claim of five hundred dollars or over.1 But there was no appeal from an adjudication of bankruptcy2 nor from a discharge, so that in these two instances a new right of appeal is given by this act.

It appears from a consideration of the terms of paragraph a that there is no appeal from an order affirming or revoking a composition, or revoking a discharge. Any error in law in such a proceeding may be reviewed by the circuit court of appeals, in pursuance of its supervisory jurisdiction under paragraph b of § 24, but that court cannot pass on errors of fact in these

cases.

Under the Act of 1867, the appeal had to be taken in ten days as at present. The appeal must now be allowed by a judge of the court appealed from or a judge of the circuit court of appeals.5

Paragraph b allows an appeal to the Supreme Court from a final decision of the circuit court of appeals on a claim of two thousand dollars. This is the third one of the matters appealable to the circuit court of appeals from the district court. There can be no appeal from the decision of the circuit court of appeals on the question of adjudication or of discharge. It is difficult to see what is meant by the words "final decision" here. A "final judgment" is held, as we have seen,7 to mean a judgment which disposes of the whole case and leaves no further judicial proceeding to be taken. That cannot be the meaning here, since a decision on the allowance of a claim is one step only in a bankruptcy proceeding, in which there is no final judgment until the estate is closed. The words probably

1 Re York, 4 N. B. R. 479, Fed. Cas. No. 18,139; Re Troy Woolen Co., 9 Blatch. 191, Fed. Cas. No. 14,202; Re Place, 9 Blatch. 369, Fed. Cas. No. 11,201.

2 Morgan v. Thornhill, 11 Wall. 65; Sandusky v. Nat. Bank, 23 Wall. 289; Cleveland Ins. Co. v. Globe Co., 98 U. S. 366.

3 Mead v. Thompson, 15 Wall. 635; Coit v. Robinson, 19 Wall. 274.

4 § 8, 14 Stats. 520, R. S. § 4981.

mean a decision of the circuit court of appeals which cannot be reconsidered in that court in any way.

An appeal is allowed in two cases: first, where the sum in controversy is more than two thousand dollars, and the question is one which might have been taken by writ of error from a state court to the Supreme Court; second, where a justice of the Supreme Court certifies that the determination of the question is necessary to a uniform construction of the bankrupt act throughout the United States. It is noteworthy that in the latter case the appeal lies independent of the amount in controversy.

1

A curious mistake occurs in clause 1 of paragraph b, which speaks of an appeal from a state court. We have already seen 1 that there is no appeal from a state court to the Supreme Court, but only a writ of error.2 The ground for allowing a writ of error in such a case has already been referred to, but it may be stated in a general way to be the adverse decision by the state court of a federal question on which the determination of the case depended.

The sum in controversy here is the same as that required to give the circuit courts jurisdiction, except that it is not mentioned that there must be two thousand dollars in controversy exclusive of interest and costs. Interest would be added to the original debt up to the date of the petition in bankruptcy, and the amount of the claim would be computed in this way. It has been held that if it is legally possible for the plaintiff to recover two thousand dollars, the circuit court will have jurisdiction, though it is extremely unlikely that so large an amount will be recovered. These decisions do not seem controlling in this connection, since the Supreme Court will probably construe this section strictly and refuse to take jurisdiction over a case unless the sum of two thousand dollars is really owing to the creditor. Many of the cases, also, were actions of tort, where

1 Supra, § 487.

2 R. S. § 709, Egan v. Hart, 165 U. S. 188.

3 Supra § 487.

4 Supra, § 486.

5 Curtis Jurisdiction U. S. Courts, 2d ed, 120 et seq., and cases cited supra, $485.

the damages were indefinite. Such cases will not arise under this section because torts are not provable.1

The appeal must be taken within thirty days after the judgment of the circuit court of appeals, and must be allowed by a judge of that court or a justice of the Supreme Court. The circuit court of appeals makes a finding of facts and a finding of law. The record sent up to the Supreme Court consists only of the pleadings, the judgment, and the findings of fact

and law 2

The questions arising under paragraph d as to the certification of questions to the Supreme Court and the issue of writs of certiorari have already been considered.3

