signee claims the bonds as against the vendee, the latter is entitled to them, the bonds being all alike. (Hamilton, Ass., v. Bank, 18 N. B. R. 97; 3 Dill. 230; Fed. Cas. 5987.)

Where an insurance firm secures a loan for the bankrupt and he leaves a portion of the money in the firm's hands to pay premiums of insurance to be taken in the company which the firm represents, the money being left and the insurance being procured as a compensation for obtaining the loan, and half the amount is furnished and half the fund is applied to the payment of a premium, the assignee cannot upon action brought recover the balance of the fund, as the firm has a vested interest therein. (Newcomb v. Launtz, Ass., 18 N. B. R. 276.)

Where a merchant, who afterwards becomes bankrupt, buys goods when insolvent without any intention to pay for them, and fraudulently conceals his insolvency, and the vendor retakes possession of the goods and the merchant is adjudicated bankrupt, it was held that his assignee could not maintain an action to recover the value of the goods. (Don aldson, Ass., v. Farwell et al., 15 N. B. R. 277.)

Where delivery of exclusive possession of goods accompanies an absolute or conditional sale, a reservation of a lien or right of property in the vendor will not protect the goods from the vendee's creditors, and the assignee cannot, in an action brought, recover the value of the goods. (Enwer, Ass., v. Van Giessen et al., 19 N. B. R. 263.)

f. Upon the confirmation of a composition offered by a bankrupt, the title to his property shall thereupon revest in him.

A certified copy of an order confirming a composition constitutes evidence of the revesting of the title of his property in the bankrupt, and if recorded imparts the same notice that a deed from the trustee to the bankrupt, if recorded, would impart. (Sec. 21, g.) The composition must be confirmed if the judge be satisfied it is for the best interests of the creditors, that the bankrupt has not been guilty of any act which would be a bar to his discharge, and that the offer and its acceptance are made in good faith. (Sec. 12, d.)

Confirmation of composition.—The right of a party to the use of an alley, reserved to him so long as he should continue to own an adjoining piece of land, is not terminated by bankruptcy proceedings which are afterwards arranged, the land being reconveyed by the assignee. (Colie v. Jamison, 13 N. B. R. 1.) Where, in accordance with the terms of a composition, the assignee reconveys the land in question to the judgment debtor, the receiver appointed by the court in which the judgment was rendered has no claim upon the rents and profits of the land, it being the after-acquired property of the judgment debtor. (Conover et al. v. Dumahaut et al., 17 N. B. R. 558) Where a composition is effected pro

viding that upon payment of the composition notes the property of the bankrupt, in the possession of an assignee under a voluntary assignment for benefit of creditors, executed before petition in bankruptcy was filed, should be restored to the debtor, and payment of the composition is made, the bankruptcy court has no power to determine questions of title between the debtor and persons not parties to the proceedings. (In re Waitzfelder et al., 18 N. B. R. 260; Fed. Cas. 17048.) Where, after the appointment of an assignee, a composition is accepted and confirmed, creditors cease to have any interest in the estate, and it is the duty of the assignee to pay the balance in his hands to the bankrupt. (In re August et al., 19 N. B. R. 161; Fed. Cas. 645.)

Interpretation of bankrupt law. The national bankruptcy law should be interpreted reasonably and according to a fair import of its terms, with a view to effect its objects and to promote justice. (Blake et al. v. F. Valentine Co., 89 Fed. Rep. 691.)

THE TIME WHEN THIS ACT SHALL GO INTO EFFECT.

a. This Act shall go into full force and effect upon its passage: Provided, however, That no petition for voluntary bankruptcy shall be filed within one month of the passage thereof, and no petition for involuntary bankruptcy shall be filed within four months of the passage thereof.

[Act of 1867. SEC. 50. That this act shall commence and take effect as to the appointment of the officers created hereby, and the promulgation of rules and general orders, from and after the date of its approval: Provided, That no petition or other proceeding under this act shall be filed, received, or commenced before the first day of June, Anno Domini, eighteen hundred and sixty-seven.]

b. Proceedings commenced under State insolvency laws before the passage of this Act shall not be affected by it.

