64TH CONGRESS, HOUSE OF REPRESENTATIVES. 1st Session.

AMEND SECTION 17 OF BANKRUPTCY LAW.

REPORT No. 299.

March 6, 1916.—Referred to the House Calendar and ordered to be printed.

Mr. DANFORTH, from the Committee on the Judiciary, submitted the

following

REPORT.

[To accompany H. R. 12195.J

The Committee on the Judiciary, having had under consideration the bill (H. R. 12195) to amend section 17 of the United States bankruptcy law of July 1, 1898, and amendments thereto of February 5, 1903, after due consideration thereof recommends that the bili do pass.

This bill amends section 17 of the bankruptcy act so that it shall read as follows:

SEC. 17. Debts not affected by a discharge.-A discharge in bankruptcy shall release a bankrupt from all of his provable debts, except such as (first) are due as a tax levied by the United States, the State, county, district, or municipality in which he resides; (second) are liabilities for obtaining property by false pretenses or false representa tions, or for willful and malicious injuries to the person or property of another, or for alimony due or to become due, or for maintenance or support of wife or child, or for seduction of an unmarried female, or for breach of promise of marriage accompanied by seduction, or for criminal conversation; (third) have not been duly scheduled in time for proof and allowance, with the name of the creditor if known to the bankrupt, unless such creditor had notice or actual knowledge of the proceedings in bankruptcy; or (fourth) were created by his fraud, embezzlement, misappropriation, or defalcation while acting as an officer or in any fiduciary capacity.

The only amendment sought by this bill is the addition of the words "or for breach of promise of marriage accompanied by seduction," the purpose of this amendment being to avoid à discharge of a judgment for damages in an action for breach of promise where seduction has been pleaded and proved in aggravation of damages. Such an action is based on the breach of the contract and the seduction is provable as aggravation of damages only. In States where the common law prevails the injured maiden has no cause of action for the seduction, as the action for that cause must be brought by a guardian or master of the maiden. It has come to the attention of the committee that in such States where additional damages were undoubtedly allowed in an action for breach of promise of marriage where the seduction was proved it was held that a discharge in bankruptcy released the bankrupt from the judgment. To avoid this injustice this amendment is recommended.

354

SIXTY-SEVENTH CONGRESS. SESS. II. CHS. 20-22.

January 7, 1922. [H. R. 6998.] [Public, No. 121.]

Bankruptcy.

Vol. 39, p.999, amended.

Debts not affected by discharge specified.

Additional exceptions.

Three months' wages to employees, etc.

Moneys of employee

kept to secure per

formance of duties.

1921, 1922.

CHAP. 22.-An Act To amend section 17 of an Act to establish a uniform system of bankruptcy throughout the United States, approved July 1, 1898, as amended by the Acts of February 5, 1903, and March 2, 1917.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 17 of an Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States," approved July 1, 1898, as amended by the Acts of February 5, 1903, and March 2, 1917, be, and hereby is, further amended so as to read as follows:

"SEC. 17. Debts not affected by a dischaRGE.—A discharge in bankruptcy shall release a bankrupt from all of his provable debts, except such as (first) are due as a tax levied by the United States, the State, county, district, or municipality in which he resides; (second) are liabilities for obtaining property by false pretenses or false representations, or for willful and malicious injuries to the person or property of another, or for alimony due or to become due, or for mainte nance or support of wife or child, or for seduction of an unmarried female, or for breach of promise of marriage accompanied by seduction, or for criminal conversation; (third) have not been duly scheduled in time for proof and allowance, with the name of the creditor, if known to the bankrupt, unless such creditor had notice or actual knowledge of the proceedings in bankruptcy; or (fourth) were created by his fraud, embezzlement, misappropriation, or defalcation while acting as an officer or in any fiduciary capacity; or (fifth) are for wages due to workmen, clerks, traveling or city salesmen, or servants, which have been earned within three months before the date of commencement of the proceedings in bankruptcy; or (sixth) are due for moneys of an employee received or retained by his em ployer to secure the faithful performance by such employee of the terms of a contract of employment."

Approved, January 7, 1922.

67TH CONGRESS, HOUSE OF REPRESENTATIVES. 1st Session.

}

AMENDING SECTION 17 OF THE UNITED STATES BANKRUPTCY LAW OF JULY 1, 1898, AND AMENDMENTS THERETO OF FEBRUARY 5, 1903.

OCTOBER 21, 1921.-Referred to the House Calendar and ordered to be printed.

Mr. WALSH, from the Committee on the Judiciary, submitted the following REPORT.

[To accompany H. R. 6998.]

The Committee on the Judiciary, to which was referred the bill (H. R. 6998) to amend section 17 of the United States bankruptcy law of July 1, 1898, and amendments thereto of February 5, 1903, having considered the same, report it back to the House with amendments and recommend that the bill as amended do pass.

The amendments suggested are as follows:

On page 1, line 5, after the word "amended" insert "by the acts of"; and after the figures "1903" insert "and March 2, 1917"; and after the word "be" insert the word "further.'

In line 6 strike out the words "so as hereafter.'

On page 2, line 13, strike out the word "six" and insert the word "three." This amendment is suggested in order to bring the language of the bill in harmony with section 64 of the bankruptcy law, which gives priority to claims against bankruptcy estates for wages due workmen, clerks, etc., which have been earned within three months before the date of the commencement of proceedings.

