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Abstract of iJie Bankrupt Law of Hamburg. [Nov. 1 , 



Eurnpe. Tiie Britifli merchant frecjutnit- 

 \y 'iijids himt'elf at a lofs what nieafures to 

 take when unfortunately he has to do 

 with a fufpicJous debtor or bankrupt re- 

 fidiiig ill Hamburg. It is not feicioni it 

 happens that qucftionb relative to fuch 

 caics nuift be Cent tliither in order to get 

 them relolved by fome lawyer. 



During my ftay in th« United King- 

 doms ol" Great Britain, I liavc been fa- 

 voured with fo nuich valuable informa- 

 tion from intelligent merchanrs, that I 

 flatter myfelf with the thought of fliewing 

 them a kind of acknowledgment, by com- 

 inuuicatiiig a fliort account of the Ham- 

 burg bankl•upt-la\^', particularly of what 

 may be ufel'ul to an Enghlli merchant. 



About the jniddle of the eighteenth 

 «entury, when the trade of the city of 

 Hamburg was very conlidcrably increaf- 

 _ ing, it was found neceliary to eflablifli a 

 new code of bankrupt-laws, which 

 fliould fuperfcdc thofe then in ufc, taken 

 principally from the Roman law. In the 

 jcaj- 1753 the law refj)efting bankrupts 

 (Fdllittn OrdnuHg,) now in foice was 

 confirmed by the Senate and citizens. 



All change of the debtor's property is 

 ftopped from the moment the commilllon 

 is opened. The management of the 

 eflate is entrul'tcd to alViguccs, under the 

 aulhority of two commiiVioners ehofen 

 from the body of the Senate, and u fworn 

 attuai-y takes minutes of their proceed- 

 ings. The allignees collefit and elaihly 

 the property of the bankrupt, und make 

 tlie dividends in proper time. 



It is a point of the greatcft importance 

 to tlie creditors lo afcertain the very mo- 

 ment when the diniiiuUion of the proper- 

 ty of the debtor is beginning, in order to 

 |)revent partial payments and fraudu- 

 ent conveyances, to the injury of the 

 creditors ; or, in other words, it is of 

 the utmolt confcqucncc that no delay 

 takes place in opening the commiflion. 

 With this \\cw the law has invefted the 

 creditor with certain rights for the pur- 

 pofe of forcing a debtor to a declaration 

 of his infolvency, and to compel him to 

 make a fnrrender of his property. 



A peribn abroad who had fent ofT 

 goods, may, by virtue of the 25th article 

 of the Hamburg Bankrupt-law, (lop fuch 

 goods in trcrifiiU, on hearing of the cou- 

 fignte's attual or apparent infolvency. 

 He has only to fend the fccond bills of 

 lading to one of his correfpond^nts, or 

 give liim written inftrucHions to flop tiio 

 goods, cither of which wil! have the pre- 

 JHw'cnce to the ijrll bill of ladinjj jn Uve 



hands of the debtor. The captain oa 

 mailer of the velVel is obliged to deliver 

 the goods according to luch fccond bill 

 of lading or w ritten inflruttions ; but th» 

 correfpondent mult take care that th« 

 debtor does not get the ftart of him. 

 Howe\cr averlc the law may be to deem 

 any individual infolvent, yet eafy it itf 

 for a creditor to treat him as fuch. 

 He can, by the means already men- 

 tioned, prevent the delivery of good* 

 not only in cafes where the configneo 

 may liavc refufed to honour his draft, but 

 even if he fhould only have heard of his 

 inlbhency. It is however of importance 

 to obferve, that this can only be done 

 whilft the firil bill of lading is" ftill in the 

 hands of the conlignee ; becaufe in Ham- 

 burg a bill of lading, being conlidered as 

 a reprefentative of the goods themlelves 

 may be alienated, or lodged as a fecurity. 

 Any creditor has the power, where 

 there are proofs of attual infolvency, (or 

 of acts of bankruptcy,) to demand the 

 immediate opening of a commillion. 

 However, in order that the public decla 

 ration of infolvency may not altogether 

 depend upon the difcretion of either the 

 creditor or the magillrate, the law has, 

 in article 1, defined w-hat llmll be conli- 

 dered an act of bankruptcy (Anzcige der 

 InJ'iitvcntz). 



If after lenience is palled in a court of 

 juftice for the payment of a debt, a per- 

 fon 1ms no mo\eables or effefts to dif- 

 charge it ; or if, iu confequcnce of fuel* 

 default, the creditor obtains from the 

 court an order of arreft ( FrtizctttlJ 

 againft him ; or if at the time a debt is 

 fued for at law, the debtor fliould make 

 conveyances, or conceal any of his ef- 

 fects ; or if a perfon fulfers a bill upon 

 him to be protelted for non-payment ; 

 or if he privately calls his creditors toge- 

 ther for the purpofe of compoundmg 

 with them ; each of thcfe acts legally , 

 conilitutes an att of bankruptcy. Any 

 other circuniitances w hich may appear to 

 be acts of bankruptc}', veil with the 

 Judge for his deciiion thereon. 



It feldom happens that a debtor is 

 called upon by his creditors to declare 

 himfelf infohent, as this is commonly 

 done by himfelf in a petition to the Se- 

 nate, pvaying them to open a commillion. 

 Until this has been done, the debtor has, 

 during the flate of his actual infolvency, 

 full power lo do as he pleafes, as well 

 with his own properly as with what he 

 is entrufted wiih. He can prelc- one 

 creditor to atiotliei", make payments in 



psuV 



