,
their accounts of the bankrupt’s estate and effects, and what, upon the
balance thereof, shall appear to be in their hands, shall by like order of
the commissioners, be forthwith divided amongst such of the bankrupt’s

30

Bankrupt’s es.
tate to be pro.
portionally di­
vided without
regard to cre­
ditors’ security.

Assignees
shall keep books
ofaccount open
to the creditors’
inspection.

Bankrupt
bound to attend
the assignees
when required.

Allowance to
the bankrupt
out of his estate.

He shall be
discharged from
all debts which
might be proved
under the com­
mission.

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

creditors as shall have made due proof of their debts, in proportion to
their several and respective debts; which second dividend shall be final,
unless any suit at law, or equity, be depending, or any part of the estate
standing out, that could not have been disposed of, or that the major
part of the creditors shall not have agreed to be sold or disposed of, or
unless some other or future estate or effects of the bankrupt shall after­
wards come to, or rest in the said assignees, in which cases the said
assignees shall, as soon as may be, convert such future or other estate
and effects into money, and shall, within two months after the same be
converted into money, by like order of the commissioners, divide the
same among such bankrupt’s creditors as shall have made due proof of
their debt under such commission.
Sec. 31. And be it further enacted, That in the distribution of the
bankrupt’s efFects, there shall be paid to every of the creditors a portionrate, according to the amount of their respective debts, so that every
creditor having security for his debt by judgment, statute, recognizance,
or specialty, or having an attachment under any of the laws of the
individual states, or of the United States, on the estate of such bank­
rupt, {Provided, there be no execution executed upon any of the real
or personal estate of such bankrupt, before the time he or she became
bankrupts) shall not be relieved upon any such judgment, statute, recogni­
zance, specialty, or attachment, for more than a rateable part of his
debt, with the other creditors of the bankrupt.
Sec. 32. And be it further enacted, That the assignees shall keep
one or more distinct book or books of account, wherein he or they shall
duly enter all sums of money or effects, which he or they shall have re­
ceived, or got into his or their possession, of the said bankrupt’s estate,
to which books of account, every creditor who shall have proved his or
her debt, shall, at all reasonable times, have free resort, and inspect the
same as often as he or she shall think fit.
Sec. 33. And be it. further enacted, That every bankrupt, not being
in prison or custody, shall, at all times after his surrender, be bound to
attend the assignees, upon every reasonable notice, in writing, for that
purpose, given or left at the usual place of his or her abode, in order to
assist in making out the accounts of the said bankrupt’s estate and effects,
and to attend any court of record, to be examined touching the same,
or such other business, as the said assignees shall judge necessary, for
which he shall receive three dollars per day.
Sec. 34. And be it further enacted, That all and every person and
persons who shall become bankrupt as aforesaid, and who shall, within
the time limited by this act, surrender him or herself to the commis­
sioners, and in all things conform as in and by this act is directed, shall
be allowed five per cent, upon the nett produce of all the estate that
shall be recovered in and received, which shall be paid unto him or her
by the assignee or assignees, in case the nett produce of such estate,
after such allowance made, shall be sufficient to pay the creditors of
said bankrupt, who shall have proved their debts under such commission,
the amount of fifty per cent, on their said debts, respectively, and so as
the said five per cent, shall not exceed, in the whole, the sum of five
hundred dollars; and in case the nett produce of the said estate shall,
over and above the allowance hereafter mentioned, be sufficient to pay
the said creditors seventy-five per cent, on the amount of their said debts,
respectively, that then the said bankrupt shall be allowed ten per cent,
on the amount of such nett produce, to be paid as aforesaid, so as such
ten per cent, shall not, in the whole, exceed the sum of eight hundred
dollars; and every such bankrupt shall be discharged from all debts by
him or her due or owing, at the time he or she became bankrupt, and
all which were or might have been proved under the said commission ;
knd in case any such bankrupt shall afterwards be arrested, prosecuted

SIXTH CONGRESS.

Sess. I. Ch. 10.

