New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-13
BANKRUPTCY LEGISLATION

OF all the questions likely I'D como uP "9
the ensuing session of Congress, DanhruP"3 -
almost the only one still outside the sphere "
party politics Fair progress toward SAFE
factory legislation was made last session. Inc
judiciary Committee of the Senate ailer n'o"t "I
of laboriOus correspondence ana o".oi
consideration of the various drafts suo"'i, =.
to them, reported the equity scheilc' VIM
lieu of formulating new code Oh 'Pi
engrafts the administration or panh'"P''y
upon the equitable jurisdiction Oh inc FTuoi',
Courts The Judiciary Committee OF inc Ilou'o
ronor.ed the Lowell draft. Two proposeu syS
toms therefore. representing the Official ana tno
unofficial methods. are before Congress. Noi
- n 70 he reoretted that each side OF 80 lIlpor
st = orostion sbould receive the amplcst con-
sideratiOn. .ha
Tho noint nt issue-whether the court or the
croditor shall control the liquidation OF the
estates as old as the history OF pahkruPtUy .91
islution. Precisely the same question u''r"o'
rnblic opinion in England. The BiluSl in,
Lament has discussed fifteen dluereht oi''
vitbout coming to a decision. BanhTup'cJ'
therc as here, has always been Il sore supJeoV
7 io,,idotion cannot occur without great loss 10
tha oesots ot an estate. OF this loss some one
r,rst tal,o the responsibility and bear the
L., Ifit il the creditor he loses all inter
1T - +bo matter after one or two meetings,
and votes his powers away 10 some pIoIeS-
sional trustee, while under an 0tllclal system
the receiver, if paid by fees, eats up the estate
with useless diligence, or, II pald by saiall'
leaves everything to take its chance with the
natural apathy Of one who receives no IN
,,o,, for increased activity,
Last session closed without giving the com
mittee Of the Senate any opportunity of stating
fine reasons which induced them to report an
official scheme. As the matter stands adjourned
"a an early day in December the debate VIII
soon recommence. The subject being again
ripe for discussion, the Chamber OF Commerce
has circulated n pamphlet by Mr.. ID. I. Rob
bins reviewing the history of bankruptcy legs
latiOn in Great Britain, France and the Umted
States The writer claims that the nature Oh
orevious LEGISLATION on the subject Is due to the
too servile imitation of English precedents.
The experience OF the old country he quotes
rather AS a warning than an example. After
warmly commencing the French law, he says:
fIet us mark how tvere the French law is as compared
with our own; the immediate arrest Of the debtor; his
Incarceration until his innocence OF mercantile irTegu
arity has been proved by close examination OF the
hooks: the severe penalties for eHravagant rate O
living, or for gambling in stocks. Ii would be impo'-
ebe forms to inaupae such law In this country with
ont previously charging jals But are we the
better for our loose legislation Are not the frauds ana
commercial SaIite OF some OF our traders the ds
grace OF this country ask this Chamber, there not
men holding prominent mercantile positions In New
York who under the French law, would have been sent
TO the secuson of prison cell mention no names
: linda 4nu al instances
that there is not a member OF this Chamber who could
not name some OF them. I ask the Chamber to seri-
ously consider whether by the cncnce OF our laws to
nsoyent debtors have not facilitated mercantile dis
honesty and given national encouragement to crime
tribunal which Sits narrowly the conduct Of every
man who has failed powerful public instructor For
one who is detected and punished dozen trembe at his
fate The reports Of in the press become power
fnl element OF public guidance and instruction. with
the thousand opportunities Of speculation outside a
mans legitimate business which lead him to take risks
tbe loss OF which will be his creditors and the profits his
own We need moro than any other nation the warnings
convey ed by such disciplinary system as this
AS the former chairman of the committee
of the Chamber of Commerce on bankruptcy,
Mr.. Robbins is entitled to speak on the sub
iect with considerable weight. He admits,
however, that his views have undergone an
entire change; that, having been formerly an
opponent of the official system, he is now its
warm advocate. In support of this change Of
front he quotes the language of Samuel Morley,
NJ p, who has stated in Parliament and out Of
it that liquidation under the control of creditors
is farce. Another eminent authority quoted,
Judge Lowell, points out the folly of leaving
matters in the hands Of creditors and the I'M
pOrtance of machinery which will act with
out being put in motion by them. In the
Lowell bill the power is vested in the creditors
and their trustee, and the action of the court
is passive and consultative only Either
therefore, Judge Lowel's views must have
undergone considerable change, or else the
draft which goes by his name represents the
views of the Boston committee for whom it
was drawn, rather than those of the eminent
jurist himself
The draft reported by the Senate commit
tee has one great argument in It's favor-it is
the simplest bankruptcy bill ever drawn. 1t
| laws down certain broad principles of admin
istration and leaves the court to expound and
administer the law. 1t enables the court. by
its rules, to adapt the procedure to widely
different conditions, and SO affords the only
means of escaping the difficulty Unforeseen blythe
founders of the Constitution who provided
that we should have one uniform system for
| the whole country. Both the House and the
| Senate being committed to separate bills. the
| most likely course il that the matter will be
referred to conference committee The
chief point IN dispNe-the election of the trustee
admits Of a solution. The latest suggestion is
that contained in bill introduced into the
British Parliament last year, which provides
that the creditors elect the committee of in
spection, and the committee elect the trustee.
Another plan is that adopted by the French
law, under which the creditors nominate and
the court appoints. Either proposal would
-. a Lnnin for cnmnrnmisn-