quarantined State or Territory or the District of Columbia, or from the quar antined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia, any cattle or other live stock, except as hereinafter provided; nor shall any person, company, or corporation deliver for such transportation to any railroad company, or to the master or owner of any boat or vessel, any cattle or other live stock, except as hereinafter provided; nor shall any person, company, or corporation drive on foot, or cause to be driven on foot, or transport in private conveyance or cause to be transported in private conveyance, from a quarantined State or Territory or the District of Columbia, or from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia, any cattle or other live stock, except as hereinafter provided. [33 Stat. L. 1264.] SEC. 3. [Regulations for inspections, etc.] That it shall be the duty of the Secretary of Agriculture, and he is hereby authorized and directed, when the public safety will permit, to make and promulgate rules and regulations which shall permit and govern the inspection, disinfection, certification, treatment, handling, and method and manner of delivery and shipment of cattle or other live stock from a quarantined State or Territory or the District of Columbia, and from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia; and the Secretary of Agriculture shall give notice of such rules and regulations in the manner provided in section two of this Act for notice of establishment of quarantine. [33 Stat. L. 1265.] SEC. 4. [Moving of inspected, etc., cattle.] That cattle or other live stock may be moved from a quarantined State or Territory or the District of Columbia, or from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia, under and in compliance with the rules and regulations of the Secretary of Agriculture, made and promulgated in pursuance of the provisions of section three of this Act; but it shall be unlawful to move, or to allow to be moved, any cattle or other live stock from any quarantined State or Territory or the District of Columbia, or from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia, in manner or method or under conditions other than those prescribed by the Secretary of Agriculture. [33 Stat. L. 1265.] SEC. 5. [Punishment for interfering, etc., with employees.] That every person who forcibly assaults, resists, opposes, prevents, impedes, or interferes with any officer or employee of the Bureau of Animal Industry of the United States Department of Agriculture in the execution of his duties, or on account of the execution of his duties, shall be fined not less than one hundred dollars nor more than one thousand dollars, or be imprisoned not less than one month nor more than one year, or by both such fine and imprisonment; and every person who discharges any deadly weapon at any officer or employee of the Bureau of Animal Industry of the United States Department of Agriculture, or uses any dangerous or deadly weapon in resisting him in the execution of his duties, with intent to commit a bodily injury upon him or to deter or prevent him from discharging his duties, or on account of the performance of his duties, shall, upon conviction, be imprisoned at hard labor for a term not more than five years or fined not to exceed one thousand dollars. [33 Stat. L. 1265.] SEC. 6. [Punishment for illegally shipping, etc., cattle.] That any person, company, or corporation violating the provisions of sections two or four of this Act shall be guilty of a misdemeanor, and on conviction shall be punished by a fine of not less than one hundred dollars nor more than one thousand dollars, or by imprisonment not more than one year, or by both such fine and imprisonment. [33 Stat. L. 1265.] [Inspection of horses- waiver of certificate with beef, etc.] The provisions of the Act of June 3, 1902, ch. 985, set out in vol. 1, p. 451, are repeated in the subsequent Aets of March 3, 1903, ch. 1008, 32 Stat. L. 1150; April 23, 1904, ch. 1486, 33 Stat. L. 280; March 3, 1905, ch. 1405, 33 Stat. L. 865. BANKRUPTCY. Act of Feb. 9, 1903, ch. 487 (Amending Bankruptcy Act of July 1, 1898), 38. Sec. 1. Extra Pay to Receivers for Continuing Business, 38. 2. General Assignment or Applying, etc., for Receiver, 38. 3. Involuntary Bankrupts, 39. 4. Hearing Application and Granting Discharge, 40. 5. Debts Not Affected by Discharge, 42. 6. Service of Petition - Return - Publication-Time to Plead, 42. 7. Compulsory Attendance of Witnesses, 43. 8. Suits by Trustees - Where Brought, 43. 9. Compensation of Referees-Fees and Commissions, 44. 10. Duties of Trustees - Filing of Decree, 44. II. Compensation of Trustees - Fees and Commissions, 45. 13. What Constitutes Preference - Preferences Voidable, 45. 16. Jurisdiction of Suits to Recover Property Transferred, 47. 