New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-10-17
A NEW BANKRUPT LAW.
ARGUMENTS FOR AND AGAINST 1T.

p""NH pt INV, ana IL so WnaI tne geneIdl
and chief provisions of the act shall be- are qucs-
lions now discussed widely among business men and
lawyers. There is a considerable number of persons
IN TINS community, many of whom are thoroughly
familiar with the workings of the old national
bankrupt law as well as with the State insolvent
and assignment laws who assert the confident be-
lief that it would be much better for all classes OF
honest business men if there were no law upon he
subject at all, either State or Federal. This opinion
as to the advantage of having no bankrupt law nor
anything which should be an equivalent to 1T has
been earnestly taught and found many disciples
among English writer's and traders OF late.
The great difficulty, it is said, with the workings
OF any bankrupt law in England has been, as it has
here, that however vast the amounts of money that
go into the bankruptcy courts very little comes ont
In other words, the expenses, whether from many
and excessively large legal fees from fees illegally
eXtOrted under cover of the law were large that
a great portion of the bankrupts estate was eaten
mp in this way. Creditors to feel that if they
had TO lose their money it might as well remain in
the pockets of their debtors in the purses of the
officers of the bankruptcy courts. Even the reform,
from which so much was hoped, which transferred
the assigneeshps from lawyers TO some one or more
Of the creditors, did not meet with the success that
was hoped in England. Such an assignee has gen.
rect of dividend scarcely worth the time he
ought to spend upon the matter. The whole thing
is therefore likely 10 he neglected. it is said. and the
prospects Of dividends grow smaller and smaller
new scheme recently laid on the table IN the
House of Commons proposes that the Controller in
Bankruptcy. and his staff shall act under the dl-
rccion of the Board Of Trade winch there Is politi-
cal office. This proposition is holly opposed on the
ground that it will lead TO still greater troubles by
making the conduct Of purely judicial proceedings
an element IN the stormy arena OF politics. as II Is
expressed by one English economic writer
DgFFICULuE, IN THIS COUNTRY.
While some of the arguments used by the English
opponents Of abankruptlaw donot apply TO the state
Of affairs in this country, yet there are many who
think that the same conclusions can be reached rs
10 tho result, here. Colonel Will IN s. Kelley, who
has charge Of the assignment department in the
Court Of Common Pleas. and who is probably rs
familiar with the workings OF insolycnt debtors
laws rs anyone i'm the country, is of this opinion.
He think, that if one wants to keep people honest,
one should avoid putting severe remedies in the
hands of the creditor; that with nothing hut tho
estate Of the debtor to look 10 there would be fewer
bad debts: and that Will" hardship might re-
suit i'm some cases 10 leave thc creditor and the
debtor 10 fine uoIcIrs of the common law would be
better for individuals and for commercial interests
generally.
ON the other hand. there ia now in nearly ALL if
not in an. OF the utcs in~olv"ut ora~slgilWenl
laws SPECIAL preceding. under such laws for IN
stance. IA" "Ivo-tlirds Act IN tins state, en-
able the debtor who finds himself overwhelmed
with debt e. give ny what he has 10 his creditors,
and 20 star. again uucmbJrras,rd by lh's" claims.
When The successful ,1or to repeal IN" bankrupt
law was made, four years ago, the greatest
Influence i'm thai direction came this city. The
chIcl argument used then was the cNpcnNiNcutN7 or
too that some O: thc argrs business houses OF TINS
city expected that under the state lnSolvent aci5
they would boo named as preferred creditors !" SUI
hrirut extent m future rs .igumcuS made by th'lr
~. IN, ~
than they would have under the National bankrupt
law In this they are said 10 nave b',h
con ilcrahly disappointed; Tor lhcy I"uH1 Ih't the
large preferred creditors moro often turned ON 10 DC
ucuhcr. OF the debtors family or SON" al hlS more
immediate friends Many of the enemies OF the Ola
blnkrupt law are now in favor of a new aud better
one the arguments used are several The lrsi and
Fundamental one Is that this Is The only WY 10
srcurc the equal distribution of an insolyent
said the various sta have each its own lnSolVent
law. 4 debtor can only secure discharge
from the creditors within h's own STATE ana me
90 .utrt between these different laws Woikn great
in,nuaItv and Injustice. The prrcrrinC OF special
creditors in ASSIGNMENTS X urged as auolcf source
Of injustice. Again, m some states INC amount
that can .c held under the exemption laws puts an
unfair a vantage into the hands OF some unscrupu-
lous debtors and their creditor friends.
JUDGE LowEIL's ACT
II is said that strenuous efforts Will be made TO
get n new bankrupt law passed by the
next Congress which shall be free from tho
grave objections made to the last law.
The proposed act already presented to Congress
which has attracted the widest and most favorable
attention Is that drawn. aud aft"rward revised, by
Judge Lowell formerly OF the United States District
Court now promoted 10 the United States CrcnIt
Court in Boston Judge Lowell presided IN the
District Court during al thc years That tho Oh law
was in operation. and had a gooi opportunity, so
far n. "a Iudup's opportunities 60 90 ascertain uS
weak and strong poipts; although ne did hnt nave
the chance to study 10 FROM the practitioners
point of view. His law would provide not only Ter
The appointment Of Registers in BIukrurt,E with
substantially The same duics aS formerly, but also
Of one " Supervisor IN Bankruptcy m each dlS-
trict This officers duties Woull b. Ia have gem
crtl oversight of the work of registers 81 rS' ana
a -iguccs 30 his disulct aud % bring TO me al en-
tioa at the District Judge anything that he might
discover wrong in their books, accounts, records or
general methods 81 Administration. 1880
one striking prov of thl~ bil Whirh mas prcn
sharply criticised j. tina permitting the issue Of a
warrant Tor the arrcst of any bankrupt WHO is
proved 10 the satisfaction OF the JuiE"io be ABOUT
to- leave the district and Tor Ia, detention uHt ne
gives bail; MS n has been proi"si'd' may 't" 30
grcaJ hardship aud oppression ~ tue h5nIN OF Ah
arbitrary Judge. This Same section also pIoNlhr'
nat the Judge. upon the application of 2ny creditor
er adjudication and before the appOiu tWcnt OF an
assignee may issue warrant to tue nht.ial rrquir-
iughM To- take and keep all the property OF the Doctor
until the assignee Is appointed. Inc fear n"N he'h
c expressed also that serious v"Wphriil"hN nc'"tcl
receiver and assignee m.Eht arise under section -,
which reads az follows: Tho judge may appoint a
receiver before adjudication or before tie assignee
Is chosen when there appears To be necessity there
for
section 81 reads: "Thc bankrupt may. not
less than six nor moro than eighteen months after
the adjudication, apply 10 tho Court for discharge
from ms dcbtsv Under the former law no limit
liked within which the b9nkrupt must make the
application except that il must be before tho final
disposition of the cause.
Bnt the chief and characteristic feature Of Judge
LoWelrs bill IL tie provision Tor the payment ot The
registers and supervisors by salHrics. This, 1t IS
Il. IA IthFf 81
that - LARGELY prevailed undcr the old law and
made IL 50 expensive The assignee debtor or cicd-
itors would often submit to such " bleeding" with
out protest, because they knew it would be lmpo-
lite to incur the dIspleasurc OF the register
MIR. BLUMFNsuEL's DRAFT.
The draft OF another bankrupt law by Alexander
Bumenstic of this city has been presented to both
houses OF Congress, and is now before the proper
committees. Mr.. Bumcnsuel is the author Of II
r.nr TN, low and msliCe MmMcr