tary bankruptcy, would have been sufficient to avoid preferences or transfers made by the debtor previous to the filing of the petition.1 To avoid the preference or transfer, the debtor must have been insolvent, the transfer must have been made with a view to give a preference, the transferee must have had reasonable cause to believe the debtor insolvent and that the transfer was in fraud of the bankruptcy act, and the preference or transfer must have been within the time, fixed by the act, previous to the filing of the petition by or against the debtor. The creditor who attempted to secure his debt during the pendency of the law of 1867, did so at his peril, and was subject to attack by other creditors within four months thereafter, upon the ground that the debtor was insolvent, and known so to be to the creditor taking such security." 1 Sufficient evidence of act of bankruptcy may not be sufficient to avoid a conveyance charged to be fraudulent as a preference. Nicodemus' case, 3 B. R. 55; Fuller's case, 4 B. R. 29. Though such conveyance is held evidence of fraud in Perry v. Longley, 1 B. R. 155; Hawkins v. Dean and Hawkins v. Garrett, 2 B. R. 29; Davis v. Armstrong, 3 B. R. 29. For difference between the debtor's intent, denounced by Laws of 1841 and 1867, see Arnold's case, 2 B. R. 61; Haughey v. Albin, 2 B. R. 129; Foster .v. Hackley, 2 B. R. 131; Kingsbury's case, 3 B. R. 84. Valid transfers upheld. Wynne's case, 4 B. R. 5; Potter v. Coggeshall, 4 B. R. 19. 2 The burden was on the party attacking the preference to prove that the law had been violated. Hunt's case, 2 B. R. 166; Beck's case and Hafer's case, 1 B. R. 163. The proceedings against the debtor by the creditor to force involuntary bankruptcy were independent of the proceedings against the preferred creditor. Drummond's case, 1 B. R. 10; Diblee's case, 2 B. R. 185; Schick's case, B. R. Sup. 38; Dunkle's case, 7 B. R. 72. And did not affect the title transferred. Williams' case, 3 B. R. 74. If the preference was made more than four months prior to the beginning of the proceedings under the bankruptcy act, whether for voluntary or involuntary bankruptcy, the other creditors cannot attack it for insolvency on part of the debtor and knowledge thereof on part of the creditor. Bean v. Brookmire, 4 B. R. 57. To be void, the preference or transfer must come within the express terms of the law. Toof v. Martin, 6 B. R. 49; id. 13 Wall. 40; Foster v. Hackley, 2 B. R. 131; Hunt's case, 2 B. R. 166; Street v. Dawson, 4 B. R. 60; Haughey v. Albin, 2 B. R. 129; Scammon v. Cole, 4 B. R. 257; Forbes valid, whether the proceeding be v. Howe, 102 Mass. 427. But the preference will be held voluntary or involuntary bank But if the four months in case of creditor, and six months in case of any other person, had transpired, the preference or transfer could not be questioned, if otherwise fair and honest. This provision of the bankruptcy act in nowise prevented the avoidance of the conveyance creating the preference, on the ground of fraud. Courts of Bankruptcy, Act of 1867.- Under the act of March 2, 1867, the District Courts of the United States were charged with the administration of the bankrupt's estate and empowered to order his final discharge, having original jurisdiction in their respective districts in all matters and proceedings in bankruptcy, being authorized to hear and adjudicate upon these matters according to the provisions of that act. These courts were always open for the transaction of business, exercising the powers thereby granted and conferred in vacation as well as in term time, the judge sitting in chambers having the same power and jurisdiction — including the power of keeping order and punishing for contempt as when sitting in court; the jurisdiction conferred being extended to all cases and controversies arising between the bankrupt and any creditor or creditors who claimed any debt or demand under the bankruptcy; to the collection of all the assets of the bankrupt; to the ascertainment and liquidation of the liens and other specific claims thereon; to the adjustment of the various priorities and conflicting interests of all parties; and to the marshaling and disposition of the different funds and assets so as to secure the rights. of all parties and due distribution of the assets among all the creditors; and to all acts, matters and things to be done under and by virtue of the bankruptcy until the final distribution and settlement of the estate of the bankrupt and the close of the proceedings in bankruptcy. These courts had full authority to compel obedience to all orders and decrees passed by them in bankruptcy, and could sit for the transaction of business in bankruptcy at any place in the district, after due notice given at such place, as well as at the places designated by the law for holding such courts. ruptcy. R. 19. Potter v. Coggeshall, 4 B. R. 91; Waurer v. Frantz, 4 B. R. 142; Hubbard v. Allaire, 7 Blatch. 284; Dow's case, 4 B. R. 10: Hall v. Hayner, 3 C. L. N. 402; Collins v. Gray, 8 Blatch. 483. See Wynne's case, 4 B. R. 5; Fuller's case, 4 B. R. 29; Bean v. Brookmire, 4 B. R. 57; Butler's case, 4 B. The Supreme Court of the District of Columbia and of the territories, and the justices of the latter while holding District Court, exercised jurisdiction, under the law of 1867, over bankruptcies in their respective jurisdictions. Courts of Bankruptcy, Act of 1898.