Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1873-11-07

Il correspondent of The Philadelphia
Telegram talks sonsibly ON this subject.
He writes
SIR: can fully indorse The position
you assume respecting bankruptcy in re-
cent editorials on the subject. / have been
creditor and have only painful expert
ehce OF the great waste resulting from re-
sort to bankruptcy as 4 means of winding
up estates. | used to have an idea that the
plan was first rate one that instead of
leaving the assets in the hands of Interested
parties to be realized Just when they CON
sidered the prospect favorable to them, it
placed them III the hands of those whose
business was only to consider the creditors,
and to wind up the estate as promptly as
possible. 1t seemed to me the simplest and
most expeditions method of proceeding.
Accordingly, when some year or so ago
Taylor & Gillespie suspended and called
their creditors together, I being small
creditor, threw my influence in favor of
liquidation in bankruptcy. knew that
some time before they had settled at seven
ty cents on the dollar, and had a fair state
ment before me of the then state of affairs.
The debts amounted to about three hun
dred thousand dollars, and from the sche-
dnle OF assets il certainly appeared that the
dollar. Still did not feel satisfied to have
assignment, and resolved on bankruptcy.
Well into bankruptcy the estate went, ard
with what result, thitS you2 | have so
Tar received fifteen CctitS on the dollar, and
am told that | must consider myself pecu-
llarly fortunate il by any chance an extra
five cents should be paid. So there was an
actual sacrifice of from thirty-five to forty
five per cent. of my claim, for events have
shown that had the business been wound
up by mutual agreement the FIRST showing
would easily have been realized. Again,
| was interested in the case of Shellbarger
N Co., and in that instance my friends tell
me was particularly lucky to come off so
well. There the schedule Indicated q
probable dividend of fifty per cent, at
least. The estate was thrown into bank
ruptcy. and although the principal item in
the assets met with an unusually good
market, the expenses of one kind and
another were so heavy that the end only
33f per cent, was realized. This my own
experience and that of my friends, demon
strates to be n very high dividend to re-
celve from a bankruptcy estate, but when |
think how we avoided bankruptcy, 4 feel
anything but aimable toward myself and
Those who with me insisted on throwing
the estate into court. These are Just tSO
leaves out of my diary, which contains
several others telling SIMILAR tale of fool
ish waste. spoke of expenses just now.
Once an estate is thrown into bankruptcy
there is no telling where they will end.
There is the assignee to be paid. His com
mission by singularly fine theory is fixed,
but there is tail to the provision, and in
that lies both n tail and n sting. This
tail consists of the words "and such other
reasonable compensation as the court, ETC.. "
When il is remembered that contests are
sure to arise, that the assignee must have
the benefit of legal advice and assistance,
and that it is impossible to keep check on
n thousand and one little matters, it is very
easy To see how "such other reasonable
compensation" may seem very uurcasona-
bic and eat 4 very big hole into the assets.
And the assignee is only one of the leechcs
that fatten on every bankrupt estate. In
fact my experience is such to make me
bitterly regret not having paid more atten-
ton to some friendly advice given me once
by lawyer He said IF there Is any
possibility of doing anything else don't 60
into Bankruptcy Court; it eats up an estate
like the mischief" In future l mean to
be guided BY his disinterested counsel.
ONE VINO KNOWS.
Philadelphia, October -