, 1874-01-07
TIE SENATE BANKRUPTCY BILL.

cation be examined before it is granted.
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THE SENATE BANKRUPTCY BILL.
The bill reported by the Judiciary Committee
Of the Senate ns substitute for the House bill
repeating tho National Bankruptcy net abso-
lutely, is an indication that thought hos
been bestowed upon the subject in tho Senate.
and it furnishes ground for the hope that tho
headlopg action Of the House may be reversed.
There. is unquestionably Q demand that the
Bankruptcy act be amended, certainly BY re-
duction OF the fees now paid 10 officials, and
ditions OF involuntary bankruptcy to meet the
commercial e1igencies that follow panic. The
bill introduced into the Senate provides for
both these things, and is SO far re-
made throughout the country by various
Boards Of Trade, Chambers Of Commerce,
and other associations of merchants. It saves
the bankruptcy system, and thereby protects
the commercial classes Of tho country from the
evils incident to the system of assignment aud
preference under the State laws.
With the information now before us, the SEN
ate bill seems to contain all the modification Of
account OF the late shaking up Of business and
shrinkage Of values. At the same time it re-
Trims the vital principle Of the law which has
done so much to sustain tho confidence OF cred
,fr hr urI
frauds. The principal changeis the requirement
that involuntary bankruptcy proceedings shall
be commenced only upon the petition OF one
foul til the creditors in number and one. third in
moves the only objection Of any
merit which has been urged against
tho maintenance OF the present system 70 ;,
under this rule, no captious or unfair creditor
eau take advantage Of debtor, whose default
OF payment is the result Of temporary e1nbar-
rassment which he could not control, and whom
time will enable to pay all debts in full. TIE
Court is authorized to take twenty days in cases
alresdy pending, and five days in all cases COM
menced after the passage OF the act, to ascer-
tain whether due notice has been given to all
the creditors, and whether the required number
OF persons and amount Of claims hare Joined IN
the petition. Another essential departure from
the old law is the provision that requires the
discharge Of an involuntary bankrupt without
regard to the proportion Of his indebtedness
which his estate may pay. In Wow of
The protection afforded against collusion
for the purpose Of involuntary bank
ruptcy by requiring the acquiescence Of u
majority OF the creditors, tllis provision ap-
pears to be just. II man is to be forced into
bankruptcy during the strain that follows q
panic, 1t is but fair that he should be discharged
free man after al his possessions have been
converted and turned over to his creditors with
out regard to the sum realized thereon The
Jurisdiction Ut the Bankrupt Court is wisely en-
1arged by the Senate bill 30 as to enable it t.
take possession Of tho business Of q debtor and
carry it on for term not exceeding nine
months when, in it's judgment, the interests Of
the debtor and creditors may be served BY this
course. There are humorous cases in which the
extension Of q business may enable it to realize
much larger sum than II it wore sold out At q
forced sale. OF the same nature is the
provision which authorizes the sale Of
real estate on the favorable terms OF one
fourth cash. and the balance in six, twelve. aud
eighteen months. at 7per cent interest," properly
secured. As these sales, like all other trans
actions, are under the supervision OF the Court,
they will undoubtedly bring more money than if
all cash wero demanded, and the security will be
ample. Aside from these changes, the bill pro-
yides for general reduction of fees to one-haH
Of what they are now, until the Justices Of the
Supreme Court ahal make now rules for the
Bankrupt Courts, to avoid unnecessary delay
and expenses, as they have tho power to do
under tue present law.
This bill haa evidently been prepared by some
one mora familiar with the business needs Of tie
country than any OF the 240 members Of the
House who voted for m absolute repeal aud
there is now more hope than there was before
the holiday recess that the Bankruptcy act will
be only modified and not repeaied.
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HOW PROTECTION PROTECTS.
4 year or more ago, when tho tariff Tas be-
fore Congress. the operatives in the silk mills
OF Paterson, N. J., permitted themselves to be
used as eigners Of q 1emonstrance in the name Of
Labor against any interference With tho duties
on silk. committee Of the operatives actually
went to Washington to represent to Congress
tlat the thrift duties secured fair wages. Since
that time, poverty and destitution have brought
them TO closer acquaintance with the effects Of
protective duties and last week there was q