New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-03-09
THE BANKRUPT ACT.

We quote. tor the information Of our
readers, the following extract from recent
number OF the New York Tribune:
As the operations of this most useful law
are being more clearly defined and under
stood, the community are becoming more
and more satisfied with its provisions.
We still think it susceptible of advan-
tageOus amendment. Especially do We think
the general orders made by the Supreme
Court require revision.
A misapprehension as to the effect of
what is called the fifty per cent" clause
has, We think, good deal detracted from
the usefulness of this law. 1t is supposed
that no petitioner is entitled to discharge
unless his assets pay fifty per cent OF the
claims against mis- estate. This is an error.
II is true that the act, as originally passed.
had such. a clause, the operation of which
was postponed one year. Before the eXplra.
ton of that year Congress passed an amend
atory act which repealed that clause. and
provided, in place thereof, that no petitioner
should be entitled to his discharge whose
petition should be filed after the first day OF
January, 1869, unless his assets should be
equal to fifty per centum of the claims proved
against his estate, upon which he shall be
liable as principal debtor unless the assent in
writing of Majority in number and value
of such of his creditors as shall have proved
their claims before the register be obtained.
There Is no provision for ascertaining the
value of these ''assets ;" prilnd fdcle, they
amount to the sum at which they are set
down in the schedules, and, in the absence
of proof 10 the contrary, it would obviously
be the duty of the Register to certify 9 con-
formity" in case such sums were equal TO
one-haIf OF the amount of the claims proved
before him. In large majority of cases,
no claims at all are proved and, in such a
case, the District Court for New Jersey held
that, although no assets were reported in
the schedules, yet, as no debts were proved
the petitioner was entitled to his discharge.
But, upon the other branch of the case.
the bankrupt has only to get majority in
nun Der and amount of such Of his creditors
as have proved their claims before the Reg
lister to sign simple consent to his dis
charge This, it would seem, would be no
very difficult task. The small proportion OF
the creditors who are accustomed to prove
their claim-perhaDs on an average not one
in thousand-renders it ia many cases no
task at all. I. is said that il proceedings
under the Massachusetts Insolvent act
which contains similar provision though
more complicated and dil1icult-not single
case has occurred in which the petitioAer
failed to get his discharge.
We trust this most wholesome act, which
has already had SO beneficial an effect upon
our commercial sy.tem, may from time 70
time pass under such revisions as to silence
all clamor FOR its repeal.
The position alluded to as taken by the
United States District Court for New Jersey
is considered sound and covers the cases of
/ many in this State. who can now file their
petitions IN bankruptcy with the reasonable
expectation that in due time they will OBJ
tain discharges from their debts, though
they can not pay any per Centum OF their
| indebtedness.
| In very large majority Of the cases here
| tofore filed in this district 40 claims at all
have been proven, and it is reasonable to
presume that the same course will hereafter
| be pursued by creditors, especially 10 cases
! that disclose no assets, and where creditors
would incur the useless expense of proving
| claims.
! Since the first day of January, 1869, not
over dozen petitions in voluntary bank
ruptcy have been filed in the District Of
Louisiana, and in all of these it has been the
| practice Of the Registers, before certifying
conformity with the provisions of the
| law, 10 await the consent Of d majority in
number and value Of creditors who had
proved their claims to the discharge of the
! bankrupts; but in every case no creditors
proved their claims until the bankrupt5
themselves. in order to comply with the
! supposed requirements of the law, solicited
some one Of them to do SO and consent to a
discharge.
STILL throughout the Union, 80 far as
voluntary bankruptcy is concerned, the law
! has been Of but little value during the past
year, and there is a growing disposition IN
the present Congress to repeal or at least
suspend again, the fifty per cent clause.
Whether, however, this is done or not, par
! ties without assets, and who not have any
claims proven against them, can obtain dis
charges irrespective, as l have said before,
OF ability 20 pay any per centum Of their
| debts.
Miss Kate Reignolos IN her sensation
! i x>FEf ? +ltl