, 1873-11-29
BENAToR MORTON AND THE BANKRUPT
ACT.


BENAToR MORTON AND THE BANKRUPT |
ACT.
Tho achotno to ropoal tho Bankrupt Inv md
remand tho bnsnoBB Of tlo country to tho t1aya
Of eharp practice at,tl dishonest doalinga goomB
to find favor In oertnin high quarters. Tho
Latest giving out III Tint Senator Morton intcnlH
to Introduce bill to ropoal all that part Of tho
Bankrupt Inv authorizing involuntary bank
ruptoy, ind to include in tho roponl alt such
bankruptcies aB may have taken plaoo anco tho
first Of September last. This Is intoudod, per-
i,are, to rescue Jay Cooke & Go. from tho pro-
coodngs In bankruptcy already begun, and to
compel tho creditors to accopt such tcr1nH OF
settlement as that firm may propono. Any
legislation Of this kind must always
ho vicious. Why should Congress- iptorvono to
prevent Jay Coolte'a bankruptcy? What claim
has ho upon tho nation that ita laws must ho
changed to suit hla convenience, snd tho process
OF tho co,lrtB arrested for flat purposo9 Apart
from tho great ecant'al to which such n proccol-
Ing will givo riso, this kind Of logl e1ation in
fundamentally wrong.
Why should tho law Of involuntary bankruptcy
10 repealed? Involuntary bankruptcy may bo
declared upon tito petition Of creditors. whom
tho dsbta oxcool $500, md In caso of dobtorwho
~ absconds from tho place Of hiH residence
with intent to defraud Lis creditors, or, bcing
abaont, renaing away with such intent; (2) who
cohcoals hnsolf to avoid acrvco Of loyal process;
(8) who concea1a or removes his property to
avoid its bong taken on loyal process; CA) who
1nakoB any assignment. gift. etc.. OF his property
with inscnt to delay, dofrnud or hinder his crcdt-
ors; (5) who hns been arrested aud held for
Beven daysundor mosno procoas for dobtoxcecd-
ing s1oo; (8) who has boon actually imprisoned
for moro than aovon days in civil action fountl-
cd on contract; ~ who, being bankrupt Or in
solrcnt, makes my payment, gift, transfer, or
sa1o Of bis money or property, or gives
any warrant to confess Judgment. or autfera
his property to bo taken on legal pro-
ccss with intent to givo preference to ono or
moro creditors, Or otherwise, with intent
to defeat tho Bankrupt act (8) who. being
banker, broker. merchant trader, manufacturer,
or miner, has fraudulontly stopped payment, or
lima suspended payment and not resumed pay
mont Of his commercial paper within fourteen
dnys.
It will bo seen that in all theao INSTANCES, ex-
copt one, tho law requires eome evidence Of &C.
tual fraud, or fraudulent intent to Justify invol
untary bankruptcy. Tho exception is III tho
case OF bankers, brokore, merchants, traders,
uanufacturers, aud miners, who actually stop
the Payment Of their debts, or leave thoir COM
naercial paper unpaid for fourteen daya. In all
other casos. tho Bankrupt law gives tho creditors
tho powor to arrest md got aside any fraudulent
disposition Of the bapkrupt's estate or any
preferences Of creditors. It requires m honest
aud equitable division among creditors, no moro
and no less. An honest creditor or debtor can
ask for nothing else. What will DO tho result Of
repeating this part Of tho law 2 It will bo to
legalizc al tho frauds which this low WAS in
tondod to cut OF. It will enable any debtor to
confess Judgments, make assignments, sell and
convoy I'll Ills estate, to noouro tho
olaim Of ono or moro preferred orodit-
ors, and leave al1 othora without any
ahars in Ills estate. It will enable any nun to
leave tie plaoo Of lis indebtedness. remove his
property secretly, or avoid legal process, aud
bid defiance to all his creditors. 1t will enable
bankers brokers, md others to close their doors,
suspend businoss, and mako away with their aa-
Bots under ewindling assignments. It will on
courage md foster frnud md dishonesty, and
nuat Of necessity weaken. II not destroy, the
credit of thousands Of persons. a credit systom
which enables tho debtor to fraudulontly dispose
of hiH property reBtB on sandy foundations.
But 1t il proposed to repeal this involuntary
proceeding, and restore the old system, uudor
for tho benefit OF fow real fictitious creditors,
and then, at his leisure, proceed to buy up his
owu debts at n fow cents Oh tic dollar, and
blossom out again az most Experienced md sue
cosstul ,uan Of businoHs. Tho country has nuu-
dreds Of such persons i'll tho banking limo, who,
II thiH part Of tho law DO ropoalot, will at once
mako these assignments aud become rich upon
other pcop.o'A money. It is this class Of men
who are clamoring for tho repeal Of tho Inv.
No honest debtor objects to tho law as it
8Ianu6, 1ElL lAH E0luHoB u1EN q ulEclnESG uuloa9
ho pnys 80 conts OIL the dollar OF Ills debts. and
| honestly divides it among his creditors. That
| is not what these mon want to do. They wnnt
| to return to the old syatom Of paying just what
they ploaao and to whom they p1oaso and to
| mako failure but another namo for getting
rich by tho spoliation Of their creditors.
| II tho "involuntary" clauses Of the Bankrupt
iaw arcropoaled, tho Involuntary clauae should
! be made to include all assignments Of property
| rtho benefit OF creditors, both thoso which arc
made In court and those made out OF court. Tho
effect OF making theso changes would bo to leave
tho collection Of debts to tho common law pro-
cona. the old-faalioned trace OF Diligence, but
would mako every pretended surrender Of prop
erty for tho boneat Of creditors IN aotaal aud
bona Jlda surrender.
|
| RICHARD YATES.
| Thu fnAt]s of the Hou Richard YntnA The