Savannah morning news. [volume] (Savannah) 1868-1887, 1882-04-04
A National BANKRUPT Law.


to secure the passage of such a. law by
Congress as will be most Just to credi-
tors, while liberal and equitable to
debtors. Two proposed schemes have
already been presented-one known as
''the Lowell bill" and the other "the
Equity scheme of which has its
special advocates. The chief points OF
these two schemes are as follows:
In the Lowell bill o. the creditors Sc
lect their own assignee. and appoint, II
they see fit, a committee OF direction,
composed Of three of themselves, with
out whose sanction there can be no dls-
position of the assets or mourning any
expense. C2) At least three creditors
are required to file an involuntary petit
ton. 1t is claimed by the friends of the
bill that this will prevent bankruptcy
proceedings from being used as a cOllec-
ton bureau, as it was under the act OF
1867, and which necessitated the re-
peal of the original section of that act
referring to involuntary proceedings.
90 All fees are, so far as possible, es-
tablisbed, and a percentage is charged
with an entrance fee to compensate the
government. All officials are salaried,
and it is claimed the temptation to delay
proceedings is thereby avoided, and ex-
tortions are prevented. (4 The amount
of property exempted from the operation
of the decree is made substantially uni
form for all traders throughout the
country. % The rights of the creditors
are guarded by requiring majority
of those representing at least three
fourths of the value of the bankrupt
estate to accept a compromise. (6)
The honest debtor is discharged
by the law. CO Preferences and con,
veyances in fraud of creditors are striven
to be prevented aud avoided.
~ Crimes are designated and adequate
punishment is provided for the fraudu-
lent and dishonest bankrupt or those
acting in collision with him. (9) The
plan of proceedings under this bill is
framed to expedite business. 90 Off
cials are salaried and are to be officially
attached to the court to relieve it of the
personal duties of supervising meetings,
taking testimony, and transacting other
mere routine work. QD The courts shall
have power to make rules of practice.
Q2) tits claimed that this will be simple,
definite, unequivocal and certain law for
the whole country. Congress will make
it, and the courts will interpret it.
The chief points of ''The Equity
scheme" are as follows: ~ The court
appoints a receiver. (2) Any one credi-
tor may file petition and procure an
adjudication. g. The fee system is pre-
served and enlarged, and an opportunity
is afforded for the exaction of even more
fees in a proceeding under this scheme
than could have been exacted under the
act of 1867 (4 State exemptions are
preserved, and it is claimed that any
State, by increasing its exemption, has
the power virtually to defeat the opera
tons of the law. 90 A bare majority Of
creditors is held sufficient to accept the
terms of the debtors. (6 The debtor
can only be discharged in the discretion
of the court. ca Fraudulent convey
ances are, it is asserted, so loosely pro
vided for that every opportunity is
afforded the dishonest debtor to evade 6
surrender of his property. 81 The
Equity scheme, it is claimed, does moi
contain any penal remedies for frauds
dishonesty or a collision to defrand. Il
this be so it is a serious defect in the
proposed law. (9) Officials are paid in
fees, and a different officer can be ap
pointed to exercise the functions of 6
Register under the old law for each case.
(10 The courts virtually make the law
aud fix the fees and costs. az Thii
scheme is law to be created by deci
siOns, and so Congress in reality con
fers on the courts the power of making
the law.
These are the main points of the two
schemes for a national bankrupt Law
proposed to be presented to Congress as
they are obtained from a circular issued
by the New York Board of Trade and
Transportation. which we have received
We have not been able to so carefully
study the two bills as to justify us in pass
ing an intelligent opinion upon the merits
or dement's of either 1t will readily bt
seen, however, that the above mentioned
New York board strongly favors the
Lowell bill, which, as is asserted in the
circular, has also received the endorse
ment of nearly all the business men Of
that city Petitions to Congress favoring
this bill are being sent to all the trade
centres of the country for signatures
and we learn that some have already
reached the Cotton Exchange of this city
for circulation among our business men.
The above points of each will therefore
prove of interest