Rensselaer Semi-Weekly Republican, Volume 36, Number 79, Rensselaer, Jasper County, 27 May 1904 — A Move Toward Bankruptcy [ARTICLE]

A Move Toward Bankruptcy

i Preliminary steps towards throw- ' ing the MpCoy bank matter into involuntary bankruptcy, have been commenced, but just who is pushing the matter, or the advantages ( they expect to gain by it, are things difficult to learn. That a petition to that end has been prepared, signed, and forwarded to. the clerk of the U. S. courts at Indianapolis, there eeems no reason to doubt, It is necessary, to get a hearing for such an application, that the petition be signed by at least three creditors and represent at least SI,OOO in claims. A bond is also required. If these conditions have been complied with, and it is in every way probable that they have, the next step, as we are informed, is for-a federal judge to appoint a day for hearing the application, and then decide from the showings made, whether it will be better to place the matter in the bankrupt court, or leave it in charge of the assignee, as at present. Tnere being a difference in cases of voluntary and involuntary bankruptcy proceedings, a hearing in court be necessary in the latter case. . It is unlTerstood that the principal instigators of the bankruptcy movement are non-resident creditors, but some residents signed the petition. So far as oan be ascertained there is no general demand among the creditors for this change. The argument that has been made that under the bankruptcy proceeding the dower rights of the wives of the partners would be less, than under an assignee, is not supported by attorneys. The claim is also made that a bankrupt law proceeding would probably reach property in other states whioh the assignee could not reach. Also that a bankrupt court could reach farther back than than an assignee. Whether or not there is any great merit in these claims, we are unable to state.