New-York tribune., 1873-12-15
AMEND TIE BANKRrpT LAW.

rr9 IMPROVEMENT AID Not IT'S REPEAL NEEDED
SUGGESTIONS DRAWS FROM THE ESCIIsH STATUTE
To the Rditor Of The tribune
SIR: Much complaint is made Of that por-
ton os the Bankrupt act which permits debtors to be
thrown into bankruptcy petition Of their creditors
and Il Is proposed 90 repeal the whole act or az least 40
much thereof relates to Involuntary DahHrupry
Thss very much Ike burning the barn to get rid OF the
rats and other vermln II mnst be admitted that tho
present statute sometimes operates with extreme hard
ship not only TO debtors also to their creditors, ~
two or three dissenting creditors can prevent compo
sltion and settlement to which the majority are Wiling
to assent. But instead Of repeating the law chuey.
amend or add TO 1t such provisions as To mako IL sun
more eectual and beneficial to all honest debtors by
allowing liquidation and compromises asis done by the
present English Bankrupt act In that case an honest
debtor disposed to fairly, can by the assent OF
proper majority OF his creditors force the hardnearted
and refractory creditors To assent to fair copromiSe
will note some OF the provisions OF this Engi'h statute,
enacted IN 1869 and since the adoption oi our act o 1901
and call attention OF your readers thereto as not
only wise but humane especially at this present
time.
Bv Section 2G of the English Bankruptcy act The cred
itors OF debtor unable pay his debts may without
any proceedings in bankruptcy, resolve that COM
promise be accepted satisfaction Of the debts due
10 them The resolution must be passed by majority
in number and threefourths in value Of the creditors
purpose and confirmed by majority In snumber and
value az subsequent meeting TO be held not less than
seven nor more Ia days after the first meeting In
calculating the majority the purpose Of composition
creditors whose debts under $40 counted In the
majority In value but not In ninOer, ana tne Vas OF
estimated IN the same way ana soto
as In ordinary meetings III bankruptcy Ihe dcoof inus
attend at these meetings, unless preyented D schhes
and must schedule OF his assets ana QeDs ahd
the names and addresses OF his creditors, and must an
such questions as may oe pfopouhued 70 mn. In
Whpn
PROCEEDINGS of the meeting and the debtors ssheau.es
are 10 be presented 10 the register saiaFled Oecr
who inquiries resolution has been properly passed
and II he finds all things correct, makes the proper
record of the resolution and schedules, and the pro-
visions OF the compromise are then DindiR upoh an
creditors whose are properly set form Ia tno
schedues the absence OF fraud the cefuncate Oh Nho
register is conclusive to the regularity vi tAe pro-
ceedngs. ... ,s Ia
similar provision In our statute would DO
Of more benefit debtors at the present time tnin
repeal OF the provision relating To Involuntary pfoceed
ngs for it gives the majority IN number ana Eaiue lno
power accept compromise and TO cOmpel tue inhoT
its TO accept same; whereas II the statute DC re-
pealed unanimous consent must DC obtained 70 preFen
litigation aud the door may DC opened Ior she Ol
system Of prefeEtng creditors az the expense VI
Others. - ~
The English statute also simplifes all tho proceedings
IN bankruptcy, ana worthy OF careful study on the
Htt OF those Interested in tie subject and II our law
yers had examined this statute they would be more
ready to advise amendments to our Bankruptcy ACT
than TO recommend Its repeal The provisions or the
English statute relating 10 liquidation by arraDgepen
are also worthy Of notice The assignee or trustee unae
that may employ the bankrupt IN assisting 10 wina
up the estate, other provisions are uaue " snpJ
| proceedings and diminish expense. - u.
Let the Judiciary Committee In congress eAIinlno
tl1ts statute and try TO improve our OWL c. "'
81 Louis, No., Dec. 6, 1873.