Supremacy of federal law. When a Congress has exercised its constitutional power to establish uniform laws on the subject of bankruptcy, the law passed under such power is paramount and exclusive and supersedes and suspends all state insolvent laws, at least until its repeal. (In re Langley, 1 N. B. R. 155; Van Nostrand v. Barr, 2 N. B. R. 154; Thornhill v. Bank of Louisiana, 5 N. B. R. 367; 1 Woods, 1; Fed. Cas. 13992; In re Merchants' Ins. Co., 6 N. B. R. 43; 3 Biss. 162; 20 Pittsb. Leg. J. 32; 4 Chi. Leg. News, 73; Fed. Cas. 9441; In re Independent Ins. Co., 6 N. B. R. 260; Holmes, 103; Fed. Cas. 7017; In re Safe Deposit and Savings Insti tution, 7 N. B. R. 392; Fed. Cas. 12211; In re Citizens' Savings Bank, 9

N. B. R. 152; Fed. Cas. 2735; In re Shryock et al, Ass., v. Bashore, 13 N. B. R. 481; Fed. Cas. 12820. Contra, Sedgwick v. Place, 1 N. B. R 204; 34 Conn. 552; Fed. Cas. 12622; Maltbie v. Hotchkiss, 5 N. B. R. 485, Chandler et al. v. Siddle, 10 N. B. R. 236; 1 Cent. Law J. 341; Fed. Cas. 2594.)

Extent of such supremacy.-The passage of a bankrupt law for the United States suspends the state insolvent law in force at the time of its passage, in so far as the provisions of the bankrupt law cover the subjects-matter of the provisions of the state insolvent laws. (In re Reynolds, 9 N. B. R. 50; Fed. Cas. 11723.)

Does not supersede.- A state law "to prevent fraudulent assignments in trust for creditors and other fraudulent conveyances" is not an insolvent law, and is not superseded by the federal bankrupt law. (Ebersole & McCarty v. Adams, etc., 13 N. B. R. 141.)

Effect of repeal.- When a Bankrupt Act is repealed, the state insolvent laws are again in full force and need not be re-enacted. (Lavender v. Gosnell et al., 12 N. B. R. 282.)

Effect on pending proceedings.-The adoption of a bankrupt law does not divest the state courts of jurisdiction over insolvent proceedings pending at the time of its adoption. (Lavender v. Gosnell & Tripp, 12 N. B. R. 282.)

Effect of prior acquired jurisdiction of state court.-The fact that a state court has taken possession of the property of an insolvent cannot defeat the execution of the bankrupt law. (In re Safe Deposit and Savings Institution, 7 N. B. R. 392; Fed. Cas. 12211.)

Common-law assignment.-A common-law assignment is not rendered void by the existence of a bankrupt law, ipso facto, and is therefore good against a judgment creditor who attempts to enforce his judgment by garnishee process against the assignee. (Cook et al. v. Rogers, etc., 13 N. B. R. 97.)

Winding up affairs of insolvent corporation.-Although the law under which a state court undertook to collect and distribute the assets of an insolvent corporation did not provide for discharging, or purport to discharge, the debtor from its liabilities, such proceedings are in contravention of bankruptcy law. (In re Merchants' Ins. Co., 6 N. B. R. 43; 3 Biss. 162; 20 Pittsb. Leg. J. 32; 4 Chi. Leg. News, 73; Fed. Cas. 9441.) See also generally, ante, pp. 8-10, §§ 11 and 23.

TITLE III.

THE NATIONAL BANKRUPTCY LAW OF 1867 AND AMENDMENTS.

AN ACT to establish a uniform System of Bankruptcy throughout the United States.1

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the several District Courts of the United States be, and they hereby are, constituted courts of bankruptcy, and they shall have original jurisdiction in their respective districts in all matters and proceedings in bankruptcy, and they are hereby authorized to hear and adjudicate upon the same according to the provisions of this act. The said courts shall be always open for the transaction of business under this act, and the powers and jurisdiction hereby granted and conferred shall be exercised as well in vacation as in term time, and a judge sitting at chambers shall have the same powers and jurisdiction, including the power of keeping order and of punishing any contempt of his authority, as when sitting in court. And the jurisdiction hereby conferred shall extend to all cases and controversies arising between the bankrupt and any creditor or creditors who shall claim 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

1 This act, together with the act of June 22, 1874, and all acts in amendment or supplementary thereto or in explanation thereof, were re

pealed by the act of June 7, 1878, to take effect September 1, 1878 (20 St. L 99).