On page 2, line 15, after the word "moneys" insert the words "of an employee;" and in the same line strike out the word "an" and insert the word "his" in lieu thereof; on line 16, page 2, strike out the word "an" and insert the word "such." This amendment limits the application of the exception to cases where the employee himself has deposited the security referred to in the section, whereas under the original language any third party who had made the deposit would be entitled to receive the benefits of the exception.

Amend the title so as to read:

An act to amend section 17 of an act entitled "An act to establish a uniform system of bankruptcy throughout the United States," approved July 1, 1898, as amended by the acts of February 5, 1903, and March 2, 1917.

"

The bill reenacts the present law down to the subsection numbered (fifth)", on page 2, line 11. The two new sections are desired in order to afford better protection to workmen, clerks, salesmen, and servants against bankrupt employers.

79-956 0 - 77 pt. 1 - 16

Calendar No. 355.

SENATE.

67TH CONGRESS,}

{

REPORT No. 353.

AMENDING SECTION 17 OF THE UNITED STATES BANK RUPTCY LAW.

DECEMBER 12, 1921.-Ordered to be printed.

Mr. NELSON, from the Committee on the Judiciary, submitted the

following

REPORT.

[To accompany H. R. 6998.]

The Committee on the Judiciary, to whom was referred the bill (H. R. 6998) to amend section 17 of an act to establish a uniform system of bankruptcy throughout the United States, approved July 1, 1898, as amended by the acts of February 5, 1903, and March 2, 1917, having considered the same, report favorably thereon with the recommendation that the bill do pass with the following amend

ments:

The following are the amendments:

1. In line 6, page 1, after the word "be" insert a comma and the following words: and hereby is," and after the word "amended" in the same line insert the words "so as."

2. In line 1, page 2, after the word "representations" insert the following words: "or for willful and malicious injuries to the person or property of another."

The second amendment is made to cure a mistake in the bill as it passed the House. The clause to be inserted is in the existing law, and it was not intended that the clause should be left out at this time.

The bill reenacts the present law down to subsection "(fifth)." The two new subsections, (fifth) and (sixth), are needed to afford better protection to workmen, clerks, salesmen, and servants against bankrupt employers.

662

May 27, 1926 [8. 1039]

Public, No. 301.]

amendments.

Vol. 30, p. 544.

Meaning of terms. "Corporations."

SIXTY-NINTH CONGRESS. SESS. I. CHS. 405, 406. 1926.

CHAP. 406.-An Act To amend an Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States," approved July 1, 1898, and Acts amendatory thereof and supplementary thereto."

Be it enacted by the Senate and House of Representatives of the Bankruptcy Act United States of America in Congress assembled, That section 1 (a), subdivisions 6, 8, and 24 of an Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States," approved July 1, 1898, and Acts amendatory thereof and supplementary thereto, be, and the same hereby are, amended as follows: "(6) Corporations' shall mean all bodies having any of the Vol. 30, p. 544, amend powers and privileges of private corporations not possessed by individuals or partnerships and shall include limited or other partnership associations organized under laws making the capital Businesses, etc., ad- subscribed alone responsible for the debts of the association, joint stock companies, unincorporated companies and associations, and any business conducted by a trustee, or trustees, wherein beneficial interest or ownership is evidenced by certificate or other written instrument.

ed.

ded.

"Courts of bankruptcy."

ed.

Vol. 30, p. 544, amend

ed.

"(8) Courts of bankruptcy' shall include the district courts of Possessions included. the United States and of the Territories and possessions to which this Act is or may hereafter be applicable, the Supreme Court of the District of Columbia, and the United States Court of Alaska. "(24) States shall include the Territories and possessions to Vol. 30, p. 545, amend which this Act is, or may hereafter be, applicable, Alaska, and the District of Columbia."

"States."

Possessions included.

Courts of bankruptcy.

Jurisdiction conferred, including pos Sessions.

ed.

SEC. 2. That the introductory provision preceding subdivision 1 of section 2 of said Act, as so amended, be, and the same hereby is, amended to read as follows:

"That the courts of bankruptcy as hereinbefore defined, namely, the district courts of the United States in the several States, the Supreme Court of the District of Columbia, the district courts of Vol. 30, p. 545, amend the several Territories and possessions to which this Act is, or may hereafter be, applicable, and the United States Court in the District of Alaska, are hereby made courts of bankruptcy, and are hereby invested, within their respective territorial limits as now established, or as they may be hereafter changed, with such jurisdiction at law and in equity as will enable them to exercise original jurisdiction in bankruptcy proceedings, in vacation in chambers and during their respective terms, as they are now or may be hereafter held."

Vol. 30, p. 546, amended.

Acts constituting bankruptcy.

Sec. 3. That section 3 (a) of said Act, as so amended, be, and the same hereby is, amended to read as follows:

"(a) Acts of bankruptcy by a person shall consist of his having (1) conveyed, transferred, concealed, or removed, or permitted to be concealed or removed, any part of his property with intent to hinder, delay, or defraud his creditors, or any of them; or (2) transferred, while insolvent, any portion of his property to one or more of his creditors with intent to prefer such creditors over his other creditors; or (3) suffered or permitted, while insolvent, any creditor to obtain a preference through legal proceedings, and not having at least five days before a sale or other disposition of any property affected by such preference vacated or discharged such preference;