The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-01-20

the relations OF business to great extent making
Its effect mora less felt in the households OF all bus
men. But bankrupt law extending aid aud COM
fort TO the honest debtor struggling in the grasp Of
pecunary difficulties and endorsements enabling him
to start aresh in the field OF business with prospect
not only Of meeting all prospective liabilities but or
ono day enabling him. if inclined TO pay or old
indebtedness ought to BIO simple, Inexpensive and
equally accessible and acceptable to creditor and debtor
IL ought to be so framed TO be egis shield the
poor and honest trader, struggling with difficulties and
lossos in trade. from the persecution of unrelcnting
creditors; and It ought at the time protect the
creditor from the schemes OF kIavsh and designing
men. Tho Bankrupt law as 1t now stands, though in
complete in many respects and not anording the full
measure OF relief needed by the business community
whether creditors debtors, is still working satisac
ory and its operation thus far has been attended with
beneficial results. Necessarily the principle upon
which tho law Is founded is wise aud good, but tho
act ITSELF in its provisions and IN the detail
OF lis working, is too cumbersome and too complicated
Its exponsiyeaoss Is the great objection and the principal
drawback TO its usefulness In this respect tho law
needs improvements and amendments, and legislation
must again be applied TO ii before be looked upon
AS the remedy for the evils which have long napercd
and retarded the wheels Of trade Congress In framing
the followed pretty closely the English Bankrupt
law and as it now appears, tho pity that did not
have made saiutary and acceptable.
From 1912 TO the month Of june 1867, quarter of
century, tho country without general and uniform
Law OF bankruptcy applicable TO all the states Of the
Union
Toe absence Of such law during considerable por
ton OF this period severely felt in all branches of
trade and business aud frequent attempts made
Congress from tme TO iesisaie the subject;
but from tho abuses which followed upon tho passage Of
the Bankrupt law OF 1871 there never sufficient
interest taken the subject to enable the friends of
such to carry II through At last Congress,
in the monta Of March, 1867. approved and passed
entitled ''An act to establish uniform system of
bankruptcy throughout the United States" That act
operation in the following june and It's work.
| ing Is the subject OF this article
PRELIMINARY MsAsuREs
By Of the provisions of the act tho District Courts
of the United states entrusted with the carry
ing out Of all the details OF this Bankrupt. law; consc-
| quently the Southern district OF New York
Judge Batchford has become chief administrator
and cxpounder 10 qualify hinsolr for this impor
Judge Batchford carefully studied only all tho
provisions OF the ac but also Tho present English Bank
rup, law after which is modelled. He ana.
ly2ci lis provisions, weighed them IN all their bearings
estma cd their elects and read almost thing
could bo read upon the subject HIS conclusions and
deductions have been of great benefit to the working OF
the law in this district ana have facilitated very much
the business OF registers and counsel 10 smplfy tho
! cumbersome and complicated legislation OF Congress
Judge Batchford has framed number OF rules and
for guidance OF practitioners his court ana
tho several bankrupt registers within his district These
rules very clear, very simple and in,eiligble,
and slnce their adoption the act is working in
way that could hardly be expected, considering
that in many Of its provisions it is very
ocuiar and difficult to understand with any degree Of
cloarness or precision Inc passage OF tho act was
looked forward 10 by lawyers as certain mine OF wealth
to such OF them as could secure good practice IN tito
Bankrupt Court u was thought there would DO CON.