18. Compensation of Referees and Trustees Restricted, 48. An Act To amend an Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States," approved July first, eighteen hundred and ninety-eight. [Act of Feb. 9, 1903, ch. 487, 32 Stat. L. 797.] [SEC. 1.] [Extra pay to receivers for continuing business.] That clause five of section two of said Act be, and the same is hereby, amended so as to read as follows: "(5) Authorize the business of bankrupts to be conducted for limited periods by receivers, the marshals, or trustees, if necessary in the best interests of the estates, and allow such officers additional compensation for such services, but not at a greater rate than in this Act allowed trustees for similar services; [32 Stat. L. 797.] The provision here amended is set out in vol. 1, p. 533. Carrying on bankrupt's business. Under the original act a receiver's compensation was not limited by statute, but only by the discretion of the court, like that of a rereiver in equity. But under sections 2a (5) and 48a, as amended, and sec. 72, the receiver is only entitled to the stated percentage upon disbursements prescribed for all services, including the carrying on of the bankrupt's business, which is fixed as the maximum compensation of the trustee. The word "disbursements," however, in the case of the receiver may be construed so as to permit a compensation based upon the value of the property which he delivers, and is not confined to payments in money. In re Cambridge Lumber Co., (1905) 136 Fed. Rep. 983. See further note under sec. 9, infra, p. 44. The court is permitted to allow as maximum compensation to receivers who have carried on the business of the bankrupt before the appointment of a trustee the maximum allowed to the trustees by section 48, not necessarily to be deducted from the trustee's maximum, but in some cases reckoned in addition to the latter. In re Richards, (1903) 127 Fed. Rep. 772. SEC. 2. [General assignment or applying, etc., for receiver.] That clause four, subdivision a, of section three of said Act, be, and the same is hereby, amended so as to read as follows: x "or (4) made a general assignment for the benefit of his creditors, or, being insolvent, applied for a receiver or trustee for his property or because of insolvency a receiver or trustee has been put in charge of his property under the laws of a State, of a Territory, or of the United States." [32 Stat. L. 797.] The provision here amended is set out in vol. 1, p. 542. General assignment. "When a general assignment for the benefit of creditors is made by a debtor, eo instanti there is generated by the statute a right in his creditors to have his affairs wound up, and his estate administered in the bankruptcy court, pursuant to the bankrupt law, which has suspended the operation of all state insolvency laws; and if the enforcement of this right is demanded by a proper proceeding within four months after its inception, no action in any court in any suit brought after the commission of the act of bankruptcy can defeat it, without the consent of the bankrupt court." In re Knight, (1903) 125 Fed. Rep. 35. Receivership prior to amendment. The appointment of a receiver because of insolvency, made by a state court prior to this amendment, will not support a petition filed after the amendment, though the receivership still continues. Seaboard Steel Casting Co. v. William R. Trigg Co., (1903) 124 Fed. Rep. 75. Court appointment not necessary. The provision, “because of insolvency, a receiver or trustee has been put in charge of his property under the laws of the state," etc., does not mean exclusively that the trustee must have been put in charge by the order of a court, but embraces all other methods whereby the property of an insolvent is committed to a trustee for the creditors under the laws of a state, etc., including the appointment of liquidating trustees of a corporation or an unincorporated company by vote of the company under the law of its organization for the purpose of winding up its affairs. In re Hercules Atkin Co., (1904) 133 Fed. Rep. 813. Appointment in judgment creditor's suit. The provision that an act of bankruptcy takes place, when because of insolvency a receiver or trustee has been put in charge of a person's property under the laws of a state, etc., does not only apply to those cases in which a receiver or trustee has been appointed under the laws of the state providing for the administrator of an insolvent's estate, but ap plies to the appointment of a receiver in a judgment creditor's suit in a state court where insolvency was one of the grounds of the appointment. In re Spalding, (1905) 134 Fed. Rep. 507. Power of state courts. The appointment of a receiver by a state court on the ground of insolvency of the debtor does not give it priority of jurisdiction to administer the property of the debtor to the exclusion of the Bankruptcy Act. In re Knight, (1903) 125 Fed. Rep. 35. Grounds of appointment. — Where a receiver is appointed for a corporation on a bill filed in a state court alleging insolvency, it has committed an act of bankruptcy within this section. Lowenstein v. Henry McShane Mfg. Co., (1904) 130 Fed. Rep. 1007. A receivership in a state court in order to constitute an act of bankruptcy must have been established or the receiver appointed on the ground of insolvency. If made on any other ground it does not constitute an act of bankruptcy. Blue Mountain Iron, etc., Co. v. Portner, (C. C. A. 1904) 131 Fed. Rep. 57; In re Douglas Coal, etc., Co., (1904) 131 Fed. Rep. 769. Where a receiver was appointed in a suit to foreclose a mortgage on allegations of breach of covenants this does not constitute an act of bankruptcy. In re Douglas Coal, etc., Co., (1904) 131 Fed. Rep. 769. Showing ground of appointment. — The appointment of a receiver by a state court is not subject to collateral attack on the ground of want of jurisdiction of the person. The ground of such appointment is shown by the written order making it, and none other can be added thereto by parol evidence, and where such appointment is alleged as