Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1872-02-20
The Bankrupt Law.

The memorial to Congress to repeal
the Bankrupt Law, introduced in the
by Hon. A. Il. Bushnell
of this county, came mp for discussion
in the Assembly on Wednesday last.
Mr.. BUSHNELL said he dld not
intend any lengthy remarks, but
called attention TO some objections
to the bankrupt acts continuing in
force. 1t was passed in 1867, and
had continued in force longer han
any former one, quite as long asthe
exigencies Of the country demanded.
Ii is more stringent than any pre-.
vious one. and no Law 90 our statute
hooks IA so unmixed a curse. I'm
-'vas debtors took advantage
10 defraud and cheat their creditors
On the other hand, it gave creditors
q power to Cypress their debtors in a
manner repugnant 10 every feeling
OF an American citizen, of which
some instances were given bearing
very hardly on country dealers. Io
one case a firm with $500, 900 assets
and debts of $4,000 was almost
ruined by proceeding under this
law. Attempts Were made to enforce
IL against solvent rather than insol-
vent debtors. costs and proceedings
eating up so much Of the assets in
the former case THAI little was left
tor tho debtor. 1t was no reason for
putting halter round mans neck
that 1t may not DO for the interest off
those having hold Of the other end
to pun on it. The law was exceed
Ingly dangerous by the power it gave
mans enemies. He thought it
would treble the evils Of financial
ctisie, creating pressure which
would carry disaster to the remotest
quarters OF the land. Tvs provisions
brought odium on the federal courts
by making them the place for actions
OF a vexatious and oppressive char
acter Tor the most trivial sums. and
making 1T the bitter alternative to
Fay unjust and fraudulent claims
rather than to contest them.
Mr. WINFIELD SMITH in an able
speech OF considerable length opposed
the adoption of the memorial. and
defended the bankrupt law, though he said II
materially diminished the business ard reduced
the compensation of members of his profes
sion. lie claimed that il was emphatIcally
the peoples law. lis provisions were simple,
ITS processes cheap, It's relief certain, ali its
provisions carefully arranged to secure the
best INTERESTS of all parties. II enabled The
honest debtor, alter paying all he could. 10 he
discharged from his debts by voluntary bank.
rupicy, which was great relief. In inyolnn-
tary bankruptcy the debtor was much less
liable TO be oppressed when all creditors. those
who crowded him and those who were lenient
slood on par, tuan when property was liable
TO De seized by attachment, and gave every
opportunity Tor compromise and eaui:a bic
arrangement OF all claims. II was a terror
only to rascals, who sought to put their prop-
erly out OF their hands TO cheat their credirors
It's provisions were as fair and Just as those of
probate proceedings, which il was geueraIlv
thought were about right. Its costs-while
narshdls' and Clerks ices might be larger than
lees IN justices courts, amounted to ;ess. he.
cause mere vas not such a mutiniicitv of
SUITS, and the costs were no comparison To the
equities and benefits of the system. The onIy
occasions OF complaint had been in su,fs
brought IN two or three cases to recover on
notes given 10 couple of bankrupt insurance
companies, use OF the law which he thouoh,
shou'a De corrected by an amendment, and
hoped the memorial would not be adopted
Mr.. BUSHNELL stated that the bill had
encountered unexpected opposition As
10 Inc bankrupt law limiting lawyers
business, lie claimed that of the no 200
suits brought under the bankIupt law.
the majority were such that respectable attor-
neys wou have nothing to DO with them.
large number OF these cases grew out of the
failure OF The Rock River Insurance Company.
winch ne believed was a fraud from beginning
10 end, but when a large number were put
together II made tempting business for an
attorney. There had been as many cases
brought under law in the United States courts,
as III all the circuit courts of the State. The
effects on the people were most disastrous. II
might as well be said that the small pox was
a good thing, because it limited other diseases,
as that the bankrupt law was good thing,
because 1t limited lawyers business !; as to the
c ann that this was an economical law he
thought 1t took $4,000 in costs this last year
from The people, but small part of whic
would have been otherwise made. IL did not
releVe people, debtors, from creditors, unless
lhey paid 90 cents on The dollar or two thirds
oi their creditors consented II was an
engine OF oppression for the collection of
debts, and this, he claimed, for independent of
attempted fraud, by forcing into involuntary
bankruptcy. The law needed much more
than "slight amendments" to make il satisfac-
tory to the people, and there was a loud call
Tor an expression of the Legislature of ITS
views as TO The workings OF this law, and
hoped the memorial would pass now.
The memorial passed by the following
Ayes 70, Noes d, absent and not voting 81.