-"Courts of Bankruptcy," under chapter 2, section 2, of the law of 1898, include the District Courts of the United States in the several states and territories, the Supreme Court of the District of Columbia, and the United States Court of the District of Alaska and the Indian Territory. Under chapter 4, section 23, of the act of 1898, the United States Circuit Courts have jurisdiction of all controversies at law and in equity, as distinguished from proceedings in bankruptcy, between trustees, as such, and adverse claimants, concerning the property claimed or acquired by the trustee, in the same manner and to the same extent only as though bankruptcy proceedings had not been instituted, and such controversies had been between the bankrupt and such adverse claimant; and have concurrent jurisdiction with the courts of bankruptcy, within their respective territorial limits, of the offenses enumerated in this act. Under section 24, the Supreme Court of the United States, the Circuit Courts of Appeal of the United States, and the Supreme Courts of the Territories, in vacation and in chambers and during their respective terms, as now, or as they may be hereafter held, are invested with appellate jurisdiction of controversies arising in bankruptcy proceedings from the courts of bankruptcy over which. they have appellate jurisdiction in other cases. The Supreme Court of the United States exercises a like jurisdiction from courts of bankruptcy not within any organized circuit of the United States and from the Supreme Court of the District of Columbia. Definitions, Act of 1898.- The act of 1898 seeks to avoid vexatious issues, such as arose under the act of 1867, by defining clearly many terms rendered necessarily technical by their use in bankruptcy legislation. This precaution will simplify the language of bankruptcy practice. court To illustrate: A distinction is drawn between the word and the expression "courts of bankruptcy:" the former including the referee, the latter excluding him. A careful reading of the chap ter on definitions will reward the student and render the practitioner accurate in expression.1 Referees. These officers are appointed by the courts of bankruptcy within the territorial limits of which these courts respectively have jurisdiction. Referees hold office two years, subject to removal by these courts in their discretion. The limits of the referee's district may be changed by these courts, provided there shall not be less than one referee in each county where the services of a referee are needed.2 Trustees. These officers are appointed by the creditors of the bankrupt at their first meeting after the adjudication, or after a vacancy has occurred, or after an estate has been reopened, or after a composition has been set aside or a discharge revoked, or if there is a vacancy in the office of trustee. If the creditors do not appoint a trustee the court shall do so.3 Creditors. The court shall cause the creditors to hold their first meeting not less than ten nor more than thirty days after the adjudication, or as soon thereafter as may be, at which the judge or referee shall preside, may allow or disallow claims there presented, and examine the bankrupt or cause him to be examined, appoint a trustee, or not more than three trustees, and take other steps which may be pertinent and necessary for the promotion of the best interests of the estate.1 Estates.-Depositories for money shall be designated by order of the courts of bankruptcy. Actual and necessary expenses of officers must be reported in detail under oath, and be examined and approved or disapproved by the court, and, if approved, paid out of the estate in which they were incurred; debts of the bankrupt of certain classes may be approved and allowed and priorities ordered; dividends declared and paid:8 liens adjudicated; set-offs and counterclaims adjusted:10 and the amounts due upon claims determined. 1 Act of 1898, chap. 1, § 1. 6 Act of 1898, chap. 7, § 62. 7 Act of 1898, chap. 7, §§ 63, 64. 9 Act of 1898, chap. 7, § 67. Possession of Property. The title and possession of property belonging to the bankrupt remains with him until after adjudication and the appointment and qualification of the trustee; provided, the judge may, upon satisfactory proof, by affidavit, that the bankrupt against whom an involuntary petition has been filed and is pending has committed an act of bankruptcy, or has neglected, or is neglecting, or is about to so neglect, his property so that it has thereby deteriorated, or is thereby deteriorating, or is about thereby to deteriorate, in value, issue a warrant to the marshal to seize and hold it subject to further orders. In this event the petitioner must first enter into bond in an amount to be fixed by the judge, with such sureties as he shall approve, conditioned to indemnify such bankrupt for such damages as he shall sustain in the event such assignee shall prove to have been wrongfully obtained. The bankrupt may file a bond and retain the property.1 Title to Property.— With exceptions unnecessary to mention at this time, the trustee, upon his qualification, takes title to the bankrupt's property as of the date of the adjudication. It shall be appraised by three appraisers appointed by the court.2 When Act of 1898 Took Effect. This act took effect on July 1, 1898, having been on that day approved by the President; providing however, that no petition for voluntary bankruptcy shall be filed within one month, and no petition for involuntary bankruptcy shall be filed within four months of the passage thereof.3 1 Act of 1898, § 69. 2 Act of 1898, § 70. 3 Act of 1898, last section. |