The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1882-03-30
rop %uAsgnuprOy NH.
Some Criticisms on Mr. fnesiis' NH by y
Member ~ the Texas liar.
no tbo rdltor OF Tho Horaldi

TO the Editor Of the Horaldi
During the period Of the deadlock" In
the senate, early last year, the deliberations
of this body were interrupted by u resolu'
ton that the subjudlciary committee be
empowered to sit during the coming vaca-
ton for the purpose OF considering ques-
tions growing out OF u proposed national
bankrupt law. The resolution was passed,
and accordingly the "Ingalls committed"
occupied itself during the summer with the
work proposed, and for the purpose OF ascer-
taining the national feeling upon the SUBJ
iect and learning the views of those inter'
ested in trade or commerce, or who had
made a study of bankrupt laws, addressed
communications to chambers OF commerce,
boards of trade, judges OF federal courts,
registers in bankruptcy, etc, ~throughout
the United States, soliciting their views.
The result of the committees deliberations
il shown in senate bill 1882, which l
enclose to you, being indebted TO the
courtesy Of senator Coke for Il copy. 1t Is
understood from replies received from
all quarters that a strong majority iavor. u
national law, and the doing away with the
various conflicting assignment laws existing
at present in the several states.
The law proposed is praised Tor It's com
prehensive breadth, its fairness and espec-
ially for its brevity. Whatever it merits or
dement's there is little doubt that the pas
sage of a national bankrupt law is de-
msnded. As was very forcibly stated by
Mr.. Wagner in his address last year to the
National Bar association, bankrupt laws
grew up with the jurisprudence OF al the
principal foreign nations, aud none OF them
nave vet thought it possible to Go without
them nor have our own people, If we con-
slider the number Of assignment and iIsol-
yency laws existing upon the statute books
of the several states. National prosperity
stimulates general speculation, and the
taking of undue risks, and neither treatlses
upon public economy nor the disasters OF
the past have any noticeable effect IN cneGk-
ing speculation or in limiting the "specula-
tive period There is no such word as fail,
ssy. ,Bulyer," "in the bright lexi-
con of youth" but, alas. it
is a word inscribed in deeply shaded letters
on the ledger pages of almost every great
merchant. II his argosles come IN, three
out OF four OF those of his ~neighbors are
.hipwrecked.
The bill introduced is open to discussion,
and perhaps it may be interesting to sug-
ge.t briefly some OF the objections that may
perhaps be urged against It's passage IN It's
present form. 1.-The proceeding, 1T is said,
Isis by a simple bill in equity" a very
simple arrangement to accomplish all thae
was done under the old law, without any
nonsense in it," Let us see what rules may
be applicable to "a simple bill in equity,
Before us is "Dety's Manual Of Federal
Procedure" ed. of 1876. There are
ninety-two rules prescribed in relation to
equity practice, covering thlrty-seven pages
in the finely printed manual. Under RUE
Al Parties TO Bills" are forty decisions
from supreme and circuit courts upon the
- alton pt the rnln and the
Jaw as applied to parties. Under General
| Orders in Bankruptcy are thirty,seven
| additional rules, and numerous decisions
cited, containing ten times as
much matter as is to be found in
| the entire bill before lis. The rules r'quireed
in equity proceedings were devised Tor
no experimental system they are results
| obtained from the experience Of generations
and were framed, to Use apt language OF
| Lord Camden, often quoted, at least IN the
| interest OF conscience. good faith ana
reasonable diligence" bat we med not
turn to MIR. Charles Dick ms great chan
Gerry case to be reminded that equity. pr
| ceedings are according to all experience
slow, and an inspection of the limited num-
her of such cases on federal dockets might
also suggest that some law-learning is
requisite to. muster the simplicity OF the
The principles that underlie all bankrupt
| laws are well established, and IT appears
that in senate bill 1892 they are very
| fairly and most concisely stated. but 1t Is III
the administration of bankrupt laws that
the difficulties arose, and it would appear
| that the trainers of the bill propose to remit
the whole matter of administration TO the
| supreme court. Was this done to ayoid.un'
| friendly discussion or TO escape al
| annoying responsibility? Every o.
| the nine sections of this bill OF hve
pages, bristles witt questions ina
must be answered through rules of proceed
ure. or must be remittet to the courts. Fer
nit me to suggest at random a few of them
In what position would bankruptcy pro-
| cced,ngs Instituted in behalf of, or against
a q debtor place property in the bands OF as
1 signees now acting under the authority O
any existing state assignment law, or othel
\ assignment would a receiver in bankrupt
CIV take it from the hands of the assignee
or would there be the possibility OF a BANK
ruptcy without an estate for adminlstra
tion, or could there be a dual system
A similar question affecting jurisdiction
was long time a matter of discussion IN En-
glish courts, and was finally settled by al
act of parliament. This question wa
brought before our supreme court underth'
law Of 1871, and again under the law o
March 2, 1867. In re Christv < Howaru
Never VS.. Hellman, l Otto. Would It no
be as well that, in o new law, tins question
should be settled ny the terms Oh the &C
| ilself2
Again The supreme court of h'e
States, in a long line of d s.slJns under il'
| Nd law. defined insulvevn, 'r.-
Insolvency means an inability o. pay debt
as they mature and become que md pay
able" "Toof, VS.. Mastea Dr. Vs.; Buchs u
VS.. Smith, I6 Wall. The - before US de
fines but one turn in the proposed act-"ln
s~olvency in this act shall be deemed to ex
ist only when the debtors liabilities exceed
IN amount the value of his property. Liable
to execution, and available debts due b,
nim."
Now by what method, in hat form
through what character of proof are we u
| determine the value of a debtors property
subject to execution, aud the value of Ia
available debts? We assume this is al
equity preceding, aud this would involve .
natter of account, and this matter must b'
referred TO a master in chancery tO detef
mine, ana delays must be inevitable. Tn,
court is not called into activity for sucl
purposes. In an English case, the KIM
VS.. The Bank Of England, 2 Is. aud aid. 623
Mr.. Justice Best is quoted as saving, II
we were 10 grant this rule we should make
ourselves auditos to all the trading cor
poraiions in England" And ~liawksbezo
states that When council submitted a mo
ion with affidavit and matters Of account
and calculations OF figures TO the judges o
tie kings bench they rose, AMI one o
them, in%terrupting him, said, This couri
does not sit here a. accountants" and they
retired. We presume that u districi
JUICES will not assume the duties Of &C
countants, and, necessarily, the insolvency
or solvency Of the debtor will be deter
mined by the report Of the master in chan
/ Gerry.
Section 81 provides for composition pro
ceedings, the whole subject being disposed
/ Of in six or seven lines. II we take ths
first clause as independent Of the record. II
would appear that the court has the posei
TO grant extensions and scale debts.
whether the debtor has been udjudged
bankrupt or not Of its own motion, and {
/ constitutional question might, with prOpri.