with his bankruptcy as he or they may think proper for the interest of the creditors. They shall have power to execute all documents under seal or otherwise necessary or proper to convey the property sold by them to the purchaser.

§ 1803. The assignee or assignees shall immediately after their election or appointment file with the clerk of the court a list of all the assets that have come to their possession or knowledge. They shall make as many dividends of said estate as they may think proper, not to exceed five, among the creditors who have proved their claims, without priority or preference: Provided, however, That all debts due the Government of Hawaii shall be paid in full before any dividend is declared, and provided also, that any employee or servant of a bankrupt shall be entitled to receive in full not more than one month's salary or wages due him at the time of the failure or bankruptcy of his employer.

EFFECT OF BANKRUPTCY.

§ 1804. The bankrupt shall be divested of all his title and interest in his property from the day of his failure (except the necessary clothing of himself and family and such other necessaries, not to exceed the value of three hundred dollars, as the judge may designate), and every assignment, conveyance, or transfer of his property made by him after he shall have become insolvent or committed an act of bankruptcy, except upon a good consideration to a bona fide purchaser having no reasonable cause to believe him to be insolvent or bankrupt or in contemplation of insolvency or bankruptcy shall be void, and the property so transferred may be recovered and disposed of by the assignees for the benefit of the creditors.

§ 1805. Upon the filing of a petition as provided in sections 1790 and 1791, all civil suits pending in relation to and all executions or attachments laid upon the bankrupt's property shall be stayed: Provided, however, That any bankrupt may be arrested and imprisoned as a fraudulent debtor upon the sworn petition of any creditor setting forth sufficient cause for such arrest and imprisonment. If any bankrupt shall refuse to deliver or surrender up to the assignee or assignees of his estate any of his effects, books, property, or papers, or shall refuse to answer any question (that may be legally put to him) upon any examination had in his proceedings in bankruptcy, the judge before whom the proceedings are pending may commit such bankrupt to prison until he makes such delivery or surrender or answers such questions.

§ 1806. If any bankrupt has committed any of the offenses hereinafter enumerated, the court may at the examination of the bankrupt, or on the hearing of the application for his discharge by order under seal of the court, adjudge said bankrupt to be imprisoned for any term not exceeding six months, with or without hard labor-that is to say, if the bankrupt (1) has carried on trade by means of fictitious capital; or (2) could not have had at the time when any of his debts were contracted any reasonable or probable ground of expectation of being able to pay the same; or (3) has with the intent to conceal the true state of his affairs willfully omitted to keep at any time proper books or accounts; or (4) has within three years before the commencement of the bankruptcy failed to keep usual and reasonable books and accounts setting forth truthfully the state of his business transactions; or (5) has put any of his creditors to unnecessary expense by

frivolous or vexatious defense to any action or suit to recover any debt or money due from him; or (6) has in incurring any debt or liability obtained credit under false pretenses or by means of any other fraud; or (7) has with intent to defraud his creditors, or any of them, made or caused to be made any gift, transfer, or deliver of, or any charge on his property; or (8) has with intent to defraud his creditors concealed or removed any part of his property since or within two months before the date of any unsatisfied judgment or order for payment of money obtained against him. The bankrupt may appeal to the supreme court from any order or conviction under this section by perfecting his appeal within ten days after such order or conviction.

DISCHARGE OF BANKRUPT.

§ 1807. Every bankrupt who shall have surrendered, discovered, and delivered over to the assignee or assignees all his property, real and personal, may, after the expiration of six months from the date of his adjudication as a bankrupt, apply to the court for a discharge from all his debts. Upon application for such discharge the judge shall order notice to be given by an advertisement of two weeks and also by mail to all creditors who have proved their debts to appear on the day appointed by such advertisement and notice and show cause, if any they have, why a discharge should not be granted to the bankrupt. 1808. No discharge shall be granted, or if granted be valid, in any of the following cases:

1. If the bankrupt has willfully sworn falsely in his petition, schedule of inventory or upon any examination had in the course of the proceedings in bankruptcy.

2. If the bankrupt has concealed any part of his estate or books or writings relating thereto, or has been guilty of any fraud or negligence in the care, custody, or delivery of the same to his assignee.

3. If at any time he has mutilated, destroyed, altered, or falsified any of his books, documents, papers, writings, or securities, or has made or been privy to the making of any false or fraudulent entry in any book of account or other document with intent to defraud his creditors, or has removed, or caused to be removed, any part of his property with intent to defraud his creditors.

4. If the bankrupt has made any fraudulent payment, gift, transfer, conveyance, or assignment of any part of his property or has lost any part thereof in gaming, or has admitted a false or fictitious claim against the estate.

5. If the bankrupt, having knowledge that any person has proved such false or fictitious claim, has not disclosed the same to his assignee within one month after such knowledge.

6. If a bankrupt, being a merchant or tradesman, has not at all times after the approval of this chapter kept proper books of account. 7. If the bankrupt, or any person on his behalf, has at any time during the stage of the proceedings influenced the action of any creditor by any pecuniary consideration or obligation.

