New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-02-24
THE BANKRUPT ACT.
PROMINENT MERCHANT FAV0RS IT'S
REPEAL.

rtTp BANKRUPT COURTS USED ~ Dhfhht'
CarprrORs - DEPRESSING EFFECT OF THE
opt,RA TIoNs or THE LAW ON THE TRADE
INp CREDIT OF rHE COUNTRY.
"A, Ed(tor Of TIE Tribune.
c,p. There arc many of the friends OF THE
.,nuxy who would gladly IT'S conclusions revised IN
a. matter OF she repeal Of the Bankrupt act ior now
- bencacent the theory of that law may be- IN Its
tactical operation it Is so unfortunate that IL very
rslv opresses the industries Of the country
60 of the details of it's workings the winter begs leave
- urcest: In the first place, il claims TO proceed upon
an. theory Of Equity Jursprudence-that all pleas
ove the honor and conscience OF the party litigating
and in consequence, must be verified by the oath OF the
sty himself IT, Therefore the attorney accredited
nt Of New York creditor desires TO the inter
,enton OF the Bankrupt law against o Texas debtor
hose fraud he inst discovered, he must first pre-
sre the senseless formula prescribed and transmit II TO
ns Northern principal, who must himself verify under
..th it's statements, however deficient his personal
tpnyedge may be- the document is then transmitted,
oriinary course back 10 Texas. and it, meanwhile the
contemplated fraud has not been thoroughly accom-
,,shed one may not then hope to interfere, for
N Is fret necessary in order TO file petition in bank
,uptcy that should be submitted TO the District Judge
by whom the order for the Issue OF process is made
10 accomplish second step requires always tedious
aeay and very considerable expense for there is no
certainty that the Judge will be found either at
.ae place OF his residence at the APP
ronted place for the holding OF his courts In
e,t case the writer desired to file petition in bank
ruptcy against a debtor who resided at Wilmington N
q The United states District Judge resided AT Eliza
neth CITY, some 500 miles distant In the extreme eastern
portion .of the State and in a locality which IL APP
rroaehed only by the Dismal Swamp Canal of Virginia
In POINT time alone this journey required four days
nom wilmington, and the excessive inconvenience 1t
ecasooed was nowise relieved by the fact that when
his residence reached, Judge Brooks was not at
Nome. For nearly year in the district of Alabama
during the absence OF Judge Busteed In Europe 1t was
impossible 10 obtain any order or 10 commence any
proceeding in bankruptcy. To a greater or less
sxtent this evil prevails in all localities. De
lring 10 Gle BANKRUPTCY proceedings against
debtor at Auburn NewYork one must first seek Judge
Hall at Buffalo and falling 10 find him there as is prob
able, you must 20 Troy, and possibly TO New-York
also before the necessary orders can be obtained.
So radical defect in the working Of tho law can well be
appreciated. but doubt whether it can be overcome
% long as administration is given 10 United States
judges whose jurisdiction is exercised great an
extent Of territory But with this difficulty overcome
the debtor may deny the act Of bankruptcy alleged de-
mand jury, and the matter can then only be deter
mined al the regular sitting OF the United States courts
which are held only at long intervals, and involve always
great expense and infinite detail. With the adjudication
Of bankruptcy obtained, however, and the pOnderOus
machinery Of the law at beast In motion, but little is
gained for although nominay the choice of assgnees is
to be made by the creditors, yet inasmueh as tbeg
lection must always be confirmed by the District
Judge, u practically amounts TO an appointment
Wy INC udge, and III consequence we have
Hh"i are known official assignees, whose DUTY
=. il to absorb all assets OF bankrupts debt0rs,
and 20 prevent any distribution among creditors Ins
Jeaiure Of the law has rendered possible the nconrO
Yerthle fact that Northern creditor has ever received
dividend OF single dollar from the Dlsl1et o. lops
ana although property to the value OF millions OF DOL
signee This abuse also prevails IN all localities ana
necessarily prevail while so large numer OF oll-
eas are dependent upon the workings OF TINS law for
dalv bread Moreover In the where the law
Ia fairly administered by honest officials It's terrible de-
Is very large the assets are all exhausted before half the
formula accomplished With assets sufficient at II
az; law To realize 10 per cent of his claim. Can law
which renders possible such result receive the IN
dorsement Of any faiTminded man s Wne5nef
OF mercantile honor, already sufficiently debased,
were s Prc 4The Hpo6 Ean to
absolute exemption from 9Sy pT9Vi1GH nc can S SoIs
In practice this is simple invitation to all men to con
tract excessive Liabilities, and under threat OF te as
effect compromise OF these liabilities at nominal g-
ures the debtor always provides or can provide ms
cre5nrs There is hardly an exception TO the expert
eDce Of al merchants that since the passage OF the
BANKRUPT law, failures among their customers nave IN
reaSed N least tenfod; and because OF this fact and
he dstrust it excites that measure OF credit
which the various industries OF the country require Is
now crudgingy given and in many cases entirely Will
held To the South especially tie bankrupt law mas
been an incubus Only less iaen ~ 'n Snerc any
tile honor; exciting distrqst by the opportunities
for frau
and TO refuse such aid as was required 10 Ier69
the disasters occaoned by the war 1T is possible t9aI
the and then again be repealed without serious
detrment but continuing statute tna con1tas'yF u
preaatcs the obligations OF all contracts that oners
facilities for fraud which renders all credt halardouS
can never be seriously upheld contributing to the well
fare Of our people and the honor OF our CIVILIZATION
TIKI TRIBUNE suggests, however. that no demon ua-
Sunity is benefited when of integrity and enter.
prise are set on their feet again." beg leave 10 reply
that parity would prove 1t desirable 10 Tepeai
ali criminal laws because the community would be
benefited by the pardonng OF CRIME fSIee
under very eXtenuating circumstances: hhterPIisSS
and integrity are not the qualities r ElCh
invite disaster and though there De aSe
by misfortune, II is nevertheless iar %
without limit the opportunity to lnfct ACKNOWLEDGEMENTS
that the bankrupt debtor is by no means the only sur
ferer for involves in his ruin many VINO ere SpIU
fruitful parent of many bankruptcies ana IneIe ar ar
to-day broken down ana a1ned ere ntpusted
nevertheless have escaped thIongn the lnter
yenuon Of this law. Can II be conended that SAVINGS
bank corporation should be permitted again 10 renew
the mprOyidence and crime when nave oeIOie
vae business life should again be permitted their exer-
else, to renew the disasters which they nave De-
fore accomplished IL ia indeed true that IN
Europe the Bankrupt law has been suffered nSd
10 continue without remonstrance, DuI IN LnS dns
Continental Europe public opinion SO severely @
all failures that it never permits 10 rise agaln G n
whose mereaptne nnSt law nor any Kindred me
ehanD IA adequate 10 accomplish this result IN tnls
& for the exercise Of ali business talent,
though man may have 1alled many te , aon NO
exhaust the catalogue OF the names Of all his friends De-
fore career is closed WEI
THE LAW ONLY NEEDS AMENDING
To the EdttOr OJ.The Tribune.
SIR: Your article in to-day's issue against
the repa OF the Bankrupt law is sound in its state
ents and vigorous reasoning that 1t is greatly 10
be wished that you should repubsh it, or continue the