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sented as to the due passage of the original resolution, the confirmatory signatures, and what is for the best interest of all concerned. 16. best interest of all concerned, cause such resolu- 'itor of the debtor may inspect such statement tion to be recorded and statement of assets and at prescribed times, and on payment of such debts to be filed ; and until such record and fee, if any, as may be prescribed.” filing shall have taken place, such resolution shall be of no validity. And any creditor of the debtor may inspect such record and statement at all reasonable times."

“ The creditors may, by resolution passed in “ The creditors may, by an extraordinary the manner and under the circumstances afore- resolution, add to or vary the provisions of any said, add to, or vary the provisions of, any com- composition previously accepted by them, withposition previously accepted by them, without out prejudice to any persons taking interests prejudice to any persons taking interests under under such provisions who do not assent to such such provisions who do not assent to such addi addition or variation ; and any such extraordition or variation. And any such additional nary resolution shall be presented to the regisresolution shall be presented to the court in the trur in the same manner and with the same same manner, and proceeded with in the same consequences as the extraordinary resolution by way and with the same consequences, as the res which the composition was accepted in the first olution by which the composition was accepted instance.” in the first instance."

“The provisions of a composition, accepted “The provisions of a composition, accepted by such resolution in pursuance of this section, by an extraordinary resolution in pursuance of shall be binding on all the creditors whose this section, shall be binding on all the creditors names and addresses, and the amounts of the whose names and addresses, and the amount of debts due to whom, are shown in the statement the debts due to whom, are shown in the stateof the debtor produced at the meeting at which ment of the debtor produced to the MEETINGS the resolution shall have been passed, but shall at which the resolution has passed, but shall not affect or prejudice the rights of any other not affect or prejudice the rights of any other creditors."

creditors." “ Where a debt arises on a bill of exchange “Where a debt arises on a bill of exchange or promissory note, if the debtor shall be igno- or promissory note, if the debtor is ignorant of rant of ihe holder of any such bill of exchange the holder of any such bill of exchange or or promissory note, he shall be required to state promissory note, he shall be required to state the amount of such bill or note, the date on the amount of such bill or note, the date on which it falls due, the names of the acceptor which it falls due, the name of the acceptor or and of the person to whom it is payable, and person to whom it is payable, and any other any other particulars within his knowledge re- particulars within his knowledge respecting the specting the same; and the insertion of such same; and the insertion of such particulars particulars shall be deemed a sufficient descrip- shall be deemed a sufficient description of the tion by the debtor in respect to such debt. creditor of the debtor in respect of such debt;

Any mistake made inadvertently by a debtor and any mistake made inadvertently by a debtor in the statement of his debts may be corrected in the statement of his debts may be corrected upon reasonable notice, and with the consent of after the prescribed notice has been given, with a general meeting of his creditors.

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the consent of a general meeting of his creditors."

Every such composition shall, subject to

(No similar provision.) priorities declared in said act, provide for a pro rata payment or satisfaction, in money, to the creditors of such debtor, in proportion to the amount of their unsecured debts, or their debts in respect to which any such security shall have been duly surrendered and given up.”

" The provisions of any composition made in “The provisions of any composition made in pursuance of this section may be enforced by pursuance of this section may be enforced by the court, on motion made in a summary man- the court on a motion made in a summary man. ner, by any person interested, and on reason. ner by any person interested ; and any disobe. able notice; and any disobedience of the order dience of the order of the court made on such of the court made on such motion shall be motion shall be deemed to be a contempt of deemed to be a contempt of court."

court." “Rules and regulations of court may be “Rules of court may be made in relation to

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[No. 2.

4. IBID. WHO MAY BE HEARD. None but unsecured creditors can be heard at the hearing. Semble, that a secured creditor, who does not release his security at or before the first meeting, cannot be heard. 16.

5. IBID. — PASSAGE OF RESOLUTION. - DEBTOR. — Notice to the creditors having been given, the required number of unsecured creditors assembled at the first meeting called may pass the resolution. If a secured creditor wishes to vote he must first relinquish his security. The debtor must appear and submit the statement required. As no other formal meeting of the creditors is required, he is not bound to appear at the hearing, to again submit his statement. 16.

6. IBID. - HEARING. WHAT COURT MUST DECIDE. The resolution purporting to have been previously passed, together with the debtor's statement, having been presented to the court, a hearing will be ordered on notice. At this hearing it must be decided whether such resolution was duly passed and the needed confirmatory signatures obtained, and, if proved to the satisfaction of the court, the court must then be satisfied that the terms, &c., are for the best interest of all concerned. 16.

7. IBID. - SIGNATURES TO RESOLUTION. It is not necessary that the confirmatory signatures shall be attached to the resolution at the first meeting; but they must be attached before, or at, the hearing. They are essential to make the resolution operative. Ib. 8. IBID. MEETING TO VARY ORIGINAL PROPOSITION.

