Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1884-01-18
A NATIONAL BANKRUPT LAW.

Not the least among the important meas
ures which it is hoped Congress will pass at
it's present session is National bankruptcy
law. The experience of the country during
the yeats that have elapsed since the repeal
Of the late law has proved beyond all ques-
ton the desirablity of National bankrupt
cy system, and the business community is
almost a unit in its favor. As Senator Hoar
pointed out in recent speech, since the old
law was repealed there have been over 100,-
000 failures in the country, and the liabilities
in the failures Of the past twelvemonth ex-
coed $50, 000 600, yet no man who is a debt
or can get his discharge If any creditor who
lives beyond the reach of the laws of his
State be unwilling. Commerce and manu-
facturc and trade know no State lines, and
the only way of securing justice is by the
enactment of a National bankrupt law,
which shall also know no State lines. Such
q measure will benefit not only the CONNER
cial and manufacturing creditors OF the East,
but even more the debtor communities Of the
South and West. 1t is contrary to reason
| that debtor in such community should
have to pay 10 per cent interest when money
can be borrowed as low as per cent in the
great financial centres; but such exorbitant
rates must be expected to prevail until O
National law assures the creditor security
and divides the debtors property Justly and
cheaply in case of his failure
| OF the bills that have been drafted, the
best, probably, and the one that has founc
the most favor, is known as the Lowell bill
which was drawn by Hon. John Lowell
who is now the United States Circuit Judge
for the New England Circuit and was tn,
District Judge in Boston during the Who'll,
period that the last Bankrupt law was il
operation. He aimed to frame measur,
law, correct its defects and prevent il
abuses and he took great pains to proven
litigation by clear definitions of all disputed
points in bankruptcy, and exact statements o
the jurisdiction and power of the courts
Some Of the leading features of the Lowell
bill are these any person having provabl,
debts exceeding $500 may file his petition
as voluntary bankrupt, and involuntary
bankruptcy may be secured through peti
ton by three or more creditors whose debt
aggregate at least $780, or by th,
petition Of at least fourth of thu
creditors with debts to that amount, if the,
are twelve or less in number. Thu
old evil of interminabe proceeding
is prevented by requirement tina
the bankrupt must apply for his discharg
in not more than six months after the adiudi
cation, while the rights of creditors ar
guarded by the requirement of at least
three.fourths majority in va'ue to accept
composition. Great care is taken to proven
preferences and conveyances in fraud o
creditors. The old system paying register
by fees, which gave them always large an
often enormous incomes, gives way to CON
missioner in each Congressional district a
a $1,000 salary with supervisor in eac
judicial circuit at $4,000 salary. The Coz
Of bankrupt proceedings to the brnkrur
estate is further diminished by other reform
in the administration of the law.
The bill is long and very elaborate one
embracing, as it does, over one hundred sec
tons; but the main points are those summar
lied above. 1t is earnestly TO be hoped tht
this bill, Or one equally good, will be adop,e
by Congress without delay.