The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1876-03-08
THE BANKRUPT Law.
Discussion of the Matter Pro and Con
by Our Merchants

| n. Rich, Secretary of the Board of Trade, who
briefly stated the object of the meeting He
| hoped that there would be general expression
of views on both sides of the question. Mr..
Thomas e. Twitchell was called to preside, and
! Mr.. Henry Littlefied was chosen Secretary.
The chairman stated that he was not present
at the Board of Trade meeting but hoped
there would be general exchange of views at
| this meeting.
George w. Woodman, Esq, President of the
Board of Trade, was the first speaker He was
| strongly opposed to a repeal of the present
bankrupt law. He thought that the merchants
| could not afford to 60 back from solvent law
to the old grab law. In most cases of bank
rupt estates the creditors receive fine percent
ages. The bankrupt law has nothing whatever
to do with the shrinkage of values all over the
country, but these shrinkages cause men to 60
into bankruptcy. The speaker here cited a
case where debtor offered to pay 10 per cent,
but was put into bankruptcy and the creditors
! obtained 30 per cent The law as it now stands
enlarges the percentage. The present law is
not perfect, but it is better than none at all.
lie defended assignees and said it was not true
that assets dwinded away in their hands.
L
The petition and remonstrance was then read
1t is as follows:
To the Honorable the Senate and.. House of Repre-
sentatiges Of the United States, in Congress
| assembled:
| Your memoralists, merchants and business
| men in the city of Portland, approving the
| principle of the law of Congress, known as the
bankrupt law, that the estate of an insolvent
should, by law uniform throughout the United
| hll dnd In fIA
of the insolvent; and believing that uniform
| rule should exist throughout the whole country
| Tor the prevention of frauds upon, and prefer
| ences among, creditors in cases of insolvency;
| and that like uniform rule should prevail, by
| which an honest nsOlvent may effect an euuit-
| able composition and settlement with his cred
itors, or by which such an insolvent may OBJ
| tain discharge from his debts; believing at
the same time that the law ought to be amend
| ed by reducing the number of creditors requi-
| site to put dishonest debtor into bankruptcy,
| by enlarging the time within which preferen-
t1al judgments and executions, and sales, trans
fers and mortgages of property may be at.
tached and within which criminal prosecutions
for obtaining goods or credit on false represen-
tations, or fraudulently disposipg of goods
bought on credit, may be brought, and by SIM
| plifyng the practice and diminishing the ex-
| penses of proceedings in bankruptcy:
Respectfully demonstrate against the pro-
posed repeal of the bankrupt law, and pray
amendment of the same.
| And such of your memorialists as may have
heretofore signed petition. for the repeal of
| the bankrupt law, respectfully request that
| such petition may be understood as expressing
their opposition to the law as it now stands, but
| not as opposing the just and Statutory prnci-
pie of the law nor as opposed to the law with
such notifications as are above suggested.
Mr.. c. r. Mi liken, the prime mover in the
| matter of repeating the law, then questioned
| Mr. Woodman in regard to statement which
the latter had made in regard to its being nee
essary for bankrupts to pay 80 per cent. before
| they could be discharged if they went into
voluntary bankruptcy. Mr.. Milliken thought
| this was not the case while Mr. Woodman con-
| tended that it was.
Mr.. Charles Mclaughlin was next called up
on. He is understood to be very earnest in the
matter of letting the law stand as it is unless
it can be improved. He remarked that he
never spoke in public and would not have ap
peared at all, only he considered the question
under discussion the most important of any
which has been brought before the Portland
merchants for years. He was certain they did
not want the old grab law, which meant first
come first served. In all his business relations
what had paid a good percentage. He thought
that merchants could not afford to do away
| with the law as business is at present 1t is
| foolish to talk of honest debtors being abused
| by creditors; such a case cannot be cited (Ap-
plause.) He had known cases where dishonest
debtors had offered to pay Is per cent, but up
on being threatened with bankruptcy have paid
80, and in one case he received ST..
George f. Talbot ESQ.,, spoke of the meet
ing of the Board of Trade. He was not in fa-
vor of the repeal, but thought the law should
be amended The credit system would contin-
ne to be in practice more and more. He was
glad to see the present meetingsand thought
| their deliberations might result.in good.
Mr.. Chas. r. Mlliken stepped forward and
acknowledged himself the target of the meet
| ing He stated that his experience with the
law had been very unsatisfactory. Nine out of
every ten men in this city are in favor of a re-
pealsuness we can have better law, and he
| did not know of single instance where a firm
had been asked to sign the petition and re-
| fused.
Mr.. Milliken read short recommendation of
this petition, signed by III. B. Claflin & Co.
and other leading firms of New York. He
then read the following petition with the sig
natures attached:
| To the Honorable Senate of the United States:
The undersigned beg to ask your support for
the bill just passed in the House of Represent
atives. repeating the bankrupt law, believing
| that it will work great benefit and improve.
ment to all our commercial interests and relieve
creditors and debtors alike from complex and
burdensome law, which was passed mainly
| to relieve class Of debtors who had been rem
dered bankrupt on the breaking out of the
late war; these have received all the benefits
intended to be conferred by its passage,
aside from which it has proved to be a useless
and expensive addition to our commercial law.
We would further state, as merchants doing
business over widely extended section Of
country, that we would greatly prefer to look
to the state courts for protection to our inter-
| ests' rather than to the complex, dilatory and
| expensive bankrupt law, which, in practice,
| has benefited only the officials by whom it is
| administered, and those bankrupts who do not
hesitate to swear falsely, while it has frequent
| ~ been used to Cypress the honest debtor
Former bankrupt laws have been short-lived,
and we believe The present one should be re-
pealed at the earliest practicable moment.
Deering, Milliken g. Co., W. F. Phillips & Co,
Morgan, Butler & Co., Smith, 1ibbets & Co,
A. Little q Cos. d. White & Sons,
:. q u II. M1illken, b. b. Farnsworth & Co.,
W. W. Harris, r. L. Morse
& TorJ r., n