New-York tribune., 1873-12-22
THE BANKRUPT LAW.
MODyrJc,T,oN If NOT REPEAL.

OLD AND NEW SYSTEMS.
The question of the repeal OF the Natiohai
Bankrupt law which has been precipitated upon the
business community by the passage OF the repea' o "
the House OF Representatives. exciting goon deai VI
discussion among merchants lawyers and others In TINS
city, and has already drawn forth remonstrances from
the merchants, two OF which have been pub
lished in TIE TRIBUNE. Conversation with sew
eral leading merchants. develops the fact
that the opposition to the total repeal OF the
law is gaining strength very rapidly. While they
all ask for modification OF the present law In several
particulars very be found to express an unqua-
fed opinion in favor OF its repeal. Those who do so
base 1t almost entirely on two grounds; first the
exorbant fees and expenses OF proceedings In bank
rptcy under the law exists and secondly the
fact that the law gives no advantage 10 vigilant
creditor who the trouble and expense OF looking
out for his own interests the careless or sleepy
creditor who folds his in dleness while others are
at work to secure their claims Some merchandise A. T.
Stewart decline to give their opinions ON the merits or
demerits OF the law for publication, or to sign petition
for against its repeal.
Among the frsnkest men whom THE TRIBUNE re-
porter encountered W. Goddard of No. 1888 Broad
way for 27 years prominent merchant in this city, He
sad that for the last three four days he had not met
single merchant who was In favor of total repeal OF
tie law and he thought no such man could be f0und
who had fully considered the subject and understood
the true interests OF the mercantile community Tine re-
peal OF the law would leave merchants at the mercy OF
rascas; it would restore the old condition OF things
under the. State Insolyent law where bankrupt mer
chant or one who perhaps desired to fail would make
an assignment choosing his assignee and prefer
ring his creditors many of them holding bogus claims.
while the great mass Of bona 1de creditors who
did not happen to be favorites OF the debtor
would be cheated out OF everything or perhaps
get five or ten per cent dividend. He believed that
the comparatively few failures during the panic this
Fall were attributable to the Bankrupt law greater
efforts made to AVOID bankruptcy than would have
been made under the State Insovent act, and those
who wished to commit fraud could see no opportunity
to do so under it, When debtor intended to defraud
his creditors he made arrangements to fail beforehand
but the poor success he meets with in making money
out OF q settlement under the Bankrupt law mad
tendency to discourage men In attempting IT, Ihe ad-
vantages of the Bankrupt law were " great extent
IN enabling creditors force fair settlement without
resort to bankruptcy MI Goddard cited the case
of Western house that had made arrange
ments to fail. and came on 70 New-York
and offered their creditors 33t per Oent II was
refused, aud proceedings begun under the
Bankrupt law, whereupon the house discovered that
they could pay 60 per cent aud their debts which
they were allowed to do and continue business. Had
there been bankrupt law in force they would have
forced settlement their own terms, or in default OF
that would have made assignment, preferring their
creditors and probably in the end cheating the honest
creditor out OF all but nominal dividend. Mr. Goddard
said he had never known a where the creditors
we're severe toward honest debtor; they always
expect and willing to leave him margin, so that
the objections to the law on account OF its possible
hardship for honest creditor had little force. What
the merchants wanted was an amendment or several
amendments the law, such would reduce the fees
and expenses in proceedings in bankruptcy and
simplify them. There should also be some
devised by which the creditors. or threefourths
OF them IN number aud amount could be permitted
manage estate by committee Of their own chOos
ing without interference by the court III all the details
There should also be "A clause preventing judge in
bankruptcy from controlling the disposition OF coat
erals pledged under written contract for the loan of
money This interference by court to prevent the sa lie
in accordance with written contract made
between the parties calculated TO undermine the
whole business Of NewYork as at present conducted
Mr.. Goddard thought that three four merchants,
with one sound lawyer aud one Register in Bankruptcy
like Mr.. Dayton, could get together and in one day
could agree upon amendments to the Bankrupt law
which would satisfy the mercantile community, and be
a great improvement on the law as now existing. But
the entire repeal OF the law would certainly be preu
dcal interests Of all honest business men, and the
current in this city was now setting very strongly
against 1t.
THE TRIBUNE reporter called on Isaac DAYTON, the
gentleman referred TO by Mr.. Goddard, who ia OF
the SIX Registers in Bankruptcy for this city. Mr. Day
ton was rather 10th to give his on the question Of
the repeal of the law lest he should be charged with
being an interested person. He said that from his
knowledge of the practical workings of the law he was
satisfied that ii of great advantage 10 the business
and its total repeal would be public dis
aster. At the same time there were several needed
amendments TO the law and among them was reduc-
OF the fees OF registers and other officials and gen
era curtament far as practical, of the expenses
of proceedings in bankruptcy. As an example
the advertisements that appear in THE TRIBUNE
this morning Of meeting OF tne creditors OF several
what wOud have been the result in the Of these
firms had there been no bankrupt law aud the creditors
In the first place there would have beena general scram
Bile OF all the creditors after the property OF these firms
this, there would have been an assignment by the
debtors themselves each appointing his own assignee
he forgotten by opponents of the Bankrupt
the law of this state, at least would admit OF preferen
Of Of course that il the Bankrupt law were repealed
tho property would be distributed equally among the
Repeal the Bankrupt law and the old system Of raudu
preferential assignments would take Its place IN this
State at least In other states the same thing would be
achieved by confessions OF Judgment, or colsve Judg
ments IN behalf OF fayorte creditors. The General
Bankrupt law was not made for the special case OF
panic like that we have recently had but to meet the
every day business wants OF the whole people OF the
country Yet in case OF panic, were there
no bankrupt law, the creditors who force o
debtor into bankruptcy would put eherin in
possession Of his property or else force him
TO make an assignment, and this assignment would,
question: give the preference TO those creditors
whom the debtor wished to favor. Even the case OF
Bird .(rnne Co., which, more than nything else
caused the present opposition to the Bankrupt act
shows the advantages OF the law TX the securities the
sae OF which enjOned IN that ease had been pre-
ciptated upon the market the result would nave Deeh
far worse tnan anything Witnessed during the panic
but by delay in the sale or the securities large adj
vance In their ,value took place which enabled the
debtors pay all their debts FULL both secured and
unsec ured, and left them large surplus. IL VIII be
found Investigation that most OF the objections urged
against the law have little foundation III fact or
more than eounterDalsnced by its merits.
VIEWS OF LAWYERS.
II admitted all sides that the Bankrupt law has
largely reduced the business Of lawyers, and II might
naturally be inferred that legal profession would