WHEN MUST BE HELD. It is the intent of the bankrupt act that a meeting for the purpose of adding to or varying the original proposition should follow the recording, &c., of the former resolution. But, semble, that if after the first meeting, and before the hearing, the debtor agrees to enlarge his offer, the court may inquire into it. The proposed advance in the percentage is only demonstrative of the fact that the original proposition, whether confirmed or not by the needed signatures, is not for the best interest of the creditors. 16.

9. IBID. CREDITOR'S NAME ON LIST. EVIDENCE. The fact that a debtor has placed the name of a creditor on his list does not, primâ facie, establish that he is a creditor. The creditor must prove himself to be such in the formal manner required by the statute and the general made in relation to proceedings of composition proceedings on the occasion of the acceptance herein provided for, in the same manner and to of a composition by an extraordinary resoluthe same extent as now provided by law in re- tion of creditors, in the same manner and to lation to proceedings in bankruptcy.”

the same extent and of the same authority, as

in respect of proceedings in bankruptcy.” “If it shall at any time appear to the court, “If it appear to the court, on satisfactory on notice, satisfactory evidence, and hearing, evidence, that a composition under this section that a composition under this section cannot, cannot, in consequence of legal difficulties, or in consequence of legal difficulties, or for any for any sufficient cause, proceed without injussufficient cause, proceed without injustice or tice or undue delay to the creditors or to the undue delay to the creditors or to the debtor, debtor, the court may adjudge the debtor a the court may refuse to accept and confirm such bankrupt, and proceedings may be had accordcomposition, or may set the same aside; and in ingly.” either case, the debtor shall be proceeded with as a bankrupt, in conformity with the provis. ions of law, and proceedings may be bad accordingly ; and the time during which such composition shall have been in force shall not, in such case, be computed in calculating periods of time prescribed by said act.

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DIGEST OF CASES.

(No. 2.

orders. In involuntary proceedings, however, the petitioning creditors, on whose motion an order to show cause has been issued, are not bound to prove anew, and in another and more formal manner, that they are such creditors, at a meeting for composition. 16.

10. IBID. · THE REGISTER IS AN OFFICER of the court, and as such he cannot act independently of its judgments or decrees, but must take notice of them. 16.

11. IBID. ATTORNEY APPEARING FOR CREDITOR. DISPUTE. PROCEDURE. - A duly authorized attorney appeared before the register at a composition meeting and offered to vote, as representing a creditor under a power previously given. At the same time another person, claiming to be an attorney, also appeared and produced a telegram which he stated he had just received from the principal revoking the former power, and requesting him to act in his place. Held, that it was the duty of the register to have deferred action until he could have examined, to his satisfaction the proofs of the revocation and new appointment. Ib.

12. IBID. ATTORNEY. - EVIDENCE OF AUTHORITY TO REPRESENT CREDITOR. When an attorney, duly admitted to practise in this court, appears before the register to represent a person in interest, he must be accepted as such, unless some one puts him to proof by a rule therefor to show his authority. All others must show formal powers of attorney as prescribed by the general orders. 16.

13. IBID. — EFFECT OF OMISSION OF ASSETS IN STATEMENT. The fact that some individual assets were omitted in the statement at the first meeting does not render the action taken thereat void. It is for the court to decide, in the light of the facts, upon the alleged concealment of assets, and upon the failure to name all of the creditors. Ib.

14. IBID. — DILIGENCE REQUIRED OF CREDITORS. While creditors should have the amplest opportunity to determine their action at each stage of the case, they must be held to the proper measure of diligence. If the provisions of the bankrupt act are to be so administered as to promote dilatory motions, its beneficence will disappear. Ib.

BILLS AND NOTES. 1. ADDITION OF NAME OF ANOTHER MAKER WITHOUT CONSENT OF ORIGINAL MAKER. After the execution and delivery of a promissory note by M., and without his knowledge or consent, it was signed by J. In an action against both by an indorser: Held, (1.) That the adding the name of another maker to a bill or note is a material alteration, such as will discharge the original parties not consenting, without regard to whether the alteration is injurious or beneficial to them, and that M. was discharged ; (2.) That J. became thereby the maker of a new note, and that the discharge of the other maker was sufficient consideration to support his promise, the law presuming that he knew that the effect of his signature would be to discharge M. Dickerman v. Miner, S. C. Iowa, Cent. L. J., January 5, 1877.

2. ALTERATION OF NOTE BY FILLING BLANKS. RIGHT OF BONA FIDE HOLDER. — In suit against the indorser on a promissory note, the defence

. being an unauthorized alteration, it appeared that in the bottom line, at the

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DIGEST OF CASES.

[No. 2.

end of the note, was the printed form, “For value received,” without a printed blank following it, in which to insert rate of interest (as e..g. 66 with interest from at the rate of per cent. per annum);” but that in the blank space, commencing on the line with and directly following the words, “ Value received,” and running obliquely upward to avoid the signature, were written, after the paper left defendant's hands, the words, “ With interest at the rate of ten per cent. per annum after maturity." Nothing in the color of the ink used in the inserted clause would readily excite suspicion. It was held that, although the note did not present a glaring case of alteration, yet enough appeared to authorize the court, under appropriate instructions, to leave to the jury the question whether the note was altered in such a manner as to put the plaintiff on inquiry at the time of his purchase.

