New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-12-19

be tNus az IarateI luulcINI nori
ence OF fhe business men Congress- rs Wen ~ i We
sni r. gPG@ 1ai cont ra far behind IN
work IFS calendar crowded and the 5ySeespectfniy
sargeSt tia il would be einently unjust 10 SrI1
PROPOSE borden upon TINS Dt tht n proper code
Of nea can be established an Cor equI tbs
pioPSt ~" ~ ,cimbiex rules be- attained Ana
IL earesiI, submitted that, If gOOd Jaw a. ~ success
peh0 vent al tho adoption 81 incOngruous anu ny ~
devised rGls the provisions Oh 'nS e'J direct special
rendered migratory ana hopeIatlSc; mint fbt only
and ceiifed bankrupt law Is. Ia our S
true system which Is capable OF successful
zion. WIZ
Tn conclusion we oppose most earnestly the adoption
,ftbe so-called equity" "chancery" schemes rs
,errici,us and undesirable. The usual experience OF
Itoauts no have engaged III that class OF htgauos
lnown as creditors bill has been entirely unsats-
factory and yexatous. The proceedings are eolhpiv"
ted yey much is left to the soealied olh
erection Of the COrt"a very dangerous power IN Ehy
;nsaUces as expcrence teaches uniformity OF pTac
tce or procedure would be well nigh lmposslDe,ii
OF -ciroumlocution and inevitable delays wouls
ensue. and positive blockade Of hgddom T' be oyer
in the United states courts which cOulu OILY Do ~
come by the creation OF new 1udcl1i astii f a VIZ
appointment of a large number ~ additlohaI b
HesiCg il is again submitted that an lnsnpelapie on
lection 10 these proposed and socaed equity scnSes
- foYnd i'm fine total ignoring Of the creditors, ana the
lacing OF the assets estate III the hands oil that
Creature o. the court called IeClI'eL an 80, az M
perence with this class of fayortes should prov a. u
sayory under the National system az Il has III state M
gallons the dividends declared TO creditors "ouu w III
dniIcssinal indeed "
The great commercial interests of the city OF NewYork
<egard the adoption of honest, equitable ana mex
ensive bankrupt law national necessity But they
believe that this law should be uniform 1t should DC
eodiaed should be definite and certain 1t should DC
conceived in that broad spirit of stateslnanshp when,
while regarding no person or section VII CONSIST eeis
wants and best interests Of the Whoo NAHUM W o
late accordingly
A.E PILLsBURY's ARGUMENT.
An argument was made by \. L. Pillsbury esq,
of Boston. in behalf of the Boards OF Trade, OF
which the following is an extracts
1t is understood that two widely different schemes
been or are TO be presented the consideration OF
COngress. one is TO the eject mat palhrt. "a, Iit
be administered in the district courts OF tle 0iuteG
states courts OF equity, upon common c[t tI
b, under the ordinary equity procedure Inc O,Ier Is
10 the ACT OF 1867, DU, Onlttng some oil IN
features ana introducing others "mch are ne" anu Po
iey General considerations bearing upon these
respective schemes, drawn chcly IRON experience ~
equity ami bankruptcy practice, are Hett "l.n
iirSt-Tnc apparent simplicity Of the hrst nalht1
Rcncne Is us attractive feature This however Is
mol oi paramount lmpOltau II Is ven q. ', ID OIL
as possible, creation Oi unnecessary oces anu oii
cia machinery; but must be kept IN mind tunt tde on
JeSt o. T If ' b9nFiIi"r esteS Whatevcr
is esseuu 20 tins purpose should DC suppheu even at
SeeDUd -General experience seems To have settled
thai bankrupt estates cannot well bee administered III
courts O equity according 10 tnclr established loiuS
Pernaps Ie strongest o thus Is found ia tAs
1act mat s8rly all COMMERCIAL nations, even tuOse hdF
lng the equity procedure have also special bankruptcy
system ng.dbiy England, "hial, WIN MS eAnoIateY
eauppcd OF ChJncery has Tor centuries required
an edGa!y elaborate special bankruptcy system Ia This
Inended tsf the legislative boy which has been re
peaediy called upon Tor the establishment Oh o"nA
that the idea has never before been advanced;
tits more probable that II has been discussed AMI dis
missed as inpracuca0e. Inc Ohtcd states Dah]Ilpt
act 1871 was drawn by one ~ the most eminent
equity lawyers OF ms time, Mr. Justice story whose
IaIniiary with equity PIocsgHIe "mPy qa"1n'u i mn
md AalI- j
t",oi % ~ ie:t of TO usse courts il Inc
had bell, ed Them capable 81 administering II efficiently
ThirI-iAt apparent simplicity G the scheme Is de-
ceptiye .e every lawyer knows Equity procedure
T9pr1Ir slnw cuin6rous and co,nnic,ied Ii usually
involves decays and expenses great pracucaly TO
pronib It, administration OF a majority Oi bankrupt
estai.s How lar these would be aggravated by throw
ing upon court 81 equity the great volume OF BANK
ruptcy business easily be conceived Nor is The
scheme By any means simple 1t looks.
