attachment, or other lien, of a bona fide purchaser for value who shall have acquired the same without notice or reasonable cause for inquiry.

United States Compiled Statutes, pages 3449, 3450.

Section 1134.-SET-OFFS AND COUNTERCLAIMS. In all cases of mutual debts or mutual credits between the estate of a bankrupt and a creditor, the account shall be stated, and one debt shall be set off against the other, and the balance only shall be allowed or paid.

A set-off or counterclaim shall not be allowed in favor of any debtor of the bankrupt which (1) is not provable against the estate; or (2) was purchased by or transferred to him after the filing of the petition, or within four months before such filing, with a view to such use and with knowledge or notice that such bankrupt was insolvent or had committed an act of bankruptcy.

United States Compiled Statutes, page 3450.

Section 1135.-APPRAISAL AND SALE OF PROPERTY. All real and personal property belonging to bankrupt estates shall be appraised by three disinterested appraisers. They shall be appointed by, and report to, the court. Real and personal property shall, when practicable, be sold subject to the approval of the court; and it shall not be sold otherwise than subject to the approval of the court for less than seventy-five per centum of its appraised value.

United States Compiled Statutes, page 3451.

PART XII.

AUTOMOBILE LAW OF CALIFORNIA.

Section 1136.-IMPORTANCE OF THE SUBJECT. —California is the second state in the Union in the number of automobiles owned and used by its citizens. New York is first, California is second; and considering our beautiful climate, and the increased attention being paid to the building and condition of public highways, it is reasonable to expect that in a few years California, with relation to the ownership and use of motor vehicles, will be the first state in the Union. Consequently, the subject now given, "Automobile Law of California," is of very great importance and universal interest. In the following sections under the above subject will be found the law of California, so far as it has been enacted and decided in recent years.

Section 1137.-GENERAL LAW AND STATUTES. -California has some statutes, laws passed regulating the running of automobiles, the licensing of chauffeurs, etc.. which will be found in this subject. These statutory laws are not very many, and much of the law with reference to motor vehicles in this state, as elsewhere, rests upon general principles which include the rights and liabilities of those

or operate automobiles. In stating the general laws just mentioned, and their application to the subject of automobiles in California, the author desires to acknowledge the great assistance received from a new work for lawyers published at Washington in 1911, entitled "Law Applied to Motor Vehicles," by Charles J. Babbitt.

New Automobile Law.-A new automobile law for the State of California was passed by the Legislature at the 1915 session. It consists of 22 pages in the printed statutes of 1915, and is too long to be condensed into a printed slip. The new automobile law goes into effect at different times. That part of the law which relates to the creation and conduct of the State Motor Vehicle Department is in effect since August 9, 1915; and all the other provisions of the law will be in effect at midnight on the 31st day of December, 1915.

A complete copy of the new automobile law will be sent to any subscriber, without extra cost, upon application to the general offices of The A. J. Bledsoe Co., Underwood Building, San Francisco, Cal.