1800.

or impleaded, for or on account of any of the said debts, such bankrupt
may appear without bail, and may plead the general issue, and give this
act, and the special matter in evidence. And the certificate of such
bankrupt’s conforming, and the allowance thereof, according to the direc­
tions ot this act, shall be, and shall be allowed to be, sufficient evidence,
prima facie, of the party’s being a bankrupt within the meaning of this
act, and of the commission and other proceedings precedent to the
obtaining such certificate, and a verdict shall thereupon pass for the
defendant, unless the plaintiff in such action can prove the said certifi­
cate was obtained unfairly, and by fraud, or unless he can make appear
any concealment of estate or effects, by such bankrupt to the value of
one hundred dollars. Provided, That no such discharge of a bankrupt,
shall release or discharge any person who was a partner with such bank­
rupt, at the time he or she became bankrupt, or who was then jointly
held or bound with such bankrupt for the same debt or debts from which
such bankrupt was discharged as aforesaid.
Sec. 35. Provided always, and be it further enacted, That if the nett
proceeds of the bankrupt’s estate, so to be discovered, recovered and
received, shall not amount to so much as will pay all and every of the
creditors of the said bankrupt, who shall have proved their debts under
the said commission, the amount of fifty per cent, on their debts respec­
tively, after all charges first deducted, that then, and in such case, the
bankrupt shall not be allowed five per centum on such estate as shall
be recovered in, but shall have and be paid by the assignees so much
money as the commissioners shall think fit to allow, not more than three
hundred dollars, nor exceeding three per centum on the nett proceeds
of the said bankrupt’s estate.
Sec. 36. Provided also, and be it further enacted, That no person
becoming a bankrupt according to the intent and provisions of this act,
shall be entitled to a certificate of discharge, or to any of the benefits of
the act, unless the commissioners shall certify under their hands, to the
judge of the district within which such commission issues, that such
bankrupt hath made a full discovery of his or her estate and effects, and
in all things conformed him or herself to the directions of this act, and
that there doth not appear to them any reason to doubt of the truth of
such discovery, or that the same was not a full discovery of the said
bankrupt’s estate and effects; or unless the said judge should be of
opinion that the said certificate was unreasonably denied by the com­
missioners ; and unless two thirds, in number and in value, of the cre­
ditors of the bankrupt, who shall be creditors for not less than fifty dol­
lars respectively, and who shall have duly proved their debts under the
said commission, shall sign such certificate to the judge, and testify
their consent to the allowance of a certificate of discharge, in pursu­
ance of this act; which signing and consent shall be also certified by
the commissioners; but the said commissioners shall not certify the
same till they have proof by affidavit or affirmation, in writing, of such
creditors, or of the persons respectively authorized for that purpose,
signing the said certificate ; which affidavit or affirmation, together with
the letter or power of attorney to sign, shall be laid before the judge of
the district within which such commission issues, in order for the allow­
ing the certificate of discharge, and the said certificate shall not be
allowed unless the bankrupt make oath or affirmation in writing, that
the certificate of the commissioners, and consent of the creditors there­
unto were obtained fairly and without fraud; and any of the creditors
of the said bankrupt are allowed to be heard, if they shall think fit, before
the respective persons aforesaid, against the making or allowing of such
certificates by the commissioners or judge.
Sec. 37. And be it further enacted, That if any creditor, or pretended
creditor, of anv bankrupt, shall exhibit to the commissioners any ficti-

31

If the bank­
rupt’s estate
does not pay
half his debts,
what allowance
he shall have.

A certificate
of discharge
may be neces­
sary, and how
it is to be ob­
tained.

For what mis.
conduct of the

32

SIXTH CONGRESS.

Sess. I. Cn. 19.

1800.

tious or false debt, or demand, with intent to defraud the real creditors
bankrupt, he
shall lose his of such bankrupt, and the bankrupt shall refuse to make discovery there­
right to a certi­ of, and suffer the fair creditors to be imposed upon, be shall lose all title
ficate, &c.

Bankrupt, if
arrested, may
be discharged
on an habeas
corpus.

Persons whose
debts are due at
a future day
may prove them.

Obligees of
certain bonds,
and the assured
in a policy of
insurance may
claim under (he
commission,

&c.

Proceedings
on habeas cor­
pus, brought by
a person com­
mitted by the
commissioners.

Penalty on the
gaoler suffering
such person to
go at large.

