Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1879-12-17
Another National Bankrupt Law.

The business men of Boston, through
their board of trade, are moving to procure
the enactment by congress of a new bank
rupt law. This action is taken in conjunc-
ton with similar bodies in all the other
leading cities of the country. A committee
of the Boston board has just submitted a
report which is of wide interest, indicating
as it does what provisions the business mel
of Boston think such law should contain
The committee reports that the great de-
feet of the bankrupt act, lately repealed, was
in its administration by registers who re-
ceived fees for their services. These reg
listers were to all intents and purposes
judges, although the law did not contem-
plate that they should exercise judicial func.
tions And since in the committees opinion
judges should not receive fees for their SER
vices, it is recommended that the admins
tration of the bankrupt law be in the hands
of judges with fixed salaries, one to be ap-
pointed for each district to deal with bank
rupt causes, having the same authority as
United States district Judge. They further
recommend that assignees be elected by
creditors subject to the control of COM
mittee of creditors, substantially as provided
in the late law regarding trustees. Said
assignees are to receive one per cent on all
moneys received as compensation, and there
is to be no distinction between voluntary
and involuntary bankruptcy. Adjudication
of bankruptcy is to be had upon petition of
one or more creditors by showing one or
more acts of bankruptcy. The committee
is in favor of continuing the provisions of
the old law in regard to fraud, excepting
that the time within which fraudulent
preferences and fraudulent conveyances are
avoided should be extended four months.
In the choice of assignees it is suggested
that all estates with less than an indebted
ness of 10000 shall elect an assignee by
majority in number and amount, but that
all estates with an Indebtedness exceeding
$4,000 shall require majority in amount
and majority in numbers, but excluding in
numbers all claims under 800.
The committee insist that in order that
the abuses which grew out of the old COM
position clause may be guarded against, the
new one should contain provision that no
movement shall be made for a composition
until the party or parties have been adjudi-
Gated bankrupt and an assignee elected
through whom the composition shall be
made. Another of their suggestions in this
connection is that vote of at least three
fourths of all the creditors who shall have
proven their claims and who represent three
fourths, in value, of the liabilities, shall be
required to pass resolution of composition.
Payment under composition is to be actual
money, or at any rate, creditors not paying
in aid of the composition shall not be held
to accept security or other settlement than
net cash.
The New York Times, in notice of the
report, while conceding its interest as the
beginning of an attempt to furnish congress
with suggestions from business men regard
ing what the requirements of new bank
rupt law should be, points out one of its
shortcomings. 1t omits the fixing of some
minimum of assets which every debtor must
show in order to be admitted to bankruptcy
unless he can prove to the satisfaction of
the court that his assets had been honestly
cared for. This provision, as the Times
says, would by itself undoubtedly prevent
cases of fraud such as occurred under the
old law.
Congress is not likely soon to address
itself to the tough task of framing bank
rupt law. Doubtless there will be ample
time for all suggestions to be made that are
to be made by the business men of the coun.
try before it makes its first draft.