The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1882-03-25
THE BANKRUPTCY BILL.
some Criticisms ON Mr.. ingalls, Bill by n
Member Of the Texas Bar.
To the Editor Of the Herald:

During the period of the deadlock in
the senate, early last year, the deliberations
of this body were interrupted by resolu-
ton that the sub-judiciary committee be
empowered to sit during the coming yaca.
ton for the purpose OF considering ques-
tions growing out OF proposed national
bankrupt law. The resolution was passed,
and accordingly the Ingalls, committed"
occupied itself during the summer with the
work proposed, and for tie purpose of asccr-
I aiming the national feeling upon the sub
ject and learning the views of those inter.
csted in trade or commerce, or who had
made 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
Is shown in senate bill 1872, which
enclose 10 YOU, being indebted TO the
courtesy Of senator Coke for copy. Ii is
understood from replies received from
all quarters that a strong majority favor a
national law, and the doing away with the
various conflicting assignment laws existing
NJ present in the several states
The law proposed is praised for its com.
prchensivc bn,adth, its fairness and espec-
tally for its brevity, Whatever IL merits or
dement's there is little doubt that the pas
sage Of national bankrupt law is de-
handed. As was very iorcbly stated by
Mr.. Wagner in his address last year TO the
National Bar association, bankrupt laws
grew up with the Jurisprudence of all the
principal foreign nations, and none of them
haYe yet thought it possible TO 10 without
them !, nor have our own people, If we con-
slider the number Of assignment and inso-
vency laws existing upon the statute books
of the several states National prosperity
stimulates general speculation, and the
taking of undue risks, and neither treatises
upon public economy nor the disasters OF
the past have any noticeable effect in check
ing speculation or In limiting the "specula-
tive period" "There is no such word as fail
says Bulwcr,' ''in the bright lexi-
con of YOUTH but, alas, it
is word inscribed In deeply shaded letters
on the ledger pages of almost every great
merchant II his argosies come in, three
out of four OF those Of his neighbors are
shipwrecked
Tho bill introduced Is open to discussion,
and perhaps 1t may be interesting to sug.
gest briefly some OF the objections that may
perhaps be urged against its passage In its
present form. 1.-The proceeding, II is said
ais by simple bill in equity" A very
simple arrangement to accomplish all that
was done under the old law, without any
nonsense In it, Let us see what rules may
bc 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 thirty'seven pages
In the finely printed manual. Under rule
AZ parties TO Bills" are forty decisions
from supreme and circuit courts upon the
proper Interpretation of the rule and the
law as applied to parties. Under General
Orders in Bankruptcy are thrty-seven
additional rules, and numerous decisions
cited, containing ten times as
much matter rs is TO be found in
the entire bill before MS. The rules required
in equity proceedings were dcyised for
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 tho
interest OF conscience, good faith and
reasonable diligence but we need not
turn to Mr.. Charles Dickens great chan
Gerry case to be reminded that equity pro.
ccedings are according TO all experience
slow, and an inspection of the limited num-
Der of such cases on federal dockets might
also suggest that some law.learning is
requisite to master the simplicity of the
system,
The principles that underlic all bankrupt
laws are well established, and IL appears
that In senate bill 1882 they are very
fairly and most concisely stated, but IL is in
the administration Of bankrups laws that
the difficulties arose, and IL 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 an
annoying responsibility Every one of
the nine sections of this bill of five
peges, bristles with questions that
must be answered through rules of proceed.
ure, or must be RENTED TO the courts. Per-
init me to suggest ut random few of them:
In what position would bankruptcy pro-
.oeedings Instituted in behalf Of or against,
4 debtor place property in the hands of AS.
sigDees now acting under the authority of
any existing state assignment law, ,or other
assignment; would receiver in bankrupt.
cy take II from the hands OF the assignee,
or would there be the possibility OF bank.
ruptoy without an estate for administra-
lion, or could there be dual system =?
A similar question affecting jurisdiction
was long time u matter of discussion In En-
glish courts, ana was finally settled by an
act of parliament, This question was
brought before our supreme court under the
law Of 1871, and again under the law OF
March 2, 1867, In ro Christy, 3 Howard F;
Meyer VS.. llellman, | Otto. Would 1t not
be AS well that, in a new law, this question
should be settled 10y the terms OF the act
itsolfP
Again The supreme court of the United
States, in a long line Of decisions under the
old law, defined insolvency thus:
Insolvency means an inability to pay debts
M they mature aud become due and pay.
able "roof, vs.Mastcn, 10 Wall; Buchanan
vs.. Smith, III Wall. The bill before us de.
fines but one turn in the proposed actin.
sclyency In this act shall be deemed 10 OK.
ist only when the debtors liabilities exceed
IN amount the value OF his property liable
20 execution, and available debts due BY
him"
Now by what method, in what form.
through what character of PROT are We to
determine the value of u debtors property
subject to execution, and the value of his
available .dcbtst We assume this is an
equity proceeding aud this would involve a
matter Of account and this matter must DO
referred TO u master in chancery tn deter.
mine, and delays must DO inevitable, The
court Is not called into activity for such
purposes. In an English case, the King
vs.. The Bank OF England, II. and aid. CIT.
MIR. Justice Best is quoted us saying, "il
xe were to grant this rule We should make
.nureolvos auditors IN all thp trnnint a..