Prisoner to be
produced by the
gaoler on de.
mand of a cre­
ditor.

to the allowance upon the amount of his effects, and to a certificate of
discharge as aforesaid, nor shall he be entitled to the said allowance or
certificate, if he has lost, at any one time fifty dollars, or in the whole
three hundred dollars, after the passing of this act, and within twelve
months before he became a bankrupt, by any manner of gaming or wa­
gering whatever.
Sec. 38. And be it further enacted, That if any bankrupt, who shall
have obtained his certificate, shall be taken in execution or detained in
prison, on account of any debts owing before he became a bankrupt, by
reason that judgment was obtained before such certificate was allowed,
it shall be lawful for any of the judges of the court wherein judgment
was so obtained, or for any court, judge, or justice, within the district in
which such bankrupt shall be detained, having powers to award or allow
the writ of habeas corpus, on such bankrupt producing his certificate so
as aforesaid allowed, to order any sheriff or gaoler who shall have such
bankrupt in custody, to discharge such bankrupt without fee or charge,
first giving reasonable notice to the plaintiff, or his attorney, of the mo­
tion for such discharge.
Sec. 39. And be it further enacted, That every person who shall have
bona fide given credit to or taken securities, payable at future days, from
persons who are or shall become bankrupts, not due at the time of such
persons becoming bankrupt, shall be admitted to prove their debts and
contracts, as if they were payable presently, and shall have a dividend in
proportion to the other creditors, discounting, where no interest is pay­
able, at the rate of so much per centum per annum, as is equal to the
lawful interest of the state where the debt was payable; and the obligee
of any bottomry or respondentia bond, and the assured in any policy of
insurance, shall be admitted to claim, and after the contingency or loss,
to prove the debt thereon, in like manner as if the same had happened
before issuing the commission; and the bankrupt shall be discharged
from such securities, as if such money had been due and payable before
the time of his or her becoming bankrupt; and such creditors may peti­
tion for a commission, or join in petitioning.
Sec. 40. And be it further enacted, That in case any person, com­
mitted by the commissioners’ warrant, shall obtain a habeas corpus, in
order to be dischargedj and there shall appear any insufficiency in the
form of the warrant, it shall be lawful for the court or judge before whom
such party shall be brought by habeas corpus, by rule or warrant, to com­
mit such persons to the same prison, there to remain until he shall con­
form as aforesaid, unless it shall be made to appear that he had fully
answered all lawful questions put to him by the commissioners; or in
case such person was committed for not signing his examination, unless
it shall appear that the party had good reason for refusing to sign the
same, or that the commissioners had exceeded their authority in making
such commitment; and in case the gaoler to whom such person shall be
committed, shall wilfully or negligently suffer such person to escape, or
go without the doors or walls of the prison, such gaoler shall, for such
offence, being convicted thereof, forfeit a sum not exceeding three thou­
sand dollars for the use of the creditors.
Sec. 41. And be it further enacted, That the gaoler shall, upon the
request of any creditor, having proved his debt, and showing a certifi­
cate thereof, under the hands of the commissioners, which the commis­
sioners shall give without fee or reward, produce the person so com­
mitted ; and in case such gaoler shall refuse to show such person to such
creditor, requesting the same, such person shall be considered as having
escaped, and the gaoler or sheriff so refusing, shall be liable as for a wil­
ful escape.

