New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-12-06
THE BANKRUPT LAW.
SHALL II BE REPEALED'-vIEws or A PHIIADrI-
PHIA MERCHANT.

SHALL IT BE REPEALED VIEWS or A PHuADrI-
PHA MERCHANT.
To the Editor OF The Tribune.
SIR A disposition is prevalent just now in
certain circles bring about repeal Of the bankrupt
law, and not few articles and communications have
appeared in the newspapers in advocacy OF that meas
ure. The principal grounds upon which repeal has
been urged that the provisions of the law are too
summary that the machinery Of it is too complex and
difficult to understand and that the administration OF
an estate In bankruptcy is tedious and ruinously ex
pensve. II these grounds OF complaint are all well
founded II does necessarily follow from such pre-
misses that the law should be repealed There is such
thing amending law and it is often wiser to amend
than TO repeal. II the general objects OF law are
beneficial and only the incidental provisions of IT in
convenient hurtful wisdom would seem TO dictate
such amendment OF those Incidental provisions 20
bring them into harmony with the general objects OF
the law No sane man of hs foot because it bears
a troublesome corn, would break machine because
some parts of it failed to work in complete harmony
with the rest upon frat trial
The really weounded objections to the presen, bank
rupt law do not apply the general scope and objects
OF IT, but only the provisions OF detathose which pre-
scribe the manner in which the general objects OF the
law shall carried into effect Any all OF those
be altered amended in suoh manner. experience
may have shown 10 be expedent or necessary. Thus
the machinery OF the law may be simplifed, and the adj
shorn OF the largest part OF the expenses which
so Objectionable at present bankrupt law that
be cheaply and expedtiously administered Is
sty in every mercantile communty-both TO the debtor
and the creditor. In other way the debtor be
assured of release from his creditors upon surrender
inc his property for their benefit. The numberless
frauds of one kind and another through Judgment bonds
and secretly held by favored creditors and not
unfrequenty by persons who not creditors at all,
kept in readiness for when insolvency should
appear yet fresh in the minds Of us
business men. On the other hand the humorous
OF honest debtors unable either pay obtain release
from heircredtors and therefore kept out of business
and prevented from again entering the field OF ambition
and enterprise. not forgotten The bankrupt law re-
heved both classes; and If amended IN tho re-
spects already mentioned. 1t may continue to relieve
and benefit both the debtor aud creditor Glasses for
years to come.
The Bankrupt law Is founded upon the mos; unex-
ceptionable morals, well as upon u mercantile
necessity. The property OF insovent or bankrupt
belongs TO his creditors and in proportion 10 the amount
their respective claims 1t is the aim of the law TO
teach aud enforce equitable doctrine, and do
without distinction OF persons The most trusted banker
the country the most obscure trader less than
all who intermediate are they ought TO be- upon
the same footing.
The Of Jay Cooke & Co.. now prominently before
the public eye is mentioned by most Of the writers
urging repeal Of the Bankrupt law example OF
its destructive tendencies The principal points made
are That not forced into bankruptcy, the firm could
have managed their property aud paid their cred
itors bat now the creditors will be turned away with
small dividend Those who write either do not, or do
not wish to- understand the subject. II simply i'm
possible even il there Bankrupt law. that tho
debtors who insolvent to the extent OF millions,
should be left to hold and manage their own property
If they we're solvent Creditors aud particularly the
depositors many of whose cases were or very great
hardship and urgency would have brought suits. OBJ.
tanned judgments levied executions upon the prop
ery OF the firm, aud thus enforced payment of their
claims in full. 10 the exclusion and detriment OF
those who held of. Toe debtors could not have
managed their property while liable TO such inter
ference II the debtors had assigned all their property
land this they could dO) for the beneht Of
their creditors 1t Is obvious enough that they could
longer manage it. The assignee would be required by
law to turn into cash at any sacrifice. and
the creditors year. The sacrifices in bankruptcy
very well exceed those which would attend upon
shers sales forced sales by assignee for creditors
under the law OF the State and these the aterna
But the possibility OF the debtors retaining
was there that the creditors would have been paid
IN full, that they would have secured so per
sny more than they will receive from the adj.
minisuaton III bankruptcy There was no such
may have been the over-ssngune hopes and
expectations OF new ins0lvents, of their ability
that such hopes and xpectations Of
are quite common II is proverbally that failing
merchant rarely realizes the beginning the extent TO
which his position and circumstances nave been
changed and the same may be said OF bankers. When
IL is assumed that Jay Cooke Co. could have paid ther
creditors IL let alone. much more IA assumed than the
facts OF their justify and much than could be
calculated from their exhibit OF assets at present. esti
mating actual values. But what the creditors
reasonably expect from the administration in bank
ruptcyf II the dividend TO be small one. ii Will be
because the value OF the property OF the firm has
been heretofore greatly exaggerated III the property
OF the bankrupts is OF any such value has been
sistenty represented, the dividend ought not to be
small.
Some OF the advantages Of the bankrupt law in its
provisions Of detail applicable TO this particular
may be noted just here The 43d section OF the law enables
threeourths In value OF the creditors who have proved
their avoid the election Of assignee and to
ributon Of 1t under the inspection and direction OF
committee Of the creditors to be appoHted at their first
meeting Now, then II it be true, has been often
that than threefourths In value OF the
creditors of Jay Cooke Co. are united III opinion and
purpose with the bankrupts to the best time aud
manner OF disposing OF the property for the
benefit OF all concerned, they readily carry their
plans effect They choose the trustees and ap
point the committee Of creditors who TO direct the
choose the times and the best OF dspOsng OF
1t; they may do all this with the least expense
possible, without the employment OF any complex
sachnery, and with just much or as little decay a.
they to prescribe for themselves IL does not
appear thus that the OF Jay Cooke Co. furnishes
any striking example that the tendencies OF tho
bankrupt laws are TO destruction. VS. 5.
Philadelphia, Dec. s, 1873.