New Orleans Republican., 1873-02-09
.perrnapeut Bankrupt Law.


last twenty wears, frequently amended the
English bankruptcy act, as its deficiencies
became apparent, so that now the mercan-
tile world deals with confidence win the
British merchant manufacturer, oahker'
broker or trader assured that,'so far as the
law and its administration Is c"neefneu'
the creditor class is protected IN lts riSnts'
The constitution of the united S'a' naN
ing wisely provided for the establishments
of a uniform system of bankruptcy, IN the
year 1900 Congress passed bankrupt law
which was after brief trial repealed.
In the wear lS4l another bankruptcy act
was passed, but it was also OF snort oura-
ton.
In tie spring Of 1867. the present bank
ruptcy act was enacted, and IL mas peen
amended by every succeeding Congress. Az
first, the general feeling prevalled thaG tils
law was to be OF short duration, out as the
system was eugrafted upon tie JurIspru-
dence OF the country, the Judges OF the
United States courts. to whom has Deen
delegated the administration OF the law
slowly, but firmly, put its provisions into
force. If the law has not proved satls1ac-
tory to the people, and has not accomplished
what Congress intended, the fault does not
now rest with the Judiciary, but must be
traced to the source whence it emanated
1t can not be denied that the bankrupt act
has failed to protect the creditor class,
while in many instances, il has proved
harsh and unjust to the debtor.
/ therefore becomes necessary that 1t
should be amended or repealed. Which
course Congress should adopt is now mat
ter of serious moment
The law having permeated the Jurlspru-
dence of, and its administration having eX-
tended throughout the country, its repe,
would now result in revolution, the con
sequence OF which would he disastrous to
commercial interests.
Therefore, whatever portion of this law
has proved defective, should be changed;
and the principal defect is the ponderous
machinery, the expense of which is enor-
nous, and is a charge Oh every bankrupts
estate, and which affords the oppol tunity
for, if it does not actually encourage, pecu-
latiOns, frauds. and wasting OF the bank
rupt's assets.
The great majority Of adjudicaticns,
where there are assets, are the result OF IN
voluntary proceedings. In these proceed
lngs the bankrupts assets are usually taken
possession of by a United States deputy
marshal, either before or subsequent to an
adjudication, If before an adjudication, it
must be done under q provisional warrant
of seizure; if subsequent to an adjudication,
the warrant of seizure gives the marshal
the custody Of the assets during the inter
regnum between the adiUdiC alton and the
acceptance by the assignee Of lis election
or appointment.
1t i not the ol iecc of the writer 70 be
individious or to cast reflections on any OF
ticer or class of officers, but il is necessary
TO designate the names OF officers speclhed
in the bankrupt act in order to illustrate
how unwisely Congress has bErdened an
otherwise good and equitable law with
horde of eXecuuOners whose demands must
be satisfied before the creditor receives
dividend from his debtors assets.
1t is customary tor the deputy marshal to
whom has been assigned the custody OF the
assets, if there is personal property of value
which requires care, or which Is liable to
removal, theft, or depletion, other than
ordinary wear and tear, to appoint watch
man or keeper. Thus a shall stock OF goods
may pass through or into the hands OF three
or more officials before il is taken posses
sion of by the creditors actual agent. the
assignee in bankruptcy.
Next in order come regi sters, assiguees,
clerks OF court and United States judges
sitting in bankruptcy or holding appellate
courts.
Few registers in bankruptcy are fully Oc
cupied i'll discharging their official duties,
and as they are Iemunerated by funds pay
able out of the bankrupts assets. Or by
creditors seeking 10 enforce their rights.
their very Office in this respects unpopular.
lnelT ices. dISO, are Oul Ul pIODOIllOb w
the services rendered by them.
Fewer registers in bankruptcy possessed
OF greater authority and responsibility, and
paid by % fixed salary, would undoubtedly
better accomplish the objects of the law.
and give greater satisfaction to the public
II, instead of the United States mar
shals acting as messengers IN bankruptcy.
the law provided for registers clerk,
whose duty il should be to perform all the
q aA nv q oil on hiS
deputy in bankruptcy matters, this would
be preferable. The clerk should be the
official custodian Of the oankrupt's assets,
and also the official assignee III all cases
where the creditors do noe choose another
person to perform the duties Of an assignee.
Registers IN bankruptcy might be clothed
with all the powers Of original jurisdiction
now exercised by United States district
judges in bankruptcy matters-an appeal
being allowed in all matters to United
States district judge. This would greatly
relieve the judges OF United States district
courts from much of the labor at present
imposed on them by the bankrupt law. 1t
would. also, create q iudici ary whose sole
duty would be the enforcement of only one.
but that one the most important law on the
statut. books. and thereby insure u the
commercial int rests OF the country speedy
and Efficient redress against fraud and dis
honesty.
1t is the expectation OF the business com
munity that Congress will, at its next ses-
zion, amend the bankrupt act as experience
has rendered advisable; and to do so, an
amendatory act should be introduced early
in the session, and the judiciary commit
tees of both houses would do well to
consult some of the judges and leading
practitioners in bankruptcy, before any fu-
ture amendments are finally agreed on
Western JhriSt.