The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1880-12-02
THE PROPOSED BANKRUPT LAW

THE PROPOSED BANKRUPT LAW
Judge Lowell's revised draft of a
bankrupt law, it is said, will be
urged before the next session of
Congress. The first edition of this
proposed law was submitted to COM
mercial associations. registers in
bankruptcy and others interested in
the subject.with the request for criti-
cism, and in this manner il is pre-
sumed a most approved bin has
been prepared. \ copy of the re-
vised act is before us. and the
care with which il has been COM
piled entities il To cOnsidera-
tion. The Boston beard of trade.
it appears. are already pledged to
the support of the act. and il is
thought that commercial associa-
tions will generally urge its adop-
ton. 1t provides for increasing the
powers ofregistrars, who are virtual
ly made judges, in the beginning of
action. of all matters in bankruptcy.
Under the old law most serious oh
jec;.oa y a7 n.ldc to Tie plan of conf
pelling persons to 60 long distances
to attend bankrupt courts, entailing
great expense upon Them, while by
the provisions of the Lowell bill
courts of bankruptcy are placed
within easy reach of those having
business in them. Under the pro-
posed law registrars are made sala-
ried officers. instead of, as of old,
drawing their pay in fees on the busi-
ness before them. 1t provides that
assignees shall receive no fees, bat
only such compensation as the credi-
tors shall authorize and the court
approve. The entire system of fees
is abolished, with the exception
of pay for clerks, it being
properly held that the salaried sys-
TEN for officers will encourage no
delay or expense in litigation, or
otherwise. This bill so fixes all
these lately abused points in bank
rupt settlement as to enable liti-
giants to know in advance the cost of
any case in bankruptcy. 1t is real
lied that it is not possible to write a
bankruptcy bill, which shall be at
once entirely perfect and entirely
satisfactory, nor may it be hoped
soon to reach that desired re-
suit; but this one is so great
an improvement upon the old
law, which was not at all applied
to the need of this country, and
which simply encouraged rascality,
that it may be safe to try il, since
the general verdict is that proper
bankrupt law is needed. A bill pre-
pared with so much care may meet
public demand, and with the en-
dorsement which this secures il may
properly be made law. The evils
that were born of the old bankrupt
cy laws arc not arguments against a
law which will protect the honest
debtor and the creditor alike. The
folly of the former laws was in their
permitting rogues TO ply their trade
with the stamp of legality upon it.
Experience should guard against the
repetition OF such folly, and in the
case of Judge Lowell's proposed
law it seems that the objection has
been skilfully avoided. Judge Low
ell may not have succeeded in reach
ing the happy mean which an equi-
table bankrupt law should occupy,
but he has taken a long stride to-
ward il. Such defects as this law
may have can be discovered only af-
ter il has been in operation, but it
may be predicted confidently that
they are not so fatal as to leave the
law unworthy of a fair trial.