by the first section of this act: Provided, that no such vessel or goods shall be adjudged to be restored to such former owner or owners, in any case where the same shall have been, before the recapture thereof, condemned as prize by competent authority, nor in any case where by the law or usage of the prince, government, or state, within whose territory such former owner or owners shall be resident as aforesaid, the vessel or goods of a citizen of the United States, under like circumstances of recapture, would not be restored to such citizen of the United States: Provided also, that nothing herein shall be construed to contravene or alter the terms of restoration in cases of recapture, which are or shall be agreed on in any treaty between the United States, and any foreign prince, government or state. may SEC. 4. And be it further enacted, That all sums of money which be paid for salvage, as aforesaid, when accruing to any public armed vessel, shall be divided to and among the commanders, officers and crew thereof, in such proportions as are or may be provided by law, respecting the distribution of prize money: and when accruing to any private armed vessel, shall be distributed to and among the owners and company concerned in such recapture, according to their agreements, if any such there be; and in case there be no such agreement, then to and among such persons, and in such proportions, as the court having jurisdiction thereof shall appoint. SEC. 5. And be it further enacted, That such parts of any acts of Congress of the United States, as respect the salvage to be allowed in cases of recapture, shall be, and are hereby repealed, except as to cases of recapture made before the passing of this act. APPROVED, March 3, 1800. CHAP. XV.—An Act declaring the assent of Congress to certain ucts of the Slates of Maryland and Georgia. SECTION 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the consent of Congress be, and hereby is granted to the operation of an act of the General Assembly of the state of Maryland, passed on the twentysixth day of December, one thousand seven hundred and ninety-one, entitled "An act empowering the wardens of the port of Baltimore to levy and collect the duty therein mentioned," and also to so much of an act of the state of Georgia, passed February the tenth, one thousand seven hundred and eighty-seven, entitled "An act for regulating the trade, laying duties on all goods, wares, liquors, merchandise and negroes imported into this state; and also an impost on the tonnage of shipping, and for other purposes therein mentioned," as authorizes a duty of three pence per ton on all shipping entering the port of Savannah, to be set apart as a fund for clearing the river Savannah. SEC. 2. And be it further enacted, That this act shall be, and continue in force until the third day of March, one thousand eight hundred and eight, and no longer. APPROVED, March 17, 1800. CHAP. XVI.—An Act to alter the times of holding the District Court in North SECTION 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the sessions of the district court for the district of North Carolina, shall hereafter be holden on the first Monday in February, May, August and November annually. SEC. 2. And be it further enacted, That all process which shall have been issued, and all recognizances returnable, and all suits and STATUTE I. CHAP. XVIII.—An Act to extend the privilege of franking letters and packages April 3, 1800. to Martha Washington. 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. CHAP. XIX.-An Act to establish an uniform System of Bankruptcy throughout the United States. (a) SECTION 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That from STATUTE I. April 4, 1800. Repealed by Act of Dec. 19, 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 Dall. 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 may be 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 exhausted. 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 preference, 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. Harrison 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. lbid. 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. v. 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 v. Murgatroyd, 1 Wash. C. C. R. 13. Who may be a bankrupt. and after the first day of June next, if any merchant, or other person, residing within the United States, actually using the trade of merchandise, 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 promise to pay, and the certificates a bar. Ibid. In an action brought against the owner of a 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 Dall. 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. Rep. 302. Wood v. Owings, 1 Cranch, 239; 1 Cond. 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. Golden 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. 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. v. 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, does 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' C. C. R. 16. 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 commission; 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. Assignces 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 bankruptcy, 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 pays 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 insolvent, 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 claimed to have a preference and priority over the general 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 of the defendants to the amount which came into the hands of B., as the assignees of S., the visions of the law do not extend to the surety who has paid the bond, the same rights and privileges. proPollock v. Pratt & Harvey, 2 Wash. C. C. R. 490. 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. married one of the grandchildren, and, before the death of C. S., B. became bankrupt. B. and wife, after the decease of C. S., sold the property claimed under the will of A. H,, and the plaintiff claimed What shall be ruptcy. with intent unlawfully to delay or defraud his or her creditors, depart from the state in which such person usually resides, or remain absent an act of banktherefrom, 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 execution, 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 petition be not preferred, in manner herein after directed, within six months after the act of bankruptcy committed. Proceedings to obtain a commission of bank. 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 ruptcy. 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 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 entitled 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 bankrupt, 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 construction 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. Commission ers to take an oath, and the mode of declaring the party a bankrupt. Commission ers may cause the bankrupt to be arrested. 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 conditioned 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 commission 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, according 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 writing, 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 appointed 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 person, 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 reason 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 |