The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1882-12-21
The Bankruptcy Bill.
From the N. Y. Times,1

The bill which the Senate has now taker
up Is very elaborate one. 1t takes It's nam
from Judge Lowell, of Massachusetts, WIN
framed 1t, out 1t has been submitted to man,
Oh The mercantile associations OF the country
ana has been modified to meet their criticism
ana suggestions. 1t consists practically OF wv,
parts One Is The rules OF law determining
The lights OF creditors, what are act OF bank
ruptcy, what are the conditions OF relief, VIVA
are the rights OF company and private cred
llors, What creditors may be preferred, ane
other like matters. These are In effect codifieG
from the decisions OF the courts in this coun
Try and In England, and, from the statutes &c
lar as they a.e consistent. Judge Lowell il
SAID Dy Mr.. Hoar, who introduced the bill Ii
The Senate, TO have had before him some thou
SANDS OF bankruptcy cases and his coditicatior
Is undoubtedly as trustworthy rs any is likely
To be. 1t is claimed for it mat it will secure
greater degree OF uniformity in the treat
ment OF cases, especially in the first years Of
lne operation OF The new act, II 1t should be-
come law The second part OF the bill re.
lates 10 the administration OF the law. A dis.
tlnctIve feature OIL IL Is that the settlement oil
the estate is placed III the hands OF the cred
ltors, through trustee, or trustees, to be
| chosen by The majority in value and not less
THAN One-thlrd III number OF the creditors
Inc trustees may be aided, if the creditors
| chose by commute OF direction OF three per-
sons Ihe court may refuse TO confirm trus-
| lee, or may add 10 their number, or remove
one for cause, or I'LL vacancy, OF appoint u
committee OF direction Ii one be not chosen
by The creditors. In case no trustees BIZ ap-
pointed by the creditors or the debtors estate
shall not exceed 81 900 a Commissioner acts
rs trustee er oticsO.
Another Important feature, and one which
Is extremely valuable, is the TACT the expenses
OF bankruptcy are met by salaries, PAID from
the Federal Treasury, Out OF Il UNIFORM tee OF
sou Ior eacn CASE, with $40 additional, which
covers all expenses OF recording. This pro-
Vision has several merits. 1t keeps the ex-
penseS down; 1t enables them TO be calculated
IN advance; it removes The temptations, al
ways great under system OF tees to prolong
the llLlgatlon, and finally, 1T tends TO uniform,
consistent, and intelligent administration OF
the law. The salarled officers are OF two
grades, Commissioners and Supervisors. The
commissioners are TO be appointed by the Cir.
cult Courts, Two Judges cOncurring, one of
whom must ne The District Judge. they are
limited IN any State to the number of members
OF Congress, and must be as much smaller
number as may be consistent with the business
OF The cucult. They are 10 hold meetings.
hearings, and examinations on the order OF
the DStIlcG Judges, VINO must approve their
acts and may remove them. Their salaries are
10 be -, OUU veal, with y somewhat indefinite
allowance within the discretion OF the Judge
The Supervisors are to be appointed by the
Circuit Courts, to have general supervision of
bankruptcy business, which they are to care
1ully examine, and us 10 which they are to re-
port to the District Judge and the Attorney
General, With suggestions for Improvements,
Ihey are to receive 5000 and necessary tray
cling and working expenses. Their number
Is limited to one for each judicial circuit
Compositions are provlued TOR by the law.
Ii they secure the payment of at least 90 cents
on the dollar OF Indebtedness they REQUIRE the
assent OF majority in number and value of
the creditors, If tor less, then the assent of at
least three tOurths in number and value
These are the general provisions OF the bill
which the Senate has now preferred to the
Equity" bill. In some respects, and notably
IN us system OF administration by salarled Of
tcers, The former is decidedly superior to the
latter. In the initiative given to the creditors
there is danger Of some difficulty, which how
ever, would seem TO be remediapIe by the dis |
cretlon left to the courts. In the coditication |
OF rules and principles of law and its defini- |
tons, it is impossible to say what are its real
merits and de1ecls. They could be ascertained |
by experience only. Perhaps even then they |
would be stoutly disputed, since the ablest |
lawyers in the oenate are entirely at odds as
TO their probable working lu any case, the |
action OF the Senate in its treatment OF the |
subject with so much promptness Is extremely |
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