New-York tribune., 1874-01-24
THE BANKRUPT Law.
POPULAR VIEWS.
BusrrEsstMEN OPPOSED ~ ITS RkPEAL

TO ne EdttorN NoI TAe Trf0mke'
SIR: The business community ,is certainty
greatly indebted 20 your able efforts in Oh 'ue
vievs OF leading business meu the repc~i OF 'ne
bankrupt law. The articles published IN youf p'io'
pon this important snbect have attracted theae>o"
on and formed the chief topic OF conversation Of mch
cants in this city We hear but 0pnOn expressoa
IA To the absolute repeal OF the Bankrupt law. and tht
H. that such would entail upon tho business c0u
munity an injury which could not be estimated mef-
chants agree that OF the most sauary effects OF
the Bankrupt law has been in intimidating and thus
preventing thousands Of dishonest debtors from falling
for preferential assignments confession OF judgments
or cousye TO secure claims OF favored cred
itors arc sots OF bankruptcy and can be OF no avail
Whom the dishonest debtor, however has failed and
the vicant creditor has prosecuted his claim In the
bankrupt court the result has always been sahsfac
tory settlement the commercial or hnanciai rum OF
such debtor II true that many OF the cases OF tnis
character are attended with large expenses and dscour
agement to creditors but that the result OF vigant
prosecution good preventing other dishonest debt
ora from falling and deraudng their creditors cannot
be auesoned The provision In the Bankrupt law max
ing the non payment OF commercial paper IA days
past due an act of bankruptcy is certainly the most I'M
p0rtan provision In the whole law In providing SPECIFY
means OF protection creditors for it has been found
impossible in the majority OF cases, before bankruptcy
proceedings begun to make an affidavit To any posi-
tive act OF fraud We may have every evidence TO con-
vince us that the dishonest debtor Is sacrificing his
goods for cash that he Is removing or conceang MS
assets securing favored creditors in fraud OF the Bank
rupt law but to positively Of ones own knowledge
that debtor has committed any OF these acts before eS
amning him and witnesses before Register In Bank
ruptcy or examining his books has been found to be-
as stated IN most impossbility III creditor
obliged to walt until he has positive knowledge thae
any acts have been committed or until no Gao
tanv of creditors to ming petition
in bankruptcy the debtor by this delay would be enabled
to convert assets into cash and leave for parts u
known 1t is often found to the great loss OF creditors,
tna' even .s ase,nr estate for his overdue in.
debtedness may consist or open accounts, apoi
which no petition in bankruptcy can be filed.
Instances upon of or this character have
come to my notice. The necessity for making overdue
accounts acts of bankruptcy In addition 10 connefca, @
paper Ais reckOnized by every merchant who mas been
viomized In consequence Of not having some spepoy
remedy to protect his property 40 tae nanas s U von 1S
must have the means always reauy at psn ni tho th
nonpayment OF commercial paper mas Desn III, ionc m ss
OF this character. And we cannot TOO urgently impress
upon the attention OF Congresslhe necessity ., .hs
overdue accounts acts OF bankruptcy, giving oy uni.
protection possible ~ the creditors against
the action OF dishonest debtors. .,.
debtor would have fear or these acts OF
bankruptcy il the Bankrupt law was so amended as 10
give the right TO majority IN number ana vaiue OF
tate for there would be no necessity for BANKRUPTCY
proceedings the OF the failure OF au honest
debtor for upon calling meeting OF his creditors, and
submitting statement OF his affairs, settlement can
always be amicaby and satisfactorily Effected II MS az
fairs after careful examination, are found correct
This view OF the settlement OF insoyent estates was
ably brought to the attention OF Congress In section
OF Mr. Tremains bill repeal the Bankrupt law, which.
think. TO embody practically the views expressed
above should read IA follows: , =,
Th.t IN all bankruptcy whether adjudication Ia bank
picy had been decreei not shan he wu Tor majority IN value
meeting Of creditors called as provided or al
journed meeting thereof to determine and ssoe % " non Tnn
h, be m,uase smne-d eentrosd disposed o. "oand aP sSd
eonVrom,e extension 'I%poon @ t1e . or % ,pY notion
eeoi anon; the creditors 10 Ouey proPT personal
they the majority nnmber and value Of creditors NAV deem eIpe
such resolution resolutions beng properly $40
repo. the Court they aa forthwith 6e cnhrnei aal ,e ofes
sid estate and S.ns.1P 3 AM % % M s SS So es
There are different opinions expressed as TO tho
representative proportion OF creditors which should
constitute n sufficient number 10 determine now the
estlte of an in solvent should be managed and sesled
but there s only Gns opinion IN the saSss
IN number and value having this right c. W.
Ph,t0detphIa, Pa. Jan 7, 1874
PROTECTION NEEDED FOR HONEST CREDITORS.
To the Editor Of The Tribune.
SIR: In the numerous comments OF the press
on the amendments to the Bankrupt law, IA proposed
by the Judiciary COMMITTEES. there is one material de-
feet which seems to be overlooked, and which, If 1t
becomes law will work great injustice to creditors and
be the means OF encouraging fraud The provision
which refer 10 is portion Of the amendment of Sec
tion 80 OF said act OF March 2, 1867, viz.
The debtor shall be adjudged bankrupt on the pc
titon of one OF his creditors who snail cOnst
tute fourth thereof, at least IN numbers, and the
aggregate OF whose debts provabe under this act
to at least 0nethird of the debts so provaOe
And the amendment TO Section ~ OF said act pro
vides:
II on the return dag of the order to show cause the
Court shall be satisfied that the requirements OF Sec
ton 80 Of said act as to the number and amount
OF petonlng creditors has been complied with or II
within the time provided for in Section 80 OF this
act creditors sufficient III number and amount shall sign
such petition. to make total OF onefourth III mum
OF creditors aud third in the amount OF the
proyabe debts against the bankrupt the Court shall
adjudge, which Judgment shall be- final Otherwise 1t
shall dismiss the proceedings in cases hessatter CON-
menced with costs.
Before debtor can be adjudlcated bankrupt on the
petition OF a creditor said creditor must obtain the sig
natures of said debtors creditors OF at least oneourth
In number and onethrd in value. Query: How Is Pc
titonng creditor to ascertain the debtors creditors
What provision OF law there requiring the debtor to
be brought up for examination In order to ascertain his
creditors before petition is hedi None. Then what
course must the creditor pursuei He must petition the
debtor into bankruptcy and the return day OF the
order to show cause, il said petitionng creditor
fails to get the signatures of one-third in
value and one-fOurth In number OF said debt
or's creditors, the petition must DO dismissed,
20 the injury OF the petoning creditors and said
ton,ng creditor must pay all and expenses aud
The debtor goes free to cheat aud defraud creditors
as Suppose that the debtors largest aud heav-
en,ns redtor would be thrown ont OF court and pay
costs in the bargain unless Onefourth Of said debtors
creditors in number consen.ed TO the adjudication
This would very seldom be- the as the debtor could
in almost every have the small creditors In his
power. 49, a..
Let us then look at another which would often
happen under such law. Tne debtor Is pettOned into
bankruptcy and the creditor supposes, by az least
one-ourth his creditors In value and ons-thrd IN
number and. before the return day OF the order TO
show cause, what prevents said debtor from making
dctitious notes in any amount, and OF any quantity.
dating them pack-say for moDths-and then giving
them TO his friends who would OF course object TO his
Tnua ha mi oh out NJ
court the pettiouing creditors with costs This would
encourage fraud. ,-,- -, .