, 1876-02-13
BANKRUPTCY.
Some Interesting Interviews Con-
ccrning the Proposed Nc-
peal of the Insolv-
cncy Law.
What Register Eibbard and Official
Assignees jenkins and Cook
Think About It.

Think About It.
4 few days since resolution to repeal the
Bankrupt law was introduced in the Lower
House Of Congress. aud adopted by vote Of 166
to 81. It now goes to the Senate for CONCUR
renee. Two years ago q eimilar resolution was
introduced in Congress- It parsed the House Of
Representatives, but WIS defeated in the Senate.
Yesterday afternoon . TRIBUNE reporter called
on several OF tho un1ted States Court officials.
whose duty is confined to the adjustment and
settlement OF bankruptcy cases, for tho purposes
Of obtaining their views on tho law and the pos
sible results that may arise from it's repeal. Iha
first called on was
TIE HON. HOMER N. u1BHARD.
Register in Bankruptcy for this district. Alter
the customary salutations had been concluded,
the reporter stated the object Of his Flslt and the
following conversation ensued:
"bIr. Hibbard: I presume you have heard
that the House Of Representatives has repealed
the Bankrupt act by a very large vote, and that
it now awaits the action OF tho Senate. What
do you think OF it?"
''The Bankrupt law needs amendment. Sec.
II OF the act Of June %, 1874. IN relation to
compositions which in itself reads vel and
seems to be very humane provision, has been
abused more than any simple provision OF tho
law, aud, uness it can be materially modified so
as to prevent fraud, might as well be nbhn-
doned. The provision in tho same act requiring
one-fourth Of the creditors and one-third Of tho
amount OF the Indebtedness to join in an lnvol-
untary petition compulsory bankruptcy is a
wise provision, when the cause OF the bank
rup!cy is simply suspension OF commercial
paper. But VIXEN
TIE CAusE Is FRAUD,
or eecreting goods, or carrying property out OF
the jurisdiction OF the Court, only Que creditor,
having claim Of, ut least say $3.50, should DO
required to attach his name to the petition"
"How many cases have passed through your
hands during the past year."
''In looking over tho records OF my office
few days ago, found thero vere about $50
casss in bankruptcy in 1875 arising in this
county,"
.How many of these were absolute failures :"
Not moro than dozen OF tbs whole lot
could, in auy aeuee, be considered 1allureH.'
.sWhat wero the remalnder?'
"The remainder we're the cases Of impecuni-
oue people who sought discharges from their
debts, many Of which we're long since con-
trac.ed. Tho parties bad no aasess beyond
limited wardrobe"
"Are there any other defects?"
Eyes another defect 10 the practical work.
ings of the law ia tho facility with which bank
rupts get discharges"
..Uau you suggest any remedy for this?"
II cannot suggest any in detail In England,
under the practice OF q Bankrupt law not very
diaeimilar from our Own, it seems to be much
moro
DIFFICULT TO GET D1scHARozs,"
"Why is this SOP"
"In England the COINCIDENCE OF tho bankrupt
is mo.o thoroughly searched than with u.s."
Or, in other words, perjury is much more
dsroputable there than here?"
'.Well, yes, that's about it"
"Can't our Courts thoroughly examine the
1ankruEt as to his eoaa'tion|pu' u him through
"lea. Judge Blodeett has held that, where
merchant has gone into buaineas with q GER
tain amount Of capital and has after
wards purchased q certain amount OF goods,
be must account for such capital and purchases;
and, if he cannot show substantially where his
capital and purchases have gone to, the Court.
in case wide discrepancy we're found in his
showing, should judicially find that he had So
creted q portion of Lis goods, and order the
bankrupt to
SURRENDER THE SAME
to his assignee. In Two cases of this character
Judge Dlodsett, notwithstanding the protest OF
the bankrupt that he had secreted nothing. held
him to be in contempt until he accounted for
such shortage"
"Is such contempt punishable p
"Yes, just the same Alb o!her cootempts. Tho
defendant WAS obliged to purge himself OF it or
go to jail"
IF tho Bankrupt law we're repealed, what
.Under the State Law, tbs first Judgment aud
levy are first lien. Hence, IS coon as NOR
chant fails to meet hls paper promptly, the suc-
cessful collection LAWYER will bring suit at once,
on the principle of first come, first served
Necessarily this oxcites diligence and scramble
for the effects Of the merchant. In Q practice
Of eighteen years in this State. largely devoted
to collecting business, have found that the
more severe the attorney ls tho moro likely he ia
to collect his clients claims, and he is more in
tereated to get 100 cents On the dollar for his
client. though in the aggregate fur less is paid
to tho creditors than to divide 10 per cent among
ell the creditors"
(which costs the more, q ss!e BY the shorir
or bv an Assignee ?"
goods ara sacrificed IS much by sherlf's sale as
BY an Aesgnee's."
s.Whas is the great good Of tho Bankrupt
law?"
"The benefit arising from Bankrupt lam is
not confined to the caHes IN bankruptcy in court,
but appears in the
FoRBEAnA.ScE OF CREDITORS
to debtors which it causes. l havo been told
within month BY several merchants in this
city, that had it not been for the existence Of
they would hare failed, since they would
have been sued on their first maturing
Indebtedness, which they did not pay; and judg-
meut, execution. aud Sheriff g sa!e would have
ended their business, by the payment Of 10 per
cant of the claims against thom. While the
knowledge Of the fact that the other creditors
would commence bankruptcy proceedings to
prevent few from getting all, q general for
Iearance has resulted, which has enabled them
to ousride the STORM, and they are solvent to-
day."
'sIn whose interest is the proposed repeal 2"
''TuE LARGE MERCHANTS
East and West, who keep their travellers in the
field, and who first learn OF a debtors
weakness, are enabled, when not hindered
BY Bankrupt Law, to get Judgment notes,
chattel mortgages, or judgments, earlier than,
their smaller competitors, and they prefer, I
think, to take their chances OF being first to an
equal distribution Of assets"
"Who else favor the repeal -
s.Lawyers residing at q distance from where
the United States Courts are held get very little
bankruptcy practice, and it interferes with their
collecting debts in their home courtB. They are
interested in having tho law repealed, and, be-
liove, generally favor the repeal"
'sIIow is it such large majority OF the House
OF Representatives favors the repeal z"
"The great bulk of the members are lawyers
from country districts, and moro than one-half
o. these have partners at home, who are inter-
ested in the repeal for the reasons hsy3
given."
uDn vnn he]ieve in tho continuance of the