an act of bankruptcy, the record is admissible to show both the appointment and the grounds thereof. Blue Mountain Iron, etc., Co. v. Portner, (C. C. A. 1904) 131 Fed. Rep. 57. Temporary receivership. It is not material whether the receivers appointed for an insolvent corporation were temporary or permanent. Blue Mountain Iron, etc., Co. v. Portner, (C. C. A. 1904) 131 Fed. Rep. 57. SEC. 3. [Involuntary bankrupts.] That subdivision b of section four of said Act be, and the same is hereby, amended so as to read as follows: "b Any natural person, except a wage-earner, or a person engaged chiefly in farming or the tillage of the soil, any unincorporated company, and any corporation engaged principally in manufacturing, trading, printing, publishing, mining, or mercantile pursuits, owing debts to the amount of one thousand dollars or over, may be adjudged an involuntary bankrupt upon default or an impartial trial, and shall be subject to the provisions and entitled to the benefits of this Act. Private bankers, but not national banks or banks incorporated under State or Territorial laws, may be adjudged involuntary bankrupts. "The bankruptcy of a corporation shall not release its officers, directors, or stockholders, as such, from any liability under the laws of a State or Territory or of the United States." [32 Stat. L. 797.] The provision here amended is set out in vol. 1, p. 546. Associations included. An association organized under the Pa. Act 1874 (P. L. 271), authorizing the formation of partnership associations in which the capital subscribed shall alone be responsible for the debts of the association, except under certain circumstances," and doing a mercantile business, whether regarded as a corporation or an unincorporated partnership or company, is embraced in the Bankruptcy Act and subject to involuntary proceedings. In re Hercules Atkin Co., (1904) 133 Fed. Rep. 813. "Ex "Principally" engaged in trading. tensively" engaged in trading is not equivalent to the statutory "principally" engaged in trading,, and a petition alleging that the alleged insolvent was extensively engaged " in trading will not support an adjudication. 66 SEC. 4. [Hearing application and granting discharge.] That subdivision b of section fourteen of said Act be, and the same is hereby, amended so as to read as follows: "b The judge shall hear the application for a discharge, and such proofs and pleas as may be made in opposition thereto by parties in interest, at such time as will give parties in interest a reasonable opportunity to be fully heard, and investigate the merits of the application and discharge the applicant unless he has (1) committed an offense punishable by imprisonment as herein provided; or (2) with intent to conceal his financial condition, destroyed, concealed, or failed to keep books of account or records from which such condition might be ascertained; or (3) obtained property on credit from any person upon a materially false statement in writing made to such person for the purpose of obtaining such property on credit; or (4) at any time subsequent to the first day of the four months immediately preceding the filing of the petition transferred, removed, destroyed, or concealed, or permitted to be removed, destroyed, or concealed any of his property with intent to hinder, delay, or defraud his creditors; or (5) in voluntary proceedings been granted a discharge in bankruptcy within six years; or (6) in the course of the proceedings in bankruptcy refused to obey any lawful order of or to answer any material question approved by the court." [32 Stat. L. 797, 798.] The provision here amended is set out in vol. 1, p. 568. Effect of amendment. - This provision is not retroactive. It creates no new offense and imposes no new penalty, but only fixes new conditions of discharge in case of petitions filed after its passage. In re Carleton, (1904) 131 Fed. Rep. 146. "Parties in interest."- A trustee who is prosecuting proceedings against the bankrupt to recover or compel the payment or delivery to him of property or money alleged to have been wrongfully and fraudulently concealed or withheld from him by the bankrupt, is a "party in interest" and may make and file specifications of objection to the discharge. In re Levey, (1904) 133 Fed. Rep. 572. An averment in a petition to revoke a discharge in bankruptcy that the petitioners are "creditors" of the bankrupt does not show that they are " parties in interest" within the meaning of the law. The petition must show that the petitioners had at the time of the discharge provable debts against the bankrupt which were affected by the discharge. In re Chandler, (C. C. A. 1905) 138 Fed. Rep. 637. Form and sufficiency of specifications of objections to discharge, see In re Levey, (1904) 133 Fed. Rep. 572. Failure to keep books of account. — A discharge in bankruptcy "is a great privilege, and demands that reasonable care, at least, shall be taken in advance by the one who asks for it," and a discharge will be refused the bankrupt where, being a man of large business experience, he failed to keep any books or records whatever which would disclose his financial condition, as the intent to conceal must be presumed from the facts, the amendment having worked a change in the law in this respect. In re Alvord, (1905) 135 Fed. Rep. 236. Where the bankrupts made a general assignment two years before the Bankruptcy Act was passed, and did not thereafter en |