8. If the bankrupt has, in contemplation of becoming bankrupt, made any pledge, payment, transfer, assignment, or conveyance of any part of his property, directly or indirectly, absolutely or conditionally, for the purpose of preferring any creditor or person having a claim against him, or who is or may be under liability for him, or for the purpose of preventing the property from coming into the hands of the assignees, or of being distributed in satisfaction of his debts.

9. If the bankrupt has committed any fraud in the contracting of his liability.

8 1809. Any creditor who has proved his claim, opposing the discharge of any bankrupt, shall file a specification in writing of the grounds of his opposition, and the judge shall thereupon proceed to hear and determine such objections and specifications.

$ 1810. Before any discharge is granted, the bankrupt shall take and subscribe an oath to the effect that he has not done, suffered, or been privy to any act, matter, or thing specified as a ground for withholding such discharge, or as invalidating the same if granted.

§ 1811. If it shall appear to the judge that the bankrupt has in all things complied with the requirements of this chapter and that under the provisions thereof he is entitled to a discharge, the court shall grant him a discharge from all his debts, provided, however, that such discharge shall not apply to such debts as have been created by fraud or embezzlement, or by defalcation, as a public officer, or while acting in any fiduciary capacity.

$ 1812. Any person interested may except to any decision of the judge in proceedings under this chapter and appeal therefrom to the supreme court, provided such party give notice of his appeal within five days after the rendition of such decision and file a bond within said five days in the penalsum of one hundred dollars with the clerk of the court, conditioned for the payment of all costs arising from said appeal in case it shall not be sustained.

DISCHARGE OF ASSIGNEE.

$ 1813. The judge may at any time, upon the motion of one or more creditors who have proved his or their claims, require the assignee or assignees to file his or their accounts, and if he or they have funds subject to distribution may require him or them to distribute them forthwith. The judge may remove any assignee at any time for cause shown, and the assignee so removed shall immediately deliver to his associate assignee, or to the assignee appointed in his place, all funds, property, books, vouchers, or securities belonging to the bankrupt estate in his possession, without charging or retaining any commission or compensation for his services.

§ 1814. Preparatory to the final account and dividend, the assignee or assignees shall submit his or their accounts to the judge and file the same, and shall thereupon give notice to all the creditors who have proved their claims that he will apply for a settlement of such accounts and for a discharge from all liability as assignee or assignees at a time specified in such notice. At the hearing the judge shall audit the accounts and any person interested may appear and contest the same. The judge may thereupon, at his discretion, pass the accounts and order a dividend of any portion of the estate remaining undistributed, and shall discharge the assignee or assignees.

8 1815. The costs of proceedings under this chapter, except in cases where the petitioner fail to prove the person petitioned against a bankrupt, shall be borne by the bankrupt's estate.

§ 1816. The assignee or assignees shall be allowed ten per cent on all moneys received and paid out up to and not exceeding one thousand dollars; and five per cent on all sums over one thousand dollars; and he or they shall be allowed all other reasonable expenses incurred in the administration of their trust.

PARTNERSHIPS AND CORPORATIONS.

§ 1817. Two or more persons who are partners in business may be adjudged bankrupt, either on the petition of such partners or any one of them, or on the petition of one or more creditors of the partnership, in which case an order shall issue as provided by this chapter, upon which all the joint stock and property of the partnership, and also all the separate estate of each partner, shall be taken, except such parts thereof as may be exempt by law from levy and execution, and all the creditors of the partnership and the separate creditors of each partner shall be allowed to prove their claims, and the assignee or assignees shall be chosen by the creditors of the copartnership. Such assignee or assignees shall keep separate accounts of the joint stock or property of the copartnership and of the separate estate of each partner thereof; the net proceeds of the joint stock shall be appropriated to pay the creditors of the copartnership, and the net proceeds of the separate estate of each partner shall be appropriated to pay his separate creditors, and if there shall be any balance thereafter such balance shall be added to the joint stock for the payment of joint creditors.

§ 1818. In all other respects the proceedings as to partners shall be conducted in like manner as if they had been commenced and prosecuted by or against one person. If the petition be filed by less than all the partners of a copartnership those partners who do not join shall be proceeded against in the same manner as in the case of the other debtors who are required to show cause upon a creditor's petition. §1819. The provisions of this chapter shall apply to corporations, and upon the petition of any officer of a corporation duly authorized by a vote of the board of directors or trustees at a meeting specially called for that purpose, or by the assent in writing of a majority of the directors or trustees, as the case may be, or upon a creditor's petition made and presented in the manner provided by this chapter, the like proceeding shall be had and taken as are provided in the case of debtors. All the provisions of this chapter which apply to debtors shall apply to each and every officer of any corporation in relation to the same matters concerning the corporation. Whenever any corporation shall be declared bankrupt all its property and assets shall be distributed among its creditors.

NOTE TO CHAPTER 116.