All the objections 70 registers and assignees
be urged against receivers with az least eqnai lore
F0trthfhis scheme cannot De carried into effect 10y
a simple bill comforting bankruptcy jurisdiction upon
the district courts as courts VI equ!' az, a l9 o
details must be specially provided Tor; foi example e
person OF persons who may invoke the jurisdiction must
be designated the circumstances uhuer winch IL iua3 D
Invoked defined the dissolution OF attachments provided
1.-THE lack of which provision proved fatal to the bank
Tupt law of 1S11), exemptions settled, fraud and fraud
uent preferences dealt with ANA restrained the subject
Inuch farther prolonged.
FVh-A judcious provision for composition with
ruPcy system. court Of equity is incompetent 10 Zeal
therefor which. to be efficient, must be- as lul and pre-
else under ilds scheme under another.
THREE METHoDs DISCUSSED.
Ginh- All those matters must be provided for appar-
entity by one of three methods; Either by direct enact
ment Of Congress- by general rules TO be established
by the Supreme Court by rules to be established by
each District Court for itself.
II the method first named, which ia obviously the
proper one adopted the simplicity supposed TO be
desrab.e IL cone ana the rsal5 %in 0f bankrupt act
almost quite az elaborate ana rs lhat OF
1867. And Such viii be open TO the further seri
Gus whole but collection OF iDcoherent fragments Of
bankruptcy law engraited upon foreign system In
addition this the benefit OF eleven years of judicial
animation and construction OF the former act VIII be to
The second and third methods above suggested are
probably Unconstitutional and certainly undesirable,
result not in uniform laws the subject Of bank
ruptces throughout the United states Tor which alone
Congress has power to provide but Ia as many different
systems bankruptcy as there are judicial districts.
SereH-lhc diincuty last suggested Is TO great ex-
welrawn statute to steer by and we shall have close
approximation to uniformity throughout the county.
Lett to the general principles Of equity, which each
court will interpret and apply IN It's own way the opera
frcts except when and disputed questions
carried at great of time and money TO the highest
tribunal tor Settenentj thng not TO De cOutcd Dul
avoided so Tar as possible
ADVANTAGES OF the LOWELL BILL.
The bill prepared by eminent Judge of the United
States Circuit Court, which has been laid before Con-
cress differs from the scheme above considered. in
that 1t embodes special system,
pressy designed for and adapted to the
ration bankrupt estates II is not supposed
10 be- beyond criticism Many OF its provisions may not
commend themselves the approval of Congress, and
it will doubtless be amended in various particulars
should il become law. But II goes upon the true prin
cipe Of legislation this subject namely, that the
rules OF a system in which uniformity OF oper
alton Throughout the country is essential
feature but which to be administered by slxtyeight
independent courts In many districts, should be cOd
fed into a statute. The favor with which the Lowell
bill been received by trade associations and the mer
camille community generally may be taken as at least
. an approval OF its general plan and purpose.
Tue Lowell bill, while approaching the most desirable
result, yields somewhat 10 the general law which re-
cures TIE offices OF the clerks OF the district courts TO
De maintained by fees without expense TO the Govern
Inent the importance OF this future OF the bank
rupt law viii warrant the invasion of the general
vision lar may DO necessary to the purpose of
totally a3olishing the payment of petty fees. No