In a case where a note, framed on a printed blank, was complete at the time it left the hands of the party sought to be charged, but was printed as to give an apparent authority to fill a blank space occupying the same position relative to the body of the note that an interest clause usually does, and the space left furnished ample room for inserting such clause, and the space was not filled in a way to attract observation, the court strongly inclined to the opinion that the defendant would be bound to an innocent holder. Iron Mountain Bank v. Armstrong, S. C. Mo., Am. Law Reg., December, 1876.

SO

a

CHATTEL MORTGAGE.

1. SEIZURE UNDER CHATTEL MORTGAGE WHERE IDENTITY IS LOST. - A chattel mortgage on a stock of goods allowed of their disposal in the usual course of trade, but stipulated that if the stock was not kept up to a certain amount as security for the mortgagees, the latter might enter. On breach of this condition a seizure and sale to the amount of the mortgage

debt was sustained against subsequent purchasers with notice, though the identity of the goods had been nearly destroyed. Leland v. Collver, S. C. Mich., Cent. L. J., January 5, 1877; Mo. West. Jur., January, 1877.

2. MORTGAGED CHATTELS AS A TRUST FUND. - A constantly changing stock of goods, subject to a chattel mortgage, is like a trust fund, which equity will pursue into reinvestments so long as it can be identified; subsequent purchasers with notice are in the position of trustees. 16.

3. INSURANCE OF MORTGAGED CHATTELS. Where a covenant to insure mortgaged chattels for the mortgagee's benefit is not kept, the mortgagee can insure, and add the premium, if reasonable, to his debt. Ib.

CONSTITUTIONAL LAW.

TAXATION OF PROPERTY OF CORPORATIONS. RAILROAD, ETC. The act of the Iowa Legislature, approved April 6, 1872, providing for the assessment of railroad property by the census board of the state, and the apportionment of such assessed value among the several counties, townships, &c., on the basis of the number of miles in each, is not an injunction of the constitutional provision that the property of all corporations for

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DIGEST OF CASES.

(No. 2.

pecuniary profit shall be subject to taxation the same as that of individuals. City of Dubuque v. Chicago, fc., R. R. Co., S. C. Iowa, West. Jur., December, 1876.1

CONTRACT.

a

AGREEMENT BY RAILROAD COMPANY THAT TELEGRAPH COMPANY SHALL HAVE EXCLUSIVE RIGHT TO OPERATE LINE FOR TWENTY-FIVE YEARS. — A contract made for sufficient consideration between a telegraph company and a railway company, stipulating that the telegraph company shall have for twenty-five years the exclusive right to construct and operate a telegraph line over the track and right of way of the railway company, is not void as against public policy, but is valid, and an attempted breach of the contract will be restrained by injunction. Western Union Tel. Co. v. At. f Pac. Tel. Co., D. C. Hamilton Co. Ohio, Am. Law Rec., January, 1877.

DAMAGES.

See STREET RAILWAY.

DEED.

PROPERTY CONVEYED TO WIFE WITH KNOWLEDGE OF PARTY LENDING PURCHASE MONEY. - Property was conveyed directly to A's wife, A borrowing part of the money to pay for it from B. Held, that if B loaned the money with full knowledge that the deed had been executed to A’s wife, the land in her hands could not be made to pay the debt her husband had incurred in its purchase. Thompson v. Thompson, S. C. Pa., Leg. Int., December 29, 1876.

GIFT.

See TRUSTS.

HOMESTEAD EXEMPTION. WATERCRAFT. — BOAT FURNITURE. – In proceedings against a boat, by name, under the watercraft laws of a state, upon final process against the craft, neither the owner nor his wife is entitled, under the homestead

1 Judge ROTHROCK, writing for the court, uses valued by the same officers, or is it provided by the following language : “ The objection made the Constitution that all property must be to the act in question is not that by its provi- taxed by the same method. sions any portion of the property escapes tax- “In our opinion the true meaning and intent ation of any kind. The act itself requires that of the constitutional provision in question is, the assessment shall be made at a cash value, that all property, whether owned by corporaand when thus made, it is liable to the same tions or individuals, shall be equally burdened tax as the property of individuals. For ex- with taxation, and that the legislature may adopt ample, the city of Dubuque may levy munic- different methods of ascertaining values, adapted ipal taxes to the same extent on the amount to the various peculiarities of the property. apportioned to it, as it may upon the property This has always been recognized as proper. of individuals.

And the power of the legislature to fix the situs " That it is within the power of the legislature of property for the purposes of taxation is not to fix the situs of property for the purpose of contined to personal property alone.” taxation, we have no doubt. The question then Beck and ADAMS, JJ., dissented. remains must all property be assessed and

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