pie rlgbQ f al md
that would BIO largely taken advantage OF by creditors
nsr debtors osakupy sSa
alike ignorant as TO how the law going 10
work, ana they were chary Of expcrinentng on It,
would take 10 put him Through and no conld not cs,i
the OF the operation The creditor the Other
hand was In like predicamcnt for he could aot tell
wnat would cost 10 institute compulsory proceedings
and hence hlndrod probably thousands restrained
from appealing To II IN any way. Debtors who took tho
first leap did not hesitate all tho inri-
Of the act the means Of dispeling tho
doabs and uncertainties that appeared be the way
OF a passage through tho Bankrupt Court aud since
thea advantage has been taken of the act IL
these difficulties Judge Biaciford had TO clear away in
the outset. aud which he has no" almost entirely re-
moved BY tho PRONUNCIATION Of his rules and orders and
the practice no has established IN his court But tho
great obstruction TO more perfect working OF the sys
TIN Is in It's cxpcnsiveness. This will be in the
that Notwithstanding the eagerness with which the
i passage Of tho act was anticipated mode
OF renefnoiwt ia Standing that the southern district
comprises tho great mart OF trade, the city OF
New York includes also Wcstchoster county ard several
of the Hudson river counties not quite elk hundred Pc
| tilious voluntary aud Compulsory, have been lled
the from the LIST day OF June 1867 TO the LIST o.
January, 1908 Inc poor and rendess debtor Who has
risked has all in Legitimate business VINO would pay
tue lrtng and mako eort enable himself
do nj the rlce OF perhaps many necessaiits nt
home, at the rat approach - the Bankrupt Court
nv an outlay OF $50 as security for registers fees The
registers leo IS IN realty but S2j bus where is tho
poor debtors security That tue oneg SIS viii not 10
swalIoyod ul in reg sierra oincdentalt cossY one OF
taose "resistar's bill OF costs" presents not less
| team twen,y.One items Of actual, printed debts In
| the bill before ~. assessed a poor widow,
rff GsFxft al ~ mud mn
important operator ia this poor mans makes M his
bn o. cost the tune OF s7i TO- inat Is, nc ADDS
the AMOUNT oG sesUry Looked 500 sci 10, and 10 his
aclual leo OF s25 he aids SIS 10 auercing the
innate poI,lioucr this $40 10 moro an the las
| atas nim one o. these charges y printed on the
list 'Incldenta." They not ncdenta but positiyo
cBsge 'iucidcn'a expenses, office, ccrs, lights,
stationery &c, $40 Then besides the fees OF
court whca ignt; the fecs 20 nnrshas 3y
OF advertising, heavy; postage OF letters 70
ced0fs fees 20 agnCcs oven where ssse;s require
| assignment, unnecessary ana oppressive ana thon
coao coar-o the fcas OF counsel who no doubt, iu
TIE face Of these heavy charges empors he wisdt tie
seeking benefit Of The act varies from $3.50 10 s22i
uiuous outiay or an impassoic barrier TO toe Bank
| rupt law.
I ia compulsory bankruptcy The expense Is even
heavier and appeal % the act becomes Iroporonably
beyond n not tho means the inclination OF
cases. Of the creditor Tho party pctoncd against TO
c9mpe hini to come cOuit and nie a schedule has
| risht to demand Trial by jury the question
raised by his creditor whether ne IS 70 DO declared
| r,nsTnpi or not The appeal TO trial may Do Just
ouough but 30 latitude is given the timo
I tue l1ry arh,rament comes Tnis may be made
eoU.,,,;e from a month 10 s.y moaihs Ard here tie
| iaal dcsect to compulsory action presents Itself.
1 Dsriog tho interval IRON ono month 10 six tho
I a1htor mas fga possession and control OF MS
| estate aud all his assets, without check HIM
| draucc dispose Of 4 or tnom just h peases.
Uncer these circumstances creditors will rarely
! avail thensenes % any 'bencl the act afford than.
There Is such defect this ia the English Bankrupt
law for the debtor there Is pcltoned against
an oca assignee nd INTERIM 10 the OF adjudica
too is appointed by the Court, and the property and
estate or business OF tho debtor Is protected ia tae
tefesL Of the creditor and the assignee holds II prop
ey TO DO returned to the debtor " the adjudication
against pettcD, or handed 10 the creditors II
tHe Adjudication 10 their favor. The pc0n-
provision theart supposing the assets of the debtor
\ would. together with the 0cbt he owes that
amount 10 repay him this outlay the wisdom OF having
recourse 10 tie act at all becomes Questionable.
| FIFTY PER CENT
The most ob econabe and the absurd clause or
provision IN whole blu is yct prospective one