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

Sec. 42. And be it further enacted, That where it shall appear to the
said commissioners that there hath been mutual credit given by the bank­
rupt, and any other person, or mutual debts between them at any time
before such person became bankrupt, the assignee or assignees of the
estate shall state the account between them, and one debt may be set off
against the other, and what shall appear to be due on either side on the
balance of such account after such set off, and no more, shall be claimed
or paid on either side respectively.
Sec. 43. And be it further enacted, That it shall and may be lawful
to and for the assignee or assignees of any bankrupt’s estate and effects,
under the direction of the commissioners, and by and with the consent
of the major part in value of such of the said bankrupt’s creditors, as
shall have duly proved their debts under the commission, and shall be
present at any meeting of the said creditors, to be held in pursuance of
due and public notice for that purpose given, to submit any difference
or dispute for, on account of, or by reason or means of, any matter,
cause, or thing whatsoever, relating to such bankrupt, or to his or her
estate or effects, to the final end and determination of arbitrators to be
chosen by the said commissioners, and the major part in value of such
creditors as shall be present at such meeting as aforesaid, and the party
or parties with whom they shall have such difference or dispute, and to
perform the award of such arbitrators, or otherwise to compound and
agree the matter in difference and dispute as aforesaid, in such manner
as the said assignee or assignees under the direction and with the con­
sent aforesaid, shall think fit and can agree; and the same shall be bind­
ing on the several creditors of the said bankrupt, and the said assignee
or assignees are hereby indemnified for what they shall fairly do, accord­
ing to the directions aforesaid.
Sec. 44. And be it further enacted, That the assignees shall be, and
hereby are vested with full power to dispose of all the bankrupt’s estate,
real and personal, at public auction or vendue, without being subject to
any tax, duty, imposition, or restriction, any law to the contrary not­
withstanding.
Sec. 45. And be it further enacted, That if after any commission of
bankruptcy, sued forth, the bankrupt happen to die before the commis­
sioners shall have distributed the effects, or any part thereof, the com­
missioners shall, nevertheless, proceed to execute the commission, as
fully as they might have done if the party were living.
Sec. 46. And be it further enacted, That where any commission of
bankruptcy shall be delivered to the commissioners, therein named, to
be executed, it shall and may be lawful for them before they take the
oath or affirmation of qualification, to demand and take from the creditor
or creditors prosecuting such commission, a bond with one good security,
if required, in the penalty of one thousand dollars, conditioned for the
payment of the costs, charges, and expenses, which shall arise and accrue
upon the prosecution of the said commission: Provided always, that
the expenses, so as aforesaid to be secured and paid by the petitioning
creditor or creditors, shall be repaid to him or them by the commission­
ers or assignees, out of the first monies arising from the bankrupt’s
estate or effects, if so much be received therefrom.
Sec. 47. And be it further enacted, That the district judges, in each
district respectively, shall fix a rate of allowance to be made to the
commissioners of bankruptcy, as compensation of services to be ren­
dered under the commission, and it shall be lawful for any creditor, by
petition to the district judge, to except to any charge contained in the
account of the commissioners: and the said judge, after hearing the
commissioners, may in a summary way decide upon the validity of such
exception.
Sec. 48. And be it further enacted, That all penalties given by this
Vol. II.—5

83
Offsets to be
allowed.

Assignees may
with consent of
the commission­
ers, &c. agree to
a reference or
compromise.

Bankrupt’s es­
tate maybe dis­
posed of at pub­
lic auction,
without paying
duty, &c.
What is to be
done if the
bankrupt die,
pending the
proceedings.

Commission­
ers may demand
security for the
expenses of the
commission.

District judge
to fix the com­
pensation to the
commissioners.

84

SIXTH CONGRESS.

Sess. I. Ch. 19.

1800.

Penalties how act for the benefit of the creditors, shall be recovered by the assignee or
recovered and assignees by action of debt, and the money so recovered, the charges of
appropriated.
guit being
shall be distributed towards payment of the creditors.
General issue
Sec. 49. And be it further enacted, That if any action shall be
and double
brought against any commissioner, or assignee, or other person, having
for ‘Uendante authority under the commission, for any thing done or performed by
•Who acted un. force of this act, the defendant may plead the general issue, and give
derthecommis- this act and the special matter in evidence; and in case of a nonsuit,

discontinuance, or verdict or judgment for him, he shall recover double
costs.
Property comSec. 50. And be it further enacted, That if any estate real or pering to the bank- sonal shall descend, revert to, or become vested in any person, after he
obt^naea°ceerde or s,ie shall be deolared a bankrupt, and before he or she shall obtain a
ficate”’ to °be *' certificate, signed by the judge as aforesaid, all such estate shall, by
vested in the virtue of this act, be vested in the said commissioners, and shall be by
commissioners. them ass;gnej and conveyed to the assignee or assignees in fee simple,
or otherwise, in like manner as above directed, with the estate of the
said bankrupt, at the time of the bankruptcy, and the proceeds thereof
shall be divided among the creditors.
Proceedings
Sec. 51. And be it further enacted, That the said commissioners
sioners C°t?mb<i sbab, once ’n every year, carefully file, in the clerk’s office of the
fileTin the of district court, all the proceedings had in every case before them, and
fice of the clerk which shall have been finished, including the commissions, examinations,
of the district, d;v;dendS) entries, and other determinations of the said commissioners,
in which office, the final certificate of the said bankrupt may also be
recorded; all which proceedings shall remain of record in the said
office, and certified copies thereof shall be admitted as evidence in all
courts, in like manner as the copies of the proceedings of the said district
court are admitted in other cases.
Creditors may
Sec. 52. And be it further enacted, That it shall and may be'lawful
minahonsof the ^or any creditor
sucb bankrupt, to attend all or any of the examinabankrupt and tions of said bankrupt, and the allowance of the final certificate, if he
the allowance shall think proper, and then and there to propose interrogatories, to be
cate*116 certlfi' put by the judge or commissioners to the said bankrupt and others, and
also to produce and examine witnesses and documents before such judge
or commissioners, relative to the subject matter before them. And in
case either the bankrupt or creditor shall think him or herself aggrieved
by the determination of the said judge or commissioners, relative to
T"i,al 'i?
any material fact, iu the commencement or progress of the said proceedrelation to cer- *nSs> or ’n the allowance of the certificate aforesaid, it shall and may be
tain facts.
lawful for either party to petition the said judge, setting forth such facts
and the determination thereon, with the complaint of the party, and a
prayer for trial by a jury to determine the same, and the said judge
shall, in his discretion, make order thereon, and award a venire facias to
the marshal of the district, returnable within fifteen days before him, for
the trial of the facts mentioned in the said petition, notice whereof shall
be given to the commissioners and creditors concerned in the same; at
which time the said trial shall be had, unless, on good cause shown, the
judge shall give farther time, and judgment being entered on the verdict
of the jury, shall be final, on the said facts, and the judge or commis­
sioners shall proceed agreeably thereto.
t0
Sec.
be it further enacted, That the commissioners before
pending thT’ tbe appointment of assignees, and the assignees after such appointment,
proceedings.
May, from time to time, make such allowance out of the bankrupt’s
estate until he shall have obtained his final discharge, as in their opinion
may be requisite for the necessary support of the said bankrupt and his
family.
directd'whS re^
®EC& further enacted, That it shall be lawful for the
irec w ere
major part ;n value of
creditors, before they, proceed to the choice
910D-