гог

right of the owner thereof to operate the vehicle, two dollars.
the registration of every automobile of less than twenty horse-power,
five dollars. For the registration of every automobile of twenty horse-
power and above, but less than thirty horse-power, ten dollars. For
the registration of every automobile of thirty horse-power and above,
but less than forty horse-power, fifteen dollars. For the registration
of every automobile of forty horse power and above, but less than fifty
horse-power, twenty dollars. For the registration of every automo-
bile of fifty horse-power, and above, but less than sixty horse-power,
twenty-five dollars. For the registration of every automobile of sixty
horse-power and above, thirty dollars. For the registration of motor
vehicles owned by or under the control of a manufacturer of or dealer
in motor vehicles, if such persons operate upon the public highways
not more than five automobiles, fifty dollars, and ten dollars for
every automobile in excess of five so operated. For the registration
of all of the motorcycles owned by or under the control of a manu-
facturer of or dealer in motorcycles who does not manufacture or deal
in automobiles, including five seals to be furnished with the certif-
cates of registration, five dollars. For the registration of every auto-
mobile and of the motor vehicles owned by or under the control of
a manufacturer of or dealer in motor vehicles, who applies therefor
during the period beginning with the first day of August and ending
on the thirty-first day of December, in any year, one-half of the
foregoing fees. For the substitution of the registration of an auto-
mobile for that of a vehicle previously registered in accordance with
the provisions of this act, two dollars. For the substitution of the
registration of a motorcycle for that of a motorcycle previously regis
tered in accordance with this act, one dollar. For every original
chauffeur's license, two dollars. For the renewal of any chauffeur's
license to operate automobiles, two dollars. For every additional seal
of registration or license, fifty cents. For every additional number
plate furnished to replace such plates as have been lost or mutilated,
or which are illegible, and for every additional number plate fur-
nished to a manufacturer of or dealer in motor vehicles whose busi-
ness requires more than five pairs of such plates, seventy-five cents.
For every additional seal furnished to replace such seals as have been
lost or mutilated, or which are illegible, and for every seal furnished
to a manufacturer of or dealer in automobiles for use on motorcycles

owned by or under the control of such persons, fifty cents; provided, however, that the state department of engineering may furnish with out charge copies of seals of registration and licenses to operate, and copies of other documents relating thereto, to officers of the state or of any court thereof or of a city or town therein.

(d) TRANSFER OF OWNERSHIP.-Upon the transfer of ownership of any motor vehicle its registration shall expire, and the person in whose name such vehicle is registered shall forthwith return the seal of registration to the state treasurer with a written notice containing the date of such transfer of ownership and the name, place of residence and address of the new owner. A person who transfers the ownership of a registered motor vehicle owned by him to another, upon the filing of a new application and upon payment of the proper fees, may have registered in his name another motor vehicle for the remainder of the calendar year; provided, the horse-power of such motor vehicle is the same as that of the motor vehicle first regis tered by him, or if the vehicle sought to be registered is a motorcycle; but if the horse-power of the automobile is greater than that of the automobile first registered by him, the applicant shall pay, in addition to the said fee, the difference between the fee paid by him for the said vehicle first registered and the fee for the registration of an automobile of the higher horse-power. A person who before the first day of August in any calendar year transfers the ownership or loses possession of an automobile registered in his name and who applies for the registration of another motor vehicle of less horsepower than that of the vehicle so transferred shall be entitled, upon payment of the proper fees set forth in section 7 of this act, to a rebate equivalent to one-half the difference between the respective fees for the higher and lower horse-powers, and a person under like conditions who does not apply for the registration of another automobile but who on or before the first day of September in the same calendar year files in the office of the state treasurer a written application for rebate shall be entitled to a rebate of one-half the fee paid for the registration of such vehicle; provided, however, that no such rebate shall be paid except upon a certificate filed with the state board of control, setting forth the facts, and signed by the state department of engineering, and that the rebate shall be paid out of the motor vehicle fund. The said department at its discretion, may assign to the motor vehicle of any person who surrenders his regis tration seal as herein provided and who desires to register another motor vehicle, the register number of the motor vehicle described in the surrendered seal. The said department shall furnish without charge to every person whose automobile is registered as aforesaid, who shall apply therefor two number plates of suitable design, each number plate to have displayed upon it the register number assigned to such vehicle, and one number plate of suitable design shall likewise be furnished by the said department for every motorcycle. If the said department shall determine at any time that for any reason a motor vehicle is unsafe or improperly equipped or otherwise unfit to be operated, it may refuse to register such vehicle, and said department may for a like reason revoke any registration already recorded. The horse-power of every automobile sought to be registered shall be determined by the said department, and such determination shall be final and conclusive. The registration of every motor vehicle shall expire at midnight upon the thirty-first day of December in each year.

(e) DEALER'S NUMBER.-Every manufacturer of or dealer in motor vehicles may make application to the state treasurer or his