The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-10-15
Business Failures.

public service than that which is required in
general business? The salary grab was a
pretty bad thing in its way, illustrating the
asarice of the times. 1t was severely de-
nounced by all classes and nearly every public
servant who voted for it or even took it when
others voted it, have been retired to pri-
Vate life by the people as soon as they could
get at them. There are others who sinned
whose turn for public condemnation has not
yet come, but such ones may rest assured
that the people have not forgotten them.
But while we have set up rigid rule for
honesty to apply to public men, are we as
particular about the morals of business?
What do the long lists of failures and sus-
pensions indicate-that men take unusual
risks or that business sentiment has been
so lowered or debased that it is not consd-
cred reprehensible for the man who finds 1t
hard to meet his business obligations, to sus-
pend and offer to compromise honest debts
by the payment of small part of his just
dues?
1t is quite likely we have been imposed up
on by the novel writers. We confess that we
neverrealzed their full sized creations in actu-
al life. Perhaps the bankrupt business
man which the novels have so frequently Civ.
en- us sight of, is myth. That unfortunate
was always accustomed to go to his family in
the palatial mansion, crushed beneath the
burden of disgrace which even an unavoidable
misfortune and failure in business was sup
posed to entail. There was scene in which
the wife and the daughters in tears protested
their willingness to sacrifice everything for
the honor of the father. Aud in pursuance
of this policy the fine up town mansions is Civ
en- up for the scarcely comfortable down town
tenement, the society of the first families is
forever relinquished and lives of toll and pfi-
vation are welcomed rather than that the rep
utation of an honored name should be tar
nishedeven by rumor of possible dishonesty.
This procedure, we say, may be an impo.
sition Of the novel writers and such man
may never have existed. IF such a race of
business men ever did exist, it must have
been at another time. As general rule bust
ness failures today do not have such ro-
mantle conclusion. No houses of brown
stone fronts are surrendered. There is no
scene such as the novels give us. There
seems 10 besa lack of aly thought about
tarnished reputation. 1t comes about that
on certain day, Mr.. A. cannot pay his notes
at the bank. 1t matters not that Mr.. A. has
been telling his creditors that he is solvent
and has furnished evidences of financial
soundness. He can't pay his notes. Some
times it seems as if he doesn't care to DO so.
He suspends. II merchant he locks his
store or some creditor puts keeper in
charge. He goes to his lawyer. They make
up the liabilities and assets OF the party and
then the creditors are informed that they may
take certain per cent or take their chances
of losing all as the result of proceedings in
bankruptcy. The experienced creditor starts
in dismay at the mention of bankruptcy pro-
ceedings. Without any cause to suspect that
he need make his will for decade, the
average creditor has no reason to believe that
he has the possibilities of Methuselah. If
he has been in such case he will doubtless
accept any offer of ready money rather than
c1oose the barren promise of large dividend
as the result of full course under the pro-
visions of the bankruptcy act.
Is not this method of meeting honest obl-
cations becoming more and more prevalent,
and do rot many debtors who avail them
selves of it, show tendency to assume that
they are masters of the situation and are
thereby in place to dictate terms of adjust
ment with somewhat of an air of defiance?
We think it is so; and that, with a certain class
of unscrupulous men, failing is legitimate
business. If such is the case it is wholly
due to business men who allow such irregu-
arlties not only to be practiced without pun
ment but give them their aid by comprom-
ising with this class of men.
1t is not our purpose to notice this subject
from moral standpoint or dwell upon the
Generalization which must follow such a
criminal course. But it is fair to ask business
men to consider what the result is and must
be, x buys stock of goods on time. He
sells, aud instead of carrying on his business
carefully, trusts out his stock. He lives fast
aud spends money not his own. He is led
into this course by the example of others.
In time his notes go to protest and he fails.
his family do not leave the good house; he
does does not sell the fast horse or show the
slightest uneas;nesss. He makes up list Of
bis Liabilities and assets and tells his creditors
that he will pay fifteen or twenty per cent
The creditors meet and finally conclude to
take what they can get. They accept I'is
terms. He makes his payments and on the
result is. worth thousands where he would
be worth hundreds had he been honest. Not
only that, but he most likely continues in
trade and returns TO his business finding in
store a stock of goods which cost him but
twenty per cent. of the market price which
an honest competitor pays for his
stock. Thus the creditors unite to make
dishonesty the best policy for man without
conscience or for one who accepts the mer-
cenary doctrine of "Take care of No. l."
There are men of course, who, in spite of
the utmost efforts, fail to meet their oblga-
tions; but there must be so great a contrast
between them aud those who fail through
recklessness or by design that the creditor
who is accustomed to all classes can easily
distinguish between the two classes.
1t seems that one of the first steps toward
the revival of business is to restore conf
denee. This cannot be fully accomplished so
long as certain constituencies lot of specu-
lators are allowed to fail, dictate terms to
heir creditors and still continue in business.
Nor is there any good ground to expect a
general revival of legitimate business so long
as bankrupt stocks are sold for half the price
at which the goods can be honestly sold. 1t
strikes us that this matter of professional
bankruptcy has reached point where some
thing should be done to check it.
The Anson Aduocdte has mustered up
courage enough to print the following:
The Ohio election comes off to-day Tuesday,.
1t will be marvel if the Democrats succeed,
(tho' we still have hopes they mayl considering
the course pursued by the Democratic bankers
of M Vnrly 81 Lao 1ft h., hs,1 Il