The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-02-13


TX JUDGE LowfLL's BiLI.-ITs FRIENDS
SUCCESSFUL. -
New YoRx, February IA speeia'
meeting OF the Chamber OF Commerce wa.
held Yesterday 10 take action on tne 'epo,'
NJ the specisi committee on new DARK
ynn,cy Law. whose report presented at tbe
lasf regular meeting deuounces Tue Lower
Iii now pendipg In Congress. the ma
,oyitv ~ those present were members w9o
mover attend regular meetings, aud II aiier-
ward turncd out that they were mainly
conservatives OF eastern mill-ownefs VINO
mad gathered TO oppose the report, wee
President James NJ. Brown presided.
Frederick A. Conkiing orened the battle
bv moving as substitute Tor the special
cimmirtec's resolutions another approving
the Lowell, Bill, and urging it, early passage
anon Congress. Mr.. ID. G. Robbins, chair
man OF the special committee, spoke at
length in Opposition. lie said that the Low.
ell bill has the common defect OF all
American legislation, in relying TOO much
on tecbnicaiities. He cited The Phelps,
Dodge 4 Go. case as an instance OF now
il would work. Another defect was 'nat IL
does not ak q bankrupt to pay single
nenny OF his debts in order 10 OBTAIN us
charge. IL also allows Of composition set
Elements whenever The consent oil one third
OF the creditors is secured. The eXplaba-
tion Of This was that 1t had been drawn IN
the interest Of eastern mill-ownerS and mef-
chants, who can easily aggregate one third
of n bapkrupt's creditors, thus shutting out
! the other two thirds. No bill bad ever been
proposed in any country so defective az re-
cards prevention Of insolvency as this one.
! IL VIII, on the contrary,
INDUCE INSOLVENCY,
rs il offers easier methods Of discharge than
any other act ever passed. No man engaged
| Io distributing goods could afford to have
suoh an act on the statule-hOoks. The
creditor was not a fit person to discharge a
bsnkyupt. In 1869 an act was passed in
Great Briail allowing compositions with
the consent Of four fiiths of the creditors
when under % per cent. was offered, and
of a majority when the offer was over %
per cent, but il had caused such demoia-
| z1iion that it was about TO be repealed.
| Yet that bill was much better than the
| Lowell BILL TIE speaker quoted statistics
| 10 show that during the existence OF the OLD
bankruptcy law the bankruptcies averaged
5000, 00O, 900 PC, year. Last year they were
SG5. ~. 900, This WIS the result or tue
repeal Of the ola bankruptcy Law, and u
| similar revival OF credit had followed the
repeal az the previous bankruptcy Law 10
| 1871. IApplause AS proof that the re-
sumption OF specie-paymeDts had nothing
10 DO with It, The speaker cited the case OF
| Canada, where spccle-p pay ments nave been
continuous. TIE bankruptcies there wbllc
the Canadian bankruptcy law vas III Iorce
Averaged $50. 000,0 per year. Last year,
wheu the law was repealed. they were 81
99S 900. IArplause.] The speaker person
ally was opposed 10 any bankruptcy law at
all but il one was TO be passed he wanted a
good one. The West, which l. now the
great distributing centre, was aroused
| against the Lowell bill or the 50.00O,00O
Inhabitants OF the United States, 40,OO0,0UO
would vote tomorrow against It,.
Mr.. Charles 5. Smith said he was the
rcprt sentative Of some eastern INFLOW nerS,
! but he desired rs large
A DIVISION OF THE ESTATES
of his debtors as the previou. speaker. TIE
only difference between tie advocates and
opnonents Of judge Loweli's bill bad refer
| ence 10 the discharge Of the bankrupt. The
| sneaker believed that il was the sentiment
| Of all who give credit that the man who is
honest and gives up all he has should
be discharged. Applause And nobody
wanted TO mortgage his future earnings,
either. As for q dishonest debtor, Prov.
sion had been made in the Lowell bill TO
cover his case.
MIR. Gardner X. Colby. who presided at
the recent Convention in Washington which
approved Of The Lowell bill, said that that
bill provides for four things: First, the dis
charge OF the unfortunate but honest bank
rupi; second, severe punishment for the
dishonest bankrupt; third, the largest diyi-
dends from bankrupt estate in The shortest
time and at the least expense; and fourth,
protection TO bankrupls against dishonest
creditors, Of whom there were, unfortunate
", many. fApplause.] lie quoted from the
amended bin ia support OF his assertion. Con-
tinuing, nc said that the only objection
made by Mr.. Robbins not answered by
| these quotations was that the discharge OF 4
bankrupt should be discretionary with the
Judges. The speaker was opposed TO this
as a man ard as q matter OF humanity.
| rApplausc Not 10 the Judge. who knows
nothing about business and nothing about
fthe particular circumstances OF any case cX-
cept such as are brought before bin, bnt in
the creditor, who has had dealiOgs with the
bankrupt for years. and VITO knows whether
he be honest or dishonest, should he vested
the power Of discharge. tApplause.1
MIR. ROBBINS CLAIMED
that six mouths previous to bankruptcy
the period provided by The Lowell bills
not enough upon which TO try the bankrupt
as to his career as a merchant. A man
might commence business with fictitious
general capital, might swear to WORTHLESS,
check as special capital, and might go OF
for years demorallzing trade. All he would
lhave TO do would be TO be careful for siX
months before seeking The benefits Of The
law. The honest bankrupt had no need tC
fear the Judges. The judges Of the present
day were just. fDerisive laugbterl They
were Influenced by public opinion, which
was always in favor Of the bankrupt.
Mr. Edward f. Browning opposed tht
Lowell bill, and asserted that MesSis. +. s.
Jsfiray. IL. Il. Clafln, and William Libbty
held the same views. Mr.. Jafiray bad saiC
TO him that rather than have banruptcy
law he would prefer to put the assets of 8
bankrupt into the street aud burn them up
as the tendency of such law was
to increase the number of failures
Under the proposed bill all man
had DO do was to swear that lie haC
complied with certain technical provisions
and he would then be entitled to dis
charge unless his creditors could furnish
proof that he had done some wrong act
within the previous six months. That wa,
too great temptation to dishonesty to sci
before the community. Under the New
York State laws the returns to creditor.
averaged SO per cent. Under the proposed
bill they would not exceed per cent.
Mr.. Cornelius n. Bliss said That if every
other State bad
SUCH A BANKRUPTCY LAW AS MASSACHUSETTS
he would not ask for any United States
law. [Applsuse.l Now creditors of bank.