short, simple, and concise Act, and its administration should be under the direction of the court according to the ordinary and familiar rules of a court of equity. The Committee recommend, if this report be approved, that the Association take such action as will bring this subject prominently before the people of the country, so that there may be brought to bear upon Congress, at its next session, evidence of the pressing need of the business community throughout the Union for relief and protection from present difficulties which the proposed legislation alone can afford. The committee have not undertaken to consider and recommend the details of the legislation required to accomplish the desired results, but in order to suggest, in a general way, an appropriate form of Congressional action, the committee append hereto a draft of a bankruptcy bill drawn by one of its members in general conformity to the views above expressed; together with the bill to regulate interstate debts, credits, and collections, which was submitted at the last annual meeting of our Association. These bills are not given as complete and perfect, but merely as furnishing a proper ground for intelligent discussion and progress. Although the subject of a uniformity of commercial paper in all interstate transactions was not in terms referred to this Committee, it is so intimately connected with the particular topics they were directed to consider, that the Committee have deemed it their duty to direct the attention of the Association to the bill to secure such uniformity, which was prepared by a member of the Committee for the American Bankers' Association, and introduced in Congress by the late Judge Poland, in whose death since the last meeting of the Association we are called to mourn the loss of so good a friend, and one so highly esteemed and so affectionately regarded by us all. His warm support of the measure is one more important service for which both the profession and the country are indebted to him. 23 The Committee recommend the adoption of the following resolution: Resolved, That the report of the committee on commercial law be adopted, and that the committee be empowered to take such action on behalf of the American Bar Association as they may deem necessary or expedient to secure the legislation recommended in their report. All of which is respectfully submitted. GEORGE A. MERCER, APPENDIX. BANKRUPTCY BILL. The Equity Bill as reported for passage by the Senate Judiciary Committee, with the recent amendments proposed by the author of the bill, is as follows. The amendments are indicated by brackets: A BILL to establish a uniform system of bankruptcy throughout the United States : Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That whenever any person, without fraud, shall have become involved in debts and liabilities beyond his means of payment, and amounting to $500 or upward, he may apply by petition in equity setting forth his insolvency, and the cause thereof, with schedules of his liabilities and assets, duly verified, to the district court of the United States for the district in which he may reside, on which jurisdiction is hereby conferred, to surrender his estate for the benefit of his creditors, except so much as shall be exempt from execution under and by the laws of the State where he resides, and thereupon if good cause appear, the court shall adjudge the petitioner to be a bankrupt, appoint a receiver of such estate, and cause reasonable notice by service, mail, publication, or otherwise, to be given to all persons interested, and shall proceed [in a summary way] to hear and dispose of the cause upon its merits as the pleadings and proofs may require, and to marshal and distribute said estate among the creditors of the petitioner according to the rules and practice of equity. And if it shall appear that such debts and liabilities were incurred without fraud, and that the inability of the debtor to make payment has arisen from accident and misfortune, and without fraud, the court shall grant him a discharge as a bankrupt from all such debts and liabilities. This act shall also apply to corporations. [But no person shall be entitled to a discharge in bankruptcy who, without loss from sudden accident and misfortune, such as fire, the failure of third persons, or the like, suffers his assets to become so depreciated or wasted that they will not pay at least fifty cents upon a dollar of his indebtedness, unless at least two-thirds in number and twothirds in amount of his creditors shall consent to his discharge. In case any debtor shall voluntarily settle his affairs with his creditors out of court, but in conformity with the principles of this act, and of the rules that may be established under it, he may apply for and obtain his discharge as in other cases, on showing his right thereto.] SEC. 2. That whenever any person residing and owing debts as aforesaid, after the passage of this act, departs from the State, district, or Territory of which he is an inhabitant, with an intent to defraud his creditors, or, being absent, remains so, with like intent, or conceals himself to avoid arrest or service of legal process issued or feared, or makes a fraudulent transfer of his property, or conceals or removes the same to avoid process, or, with intent to defraud his creditors, procures or suffers judgment against him, or gives a warrant to confess judgment or a judgment note, with like intent, or who, having been arrested in any civil action fails or neglects to give bail, or in some other mode to procure his discharge for twenty days, or fails to dissolve an attachment laid upon his property in a civil action for a like period, or fails for sixty days to satisfy a final judgment or decree rendered against him for the payment of money, unless a supersedeas or stay of execution has been effected in respect thereto, or who, being a trader, has suspended and not resumed payment of his commercial paper, open accounts made, passed, or contracted in the course of his business, for a period of thirty days after the same were payable, or who, being insolvent, makes a preference of any creditor except as by this act permitted, or makes an assignment for the benefit of existing creditors with or without preference, any creditor or creditors may file such a petition [duly verified by affidavit] in behalf of all persons interested, and thereupon the like proceedings shall be had as in the case of a petition by the debtor. [Provided, that this section shall not apply to any farmer, mechanic, or professional person; and, Provided further, that no petition in involuntary bankruptcy shall be filed until after bond given in such sum, and with such sureties as the district judge shall approve, conditioned for the payment of all such damages, expenses, and costs as may be awarded by that or any other court, for the wrongful institution or prosecution of the proceedings.] Insolvency under this act shall be deemed to exist only when the debtor's liabilities exceed in amount the value of his property liable to execution, and the available debts due him. SEC. 3. That the court shall have power to grant extensions of time for payment, and to reduce the amount of indebtedness pro rata, for the purpose of allowing the debtor to proceed with his business, if it shall seem best to so do. And any agreement between the debtor and a majority in amount and number of his creditors may be carried into effect, if approved by the court. SEC. 4. That the court may, at any time during the proceedings, order that all or any other proceedings be stayed or dismissed, and may require all or any claims to be presented to it for determination, or may allow any other proceeding to be prosecuted to final judgment, and such judgment to be filed in the bankruptcy. Any claim not due may be matured by a rebate under an order of the court. [And set-offs and recoupments shall be allowed as shall seem just, without distinction between legal and equitable, or joint and several claims; and any uncertain, contingent, or disputed demand, whether for or against the bankrupt, may be adjusted in a summary way, by compromise, arbitrament, or otherwise, with the approval of the court.] No creditor shall be prejudiced by having taken security in good faith, and without notice of impending bankruptcy; but securities otherwise taken may be set aside. SEC. 5. That any interlocutory matter in the course of the proceedings may be heard before any standing or special master in chancery, and under a standing or a special order of reference, and at any place designated in such order; but all the decisions of such masters shall be subject to the summary and informal supervision and control. of the court. [Evidence may be taken before the hearing, or orally upon the same, and shall not be written out in full, but its substance only shall be stated, unless otherwise ordered by the court or judge.] The circuit judge and the associate justice of the supreme court assigned to the circuit shall have and exercise a like supervision and control over all the proceedings of the district court in bankruptcy; and at the request of any person aggrieved by any decision of the district court, or the julge thereof, he shall forthwith certify the questions involved in such decision to the circuit judge for summary review and redetermination; and any decision of the circuit judge may be in like manner reviewed by said justice of the |