New-York tribune., 1882-04-10
THE NEW BANKRUPTCY BILL
OPINIONS AS TO ITS PROVISIONS.

WITH JUDGE LOWEILs BILL
There is a great contrarety of opinion as to IN
merits and demerits of the new Bankruptcy bli
that has been favorably reported by the Judiciary
Coamittee of the Senate. The sentiment is very
general that some Bankruptcy act should he passed
at the present session the opinion is general also
that il should be less complex and Its operations
less expensive than Procedure under the 0ld laW OF
Is67 The present proposed bill is short and differs
from predecessors especially in the large dlScre-
tion which IT lodges in the Court i'll the allowance
of preferences, and in the leaving OF matters Oh
practice to be settled by the courts. , -,
A lawyer of high standing, thoroughly famiiar
with the workings of the prevGus laws, SAID re-
Gently that he thought that with a few MINOR moot
ficatons the bill could he made a very enccINc
one. lie pointed ont the provision IN section o.
tha: any conveyance. transfer or payment i1oe
and received in view of bankruptcy may oe SCI
aside ii found TO be contrary 10 the Jn,' r,Su'>oI
other creditors" and thought there suouu nc SOM
Limitation OF time IN this respect Inc heAt PioNIs
ion was also criticised, which says thal molcS
obtained aud used in coed faith. though uisu cess
fully to avert an in pending bankruptcy OF 10 saw
threatened sacrnce of property, or for sickness OF
other necessity. may he preferred III paw VI -
security by the Court ms IL was s'H' "aS od al
exceedingly dangerous provision, and II woalh
prOhahly be found necessary to qndlity IL Nu"S,',
ouerflv This lawyer also thought that It would
have been better if the bill, instead OF allowing w
estate to hc placed IN the hands ol . recover, t.o
choice Cf whom rested exclusively WITH thc Cou!t
had prescribed the appointment ol an 'Nsleieo ~ uo
chosen by the creditors with the approval OF lhe
Cont There would be no dlH!cnlty dhoI aIr"Ig-
ing the practice Cor The equity rules coGO ne easily
a,lapfel TO the necessities O bankruptcy practice
Colonel William :. Kelley. WHO diaiieu thc pres
ent assignment law OF this state ana no has lnldc
the subject especial study, saiI that ne lhou.ni
the proposed bankrupt law bad one III MANY Ac-
specfs. He pointed out what ho considered the
faults one after another The hIst was IN hAhE
the minimum of debts because OF which man
could 20 be put into bankTrp'cN az ''Vu. iat
thought man who tailed Tor . smaller ailot.l.
should have the same rights under the DalNiupV
law Colonel Kelley continued: 90 not Dc4IVNc
the nlan of having receivers appointed by thG
Cont. instead of the Old plan OF asS'tueeS%' w M,i
work well. 1t viii be too nke 10 result m ~ Si,V
Il tI.,.. bpIp 4 lH-
tive INVESTIGATIONS arising under receivers az
pninted hy the State Courts IhcD toC' tne t'iIil'
of the bill appear 10 allow the Court 10 slVe os.h. m
rnnt his discharge as soon he has turned over tc
properly which he says he has remaining 10 wy lo
ceivcr This would certainly b9 a dansCioqII1 n
10 do. The same section says, lhls aJ' s"ti @ 80
10 corporatiOns.' When We CONSIDER thal We aiV ~
have in such receiver appoiute3 ~ ulo
lourt rather than an assignee appointed d! tio
Creditors think we catch a glimpse OF the eYliS
that might spring from such system. lhe blH
provides that the debtor shall surrender MS cslac
'exceof so much as shall he exempt rom execution
nnder and by the laws of the state where he e.