SIXTH CONGRESS.

Sess. L Ch. 19.

1800.

of assignees, to direct in .what manner, with whom, and where the
monies arising by, and to be received from time to time out of the bank­
rupt’s estate, shall be lodged, until the same shall be divided among the
creditors, as herein provided; to which direction every such assignee
and assignees shall conform as often as three hundred dollars shall be
received.
Sec. 55. And be it further enacted, That every matter and thing by
this act, required to be done by the commissioners of any bankrupt,
shall be valid to all intents and purposes, if performed by a majority of
them.
Sec. 56. And be it further enacted, That in all cases where the as­
signees shall prosecute any debtor of the bankrupt for any debt, duty or
demand, the commission, or a certified copy thereof, and the assignment
of the commissioners of the bankrupt’s estate, shall be conclusive evi­
dence of the issuing the commission, and of the person named therein,
being a trader and bankrupt, at the time mentioned therein.
Sec. 57. And be it further enacted, That every person obtaining a
discharge from his debts, by certificate as aforesaid, granted under a
commission of bankruptcy, shall not, on any future commission, be en­
titled to any other certificate than a discharge of his person only; unless
the nett proceeds of the estate and effects of such person so becoming
bankrupt a second time, shall be sufficient to pay seventy-five per cent,
to his or her creditors on the amount of their debts respectively.
Sec. 58. And be it further enacted, That any creditor of a person,
against whom a commission of bankruptcy shall have been sued forth,
and who shall lay his claim before the commissioners appointed in pur­
suance of this act, may at the same time declare his unwillingness to
submit the same to the judgment of the said commissioners, and his
wish that a jury may be impanneled to decide thereon: And in like
manner the assignee or assignees of such bankrupt may object to the
consideration of any particular claim by the commissioners, and require
that the same should be referred to a jury. In either case, such objection
and request shall be entered on the books of the commissioners, and
thereupon an issue shall be made up between the parties, and a jury
shall be impanneled, as in other cases, to try the same in the circuit
court for the district in which such bankrupt has usually resided. The
verdict of such jury shall be subject to the control of the court, as in
suits originally instituted in the said court, and when rendered, if not
set aside by the court, shall be certified to the commissioners, and shall
ascertain the amount of any such claim, and such creditor or creditors
shall be considered in all respects as having proved their debts under
the commission.
Sec. 59. And be it further enacted, That the lands and effects of any
person becoming bankrupt may be sold on such credit, and on such se­
curity, as a major part in value of the creditors may direct: Provided,
nothing herein contained shall be allowed so to operate, as to retard the
granting the bankrupt’s certificate.
Sec. 60. And be it further enacted, That if any person becoming
bankrupt, shall be in prison, it shall be lawful for any creditor or credi­
tors, at whose suit he or she shall be in execution, to discharge him or
her from custody, or if such creditor or creditors shall refuse to do so,
the prisoner may petition the commissioners, to liberate him or her, and
thereupon, if, in the opinion of the commissioners, the conduct of such
bankrupt shall have been fair, so as to entitle him or her in their opi­
nion, to a certificate, when by law such certificate might be given, it
shall be lawful for them to direct the discharge of such prisoner, and to
enter the same in their books, which being notified to the keeper of the
gaol in which such prisoner may he confined, shall be a sufficient author
j-ity for bis or her discharge: Provided, that in either case, such dis-

35
the money shall
be deposited.

