National Republican., 1882-12-29
NINETY FEET OF NAMES.
A Huge Memorial Protesting Against the
Passage OF Any Bankrupt Lnw-Moro
Coming.

Coming.
A memorial protesting against the passage
by congress of bankrupt act, signed by 1,2SO
firms and individuals of New York city, re-
presenting all of the principal branches of
business, was presented to the senate yester-
day morning by Mr.. Lapham. The memo
ralists state that the operation of United
States bankrupt law has proved to be an in
jury to the business interests of the whole
country.
/. The intent of bankrupt law has been
supposed to effect prompt and equitable di-
vision of the bankrupt's estate among his
creditors and to afford relief to honest and
unfortunate debtors, and to those only. In
practice, however, we find that it has not pre-
vented fraudulent preferences and the possi-
blity of U!.aining discharge by the pay
ment of small dividend, or frequently none,
has proved constant temptation to dishonest
persons to contract large debts and enter into
wild speculation, looking to the bankrupt act
for compromise and discharge, while we re-
gret to represent that this course of action has
been facilitated by the collusion of dishonest
creditors, with the aid of dishonest attorneys
From the experience of the past it is well
known that the honest debtor, who, through
adversity and unavoidable losses, becomes un-
lief afforded by the bankrupt act. His crcdi.
tors, as rule, are liberal in granting him eX.
tension of time to pay his obligations or in
compromising their claims, for it is the inter.
est of merchants and manufacturers to assist
this class of honest debtors and to help them
to continue business, and for such no bank
rupt law is needed.
9. The intent and purpose of bankrupt
law has been supposed to effect an nexpen.
nj m Z
rupt's estate In practice, however, It's awell
known fact that the dividends to creditors
under the operations of the bankrupt law
have been exceedingly small, and the pay.
mcnts thereof long delayed, and in many
instances no sufficient dividend attained to
pay the expenses charged for filing a claim
In our experience creditors collected, prior tC
larger percentage on what was called bad
debts than could be collected while
the law was in force, notwithstanding that
it might happen them, in some particular
case, some creditors, by their diligence, ac
quired preference over others. Upon this
point careful estimates have revealed the
fact that the average percentage of dividends
from the estates of bankrupt merchants prior
to the passage of the bankrupt act in 1867
was about 80 per cent, and that during the
existence of said law the average per cent. col
| lected was less than 10 per cent, while out.
side of the principal cities it was less than
per cent
3. The practical effect of past bankrupt
| laws was to destroy confidence on the part Of
capitalists and damage the credit system
From the year 1868 to 1877 various amend
ments were made to the bankrupt law, unit
| it became so unsettled and difficult to under
stand that in 1873 it was repealed. This re
peal, together with the resumption of speci,
payment, revived business, and the whole
country was never in a better or more pros
porous condition than at present
4. Our first national bankruptcy act wa
passed in the year 1900 and was repealed il
1903. A second bankruptcy act was passed
! August 19, 1871, and this was repealed in lS43
after which general revival in commercial
affairs ensued, which continued, with TEN
porary disturbances, to the period of the wa
of 1861.
5. 1t was well-established fact that durin,
| the period of the last bankrupt act, III antici
patton of bankruptcy, the assets Of the bank
rupt were very frequently hypothecated
| hence no assets, except such as might be pur
chased as advertised in the daily papers, fol
the estate of bankrupts. The nominal asset
proved worthless, or nearly so.
Mr.. John p. Gould, of New York, who act
lively opposes the bankruptcy system, has beel
instrumental in preparing and circulating th
above petition, as well rs another of almos
equal magnitude in Chicago, which is expected
| here soon. The signatures to the presen
memorial fill roll of paper more than II inet.
feet in length. Among them are the sigma
lures of L. S. Jatiray & Co., William IL. Lyol
& Co., Lester, Whitman & Co., Butler, Pitkil
4 Co., Halstead, Haines q Co., Ii. b. Clafil
& Co., the Goodyear rubber manufacturing
company, Bates, Reed & Cooley, Belding Bros
& Co., Guiterman Bros, Ives, Murphy 4
| Bonar, Garner u Co., the Waterbury bras
company, the American percussion cap asso
citation, Eberhard, Faber q Co., w. II. Schiefl
elm & Co., A. S. Barnes & Co., the Nationa
tube.iron company, c. III. Delamater q Co
John Roach, Enoch Morgan's Sons g. Co., tn
Atlantic Giant Powder Company, the Russell
& Erwin Manufacturing Company, Acker
Merrill 4 Condit, John J.. lIosbrouck & Sons
Austin Nichols A Co., Brokaw Bros, Shep
pard Knapp, McKesson & Robbins, the Anne
Plow Company, Barvo & Dotter, the Bradley
& Hubbard Manufacturing Company, tn
Seth Thomas Clock Company, the Woonsockc
Rubber Company, the York Street Flax Spin
ming Company, the Eagle Pencil Company
Luyties Bros, Mclaughlin Bros l.. II. Til
lotson & Co., Solon Palmer, the Hazard Pow
der Company, and more than 200 others.