Sides This is think, the key to the whole olII
it shows where t originated anu ID wUsq Ve.eTn
If was drawn. Most OF the southern ana western
States have special exemption laws when lrO'ec' Il
large portion of a mans property from execution
Some of them. for instance, exempt mans resi-
dence no matter what its value; though IL may oe
worth so 600 and his debts only. amount 10
$4,000. In the face of such exemption laws ,: ana
under the terms of this bill an Eastern creditor
yould be at a tremendous disadvantage. ANA our
Western ana Southern frlenus KNOW II, ana lhcy
don't mean TO surrender the advantage WHICH thcl
have under these exemption laws II they can hei,P
it. They don't care anything about having b2hk-
ruut law. They are well enough SATISFIED WIN jnclI
State laws. so, therefore, uilnk tha' IIIiS D4iI
must have been drawn by Southern or " esteTn
man in the interest Of the Southwestern states. |
do not think that it will Iecone law, nor 90 |
believe that it was intended that It should. A
bankrupt law was demanded. The W est anG S3uth
prodnced this which they know would satisfy their
const ituencleS as far as any bankrupt law cOuld,
and which they could show to them as an INDICATION
that their interests had not been neglected II was
expected that the bill would be defeated, ana thai
it would then be too late TO present aholher ana
The fact is the South and Southwest are getting
more independent of the North every day. Ihey
arr LuiIdnr their own iron mills and their own
cotton mills and manufactures which formerly
thev had to ret from the North or from abroad
tbcv now are making themselves. They are even
beginning to favor protective tariff TO strengthen
the manufactures already established. Now they
want no bankrupt law which deprl'es theln' as
against Northern creditors. of any henetts which
they derive from their SPECIAL exemption laWs, ana
their best to defeat it, ut all this Is to the PIelu-
dice Of the creditor in the East or North ana Is an
lnjustice.' r ~, ~
the lankruptcy Law OF 1867, and whose proposed
lill was one Of those considered by tie Senate
Judiciary Committee. was a. OulspOken and en-
uhat.c IN his opposition 10 the new Dhl: lie said
that he considered II law to lcgaiize preferences
Now, YOU know he continued, " that II Is one
of the elementary principles IN the operation 0i
Iaul,rupt laws that there Shall he such thing as
preferences. no other bankrupt law that has heeh
drawn IN England or tins country ever before
allowed them. And notice the circumstances under
which preferences can be made money obtained
aud used in good faith, though un>ucct 'sinliy to
avert an impending bankruptcy. or To save threat
ened sacrifice of property, or ior sickness o othcr
like necessity, may be preferred, etc Now, now IS
~ GOOD faith 10 he determined IT IS only
necessary for any bankrupt to swear that Il loan
which he made aud whlcn he wishes to prefer, was
made 10 avert impending RankrnptcY' W Nhat Il
impending bankruptcy = II may mean almost
anvthur tLat the debtor desires. We shall have to
wait lor a construction of that term by the nlttd
States Supreme Court before we kuo" what 10 90 40
with it, Another indefinite expression is III tle
definition of insolvency, which, according TO the
bill shall he deemed to exist only when the
debtors liabilities exceed III amount the Value oi
his propertV Fable to execution and the available
debts due him. What does 'avaliable debts
meant And how can the amount o1 his available
debts be determined
The entire bill appears 10 be in the interest OF
the debtor and to leave the creditor out III 3IOrds
no opportunity for the punishment OF fraud, ana
gives many opportunities for the preparation OF IT,
Besides it leaves larger discretion IN the hands o
the Court than ever should he lodged there"
Daniel c. Robbins, the drug ncre haht' WHO mas
made the question Of bankruptcy laws a special
study was found to be Enthusiastically IN favor OF
We have irIcd" he said, " all the old methods
and they have failed here as they have III England
Judce Iowclrs bill was modelled after the old
DatteTn anil would have been sure to fail too. 1t
was time TO Try something now. he judiciary
Committee by whons lie BIZ was reported, wl'h
Jndce Edmunds at its head, Is perhaps rs able
legislative committee was ever called together III
tins country. one year ago subcommittee OF
three from cdCD OF tnt states MlSNouii N'h>d>
aud Arkansas was appointed 10 cohslGer me ques-
fion of a bankrupt law. THIS was wise selection
not only OF the men. but also because no bankrupt
law could be passed which not agreeable to the
South western States. John j. Ingalls, the member
from Kansas made the original draft OF the blll.
and no better man could have been selected
regard the proposed act is excellent throughout.
1t is Of course to a considerable extent tentative
and will have to be modified IN some inmaterlal
details as experience shall show amendments to be
expelient. But in general scope | do not think any
former English American act can be compared
with il. 10 take up some OF ITS provisions IN
detail; The appointment Of "a receiver by the Court,
inStcad Of an sslgnee by the creditors is Of the