Majority of
the commis­
sioners may act.

The commis­
sion shall be
evidence of the
party being a
bankrupt, &c.

Effect of a dis­
charge under a
second commis­
sion.

Claims of cre­
ditors may be
tried by jury.

Bankrupt’s
estate may be
sold on credit.

Creditors or
commissioners
may release the
bankrupt from
prison, and the
former may is­
sue a new exe­
cution if he
does not obtain
a discharge.

36

How far this
act shall alfect
the insolvent
laws of the
states.

Saving of the
rights of the U.
States and of
each state as to
their debts.

Saving of ex.
isting liens.

Limitation of
this act.

SIXTH CONGRESS.

Sess. I. Ch. 21, 22.

1800.

charge shall be no bar to another execution, if a certificate shall he
refused to such bankrupt: And provided also, that it shall be no bar to
a subsequent imprisonment of such bankrupt by order of the commis­
sioners, in conformity with the provisions of this act.
Sec. 61. And be it further enacted, That this act shall not repeal or
annul, or be construed to repeal or annul the laws of any state now in
force,’ or which may be hereafter enacted, for the relief of insolvent
debtors, except so far as the same may respect persons, who are, or may
be clearly within the purview of this act, and whose debts shall amount
in the cases specified in the second section thereof to the sums therein
mentioned. And if any person within the purview of this act, shall be
imprisoned for the space of three months, for any debt, or upon any con­
tract, unless the creditors of such prisoner shall proceed to prosecute a
commission of bankruptcy against him or her, agreeably to the provi­
sions of this act, such debtor may and shall be entitled to relief, under
any such laws for the relief of insolvent debtors, this act notwithstanding.
Sec. 62. And be it further enacted, That nothing contained in this
law shall, in any manner, effect the right of preference to prior satisfac­
tion of debts due to the United States as secured or provided by any
law heretofore passed, nor shall be construed to lessen or impair any
right to, or security for, money due to the United States or to any of
them.
Sec. 63. And be it further enacted, That nothing contained in this
act, shall be taken, or construed to invalidate, or impair any lien existing
at the date of this act, upon the lands or chattels of any person who may
have become a bankrupt.
Sec. 64. And be it further enacted, That this act shall continue in
force during the term of five years, and from thence to the end of the
next session of Congress thereafter, and no longer: Provided, that the
expiration of this act shall not prevent the complete execution of any
commission which may have been previously thereto issued.
Approved, April 4, 1800.

Statute I.
April 6, 1800.

Repealed by
Act of Nov. 25,
1803, ch. 5.

Vol. i. 627.

Chap. XXI.—An Act to allow a drawback of duties on goods exported to New
Orleans, and therein to amend the act intituled “An act to regulate the collection
of duties on imports and tonnage.'"

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That any goods, wares
or merchandise, which shall be exported from the United States, after
the tenth day of April current, in the manner prescribed by law, to the
port of New Orleans, on the river Mississippi, shall be deemed and
taken to be entitled to such drawbacks of duties as would be allowable
thereon, when exported to any other foreign port or place, any thing in
the act intituled “ Au act to regulate the collection of duties on imports
and tonnage,” to the contrary hereof notwithstanding.
Approved, April 5, 1800.

Statute I.
April 12,1800.
[Obsolete.]
Act of Feb.
16, 1792, cj). 6.
Act of June 19,
1813, ch. 2.
Continuation
of the act for
ten years.

VnfV-XXU-—An Act to continue in force “An act concerning certain fisheries if
i jStates, and for the regulation and government of the fishermen employed therein” and for other purposes as therein mentioned.

Section 1. Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That the act
intituled “An act concerning certain fisheries of the United States, and
k
r®gulat*on an0 government of the fishermen employed therein,”
shall be in force, and is hereby continued for the term often years, from
the third day of March, one thousand eight hundred, and until the end