$489. Act of 1898.-SEC. 26. ARBITRATION OF CONTROVERSIES.—a. The trustee may, pursuant to the direction of the court, submit to arbitration any controversy arising in the settlement of the estate.

b. Three arbitrators shall be chosen by mutual consent, or one by the trustee, one by the other party to the controversy, and the third by the two so chosen, or if they fail to agree in five days after their appointment the court shall appoint the third arbitrator.

c. The written finding of the arbitrators, or a majority of them, as to the issues presented, may be filed in court and shall have like force and effect as the verdict of a jury.

This provision was contained in the last law, and a somewhat similar one is found in the English act of 1883.5 The word "court" here would seem to include the referee.6 In view especially of Rule XII. it will probably be held that

1 Infra, § 526.

2 Rule XXXVI.

8 See § 487.

4 Act of 1867, § 17, 14 Stats. 524,

R. S. § 5061.

5 Robson, Bankruptcy, 7th ed. 601. 6 Act of 1898, §§ 1 (7), 38 (4). See Rule XII. 1.

the decision in Re Graves,1 that application must be made to the judge, is not now the law. This is not one of the proceedings of which the creditors are entitled to notice.2

The application for authority to arbitrate must state clearly the subject of the controversy and the reasons why the trustee thinks it wise to submit it to arbitration.3

§ 490. Act of 1898.-SEC. 27. COMPROMISES.- a. The trustee may, with the approval of the court, compromise any controversy arising in the administration of the estate upon such terms as he may deem for the best interests of the estate.

There was a similar enactment in the last act of Congress, by virtue of which an assignee under the direction of the court could compromise a doubtful claim, if he thought it for the best interest of the estate. Creditors must have ten days' notice by mail of an intended compromise.5 The trustee must state in his application the subject-matter involved, and the reason why he thinks it wise to compromise. The referee has authority to empower the trustee to compromise, and the judge need not pass on the question.7

§ 491. Act of 1898. SEC. 28. DESIGNATION OF NEWSPAPERS. a. Courts of bankruptcy shall by order designate a newspaper published within their respective territorial districts, and in the county in which the bankrupt resides or the major part of his property is situated, in which notices required to be published by this Act and orders which the court may direct to be published shall be inserted. Any court may in a particular case, for the convenience of parties

11 N. B. R. 237, Fed. Cas. No. 5709.

2 Act of 1898, § 58.

8 Rule XXXIII.

4 Act of 1867, § 17, 14 Stats. 524, R. S. § 5061.

5 Act of 1898, § 58 a (7).

6 Rule XXXIII.

7 Supra, § 489.

in interest, designate some additional newspaper in which notices and orders in such case shall be published.

This section contemplates that the district court shall by standing order designate some one newspaper in each county in which notices are to be published. The latter part of the section gives the court or referee power in a particular case to have notices published in another newspaper also.

§ 492. Act of 1898.-SEC. 29. OFFENSES.-a. A person shall be punished, by imprisonment for a period not to exceed five years, upon conviction of the offense of having knowingly and fraudulently appropriated to his own use, embezzled, spent, or unlawfully transferred any property or secreted or destroyed any document belonging to a bankrupt estate which came into his charge as trustee.

b. A person shall be punished, by imprisonment for a period not to exceed two years, upon conviction of the offense of having knowingly and fraudulently (1) concealed while a bankrupt, or after his discharge, from his trustee any of the property belonging to his estate in bankruptcy; or (2) made a false oath or account in, or in relation to, any proceeding in bankruptcy; (3) presented under oath any false claim for proof against the estate of a bankrupt, or used any such claim in composition personally or by agent, proxy, or attorney, or as agent, proxy, or attorney; or (4) received any material amount of property from a bankrupt after the filing of the petition, with intent to defeat this Act; or (5) extorted or attempted to extort any money or property from any person as a consideration for acting or forbearing to act in bankruptcy proceedings.