§ 1790 is S. L. 1888, ch. 22. S$ 1791-1793 are S. L. 1884, ch. 35. SS 1794-1795 are S. L. 1888, ch. 22. § 1796 is S. L. 1892, ch. 93. § 1797 is S. L 1888, ch. 22. § 1798 is S. L. 1892, ch. 93 and S. L. 1888, ch. 22. $$ 1799-1800 are S. L. 1884, ch. 35. 1801 is S. L. 1892, ch. 93. §§ 1802-1804 are S. L. 1884, ch. 35. §§ 1805-1806 are S. L. 1888, ch. 22. §§ 1807-1815 are S. L. 1884, ch. 35. § 1816 is S. L. 1888, ch. 22. § 1817-1819 are S. L. 1884, ch. 35.

Cases in Hawaiian Reports:

Proof of bankruptcy (§§ 1790-1792): Pelly v. Waldo, 1 Haw., 32; Fallon v. Robinson, 2 Haw., 227; Bolles v. Padeken, 3 Haw., 664; Peacock v. Lovejoy, 5 Haw., 231; Bankruptcy Padeken, 6 Haw., 169; Re Aldrich, 9 Haw., 237; Re Tai Wo Chan, 9 Haw., 507.

Assignee and proof of claims (§§ 1796–1803): McDonald v. Green, 5 Haw., 325; Kerr v. Hyman, 6 Haw., 308; Austin v. Michiels, 6 Haw., 595; Hopper v. Parke, 7 Haw., 185; Re Richardson, 9 Haw., 488; Re Tai Lung, 9 Haw., 128.

Effect of bankruptcy (S$ 1804-1805): Raymond v. Dole, 4 Haw., 232; Spencer v. Parke, 4 Haw., 452; Hackfeld v. Ing Choi, 5 Haw., 136; West v. Kerr, 5 Haw., 445; Parke v. See Hop, 6 Haw., 747; Parke v. Austin, 7 Haw., 79; Bankruptcy On Chong, 7 Haw., 377; Castle v. Smith, 7 Haw., 579; Damon v. Dickson, 7 Haw.,

694; Kamakuolua v. Thow Choy, 8 Haw., 245; Bankruptcy Johnson, 8 Haw., 730; Cannon v. Poor, 10 Haw., 576.

Conveyances in fraud of creditors (§ 1804): Fallon v. Robinson, 2 Haw., 227; Parke v. Lau Ng, 5 Haw., 515; Bishop v. Davies, 6 Haw., 520; Lenehan v. Akana, 6 Haw., 538; Cartwright v. Hoffnung, 6 Haw., 601; Smith v. Castle, 6 Haw., 697; See Hop v. Soper, 7 Haw., 4; Cook v. Dayton, 8 Haw., 8; Vierra v. Hackfeld, 8 Haw., 436; Macfarlane v. Spencer, 8 Haw., 645; Jones v. Norton, 9 Haw., 444; Bossee v. Branco, 10 Haw., 335; Lose v. Davies, 10 Haw., 591.

Imprisonment of bankrupt (§ 1806): Re Ahung, 9 Haw., 448.

Discharge of bankrupt (§§ 1807-1812): Bankruptcy Allen, 6 Haw., 146; Bankruptcy Gonveia, 8 Haw., 253; Alee Wong Leong, 8 Haw., 442; Re Borba, 9 Haw., 442. Discharge of assignee (§§ 1813-1816): Bankruptcy Aiona, Haw., 203.

CHAPTER 117.

COMMISSIONERS OF PRIVATE WAYS AND WATER RIGHTS.

§ 1820. The word "commisioner," wherever used in this chapter, shall refer to the commissioner of private ways and water rights. The word "court" shall refer to and mean the circuit or supreme court, as the case may be. The word "party" or "parties" shall refer to and mean the respective parties to the controversy before the commissioner or court. The word "controversy" shall refer to and mean the matter or question at issue before the commissioner or court. The words "private individuals or persons" shall relate to and mean either individuals, companies, or corporations, the commissioners of crown lands, or any others except the government.

§ 1821. There shall be appointed by the governor, in each election district of the Territory, one competent person to act as commissioner of private ways and water rights: Provided, however, That nothing herein shall prevent the appointment of one person for two or more districts, if the same can be done without prejudice to the rights of the inhabitants thereof.

No person shall act as commissioner in any case in which he shall have a direct personal interest, or where he shall have direct business relations with either party, or shall be connected with either by ties of relationship of blood or marriage. In case of disability from these or any other cause, a commissioner pro tem. shall be appointed at once by the governor. Any vacancy shall be filled as soon as possible by the said governor.

§ 1822. It shall be the duty of said commissioners within their several districts to hear and determine all controversies respecting rights of private ways and water rights between private individuals, or between private individuals and the government. Any person or persons interested, or the government, may apply for the settlement of any rights involved hereunder, whereupon the commissioner shall issue a written or printed summons in like form as that used in the district courts to the party or parties defendant. It shall be personally served upon each landowner or occupant having an interest in the controversy, whenever such owner or occupant can be found. If, however, such owner or occupant can not be found for such service, the commissioner shall cause notices in the Hawaiian or English language, as the case may be, to be published either by posting upon the premises the owners or occupants whereof can not be found, or by insertion in one or more newspapers, which publication shall continue for at least two full weeks prior to the date set for hearing. Such notice shall designate the time and place of hearing, shall indicate the nature of application made, and shall notify all parties interested