The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1884-03-07
A Bankrupt Law.
RICHMOND, March 6, 1884

ing. lie says:
"The House Judiciary Committee To-
day agreed to report the amended Lowell
bill" bankrupt act) "agreed upof by the
Senate committee some time ago aad re-
ported 10 that body. W. i. Royal wrote
letter TO the committee in opposition to tie
bill as agreed upon"
have not written any letter TO the COM
mittee or TO any person IN opposition TO or
In favor Of that bill or any other bill. /
cannot conjecture how the statement could
have originated.
However, | have thought good deal
upon this topic, and the statement will
serve me rs an excuse to air some OF my
views.
In the fall OF 1881 the Chamber OF Com
merce Of Richmond city did me the honor
to request me 10 draft a bankrupt act, and
in compliance with It's request did pre-
pare one. Before doing so | procured q
copy OF Judge Lowelps act and examined
It very critically. I came TO the conclusion
that this was one OF the most vicious pieces
OF proposed legislation that / had ever met
With. Before attending the Convention OF
delegates held In Washington In january
last TO consider proper measure OF bank
ruptcy, wrcte TO Judge Lowell for an
other copy OF bis bill, which he sent me.
This purported TO be the third edition OF
il. found il TO be in all essential partieu-
lars unchanged. In the winter OF 1912
the Senate instructed its Judiciary Com
mittee to take this subject under considera-
tiOn, and that committee reported bill to
which the newspapers gave the title OF
" The Lowell Bill as Amended by the Sem
ate Committee" As soon ~ my bill was
prepared and printed it was laid before the
Senate Judiciary Committee, which also
had before il all other plans at that time
proposed.
When | went TO the Convention in Wash
ington had never seen the blllas reported
by the Senate committee. For some time
before I had seen distinct evidences OF
something in the nature OF a ring to lobby
though the Lowell bill, and went TO the
Convention with q line OF thought pre-
pared in my mind that was in direct an
tagonism TO its main features, and | did
address the Convention at ITS first sitting
in opposition to the theory OF the Lowell
bill. That night procured copy OF the
Senate committees bill, and | found that
this bill was the Lowell bill in name only !;
that the Senate committee had engrafted in
it what thought the most important pro-
visions Of my bill, and that ii had incorpo-
rated into il all OF the most important sug-
gestions that had come from any quarter.
From some points OF view, therefore,
considered this bill all that could be de-
sired. but from other points OF view | con-
slider 1t radically vicious; and II it shall
become law, whatever it contains that is
valuable will be more than cOunterbal-
anced by what it contains that is bad.
This conflict Of propositions grows out OF
the nature Of the subject.
Consider for moment who in all this
broad land ask for a bankrupt act. Those
engaged in agricultural pursuits ask for
no bankrupt act; the employees OF corpo-
rations ask for none; the members OF the
learned professions ask for none; the peo-
pie of leisure ask for none. None ask for a
bankrupt act but those who are engaged IN
commerce and trade. Now, OF these a very
large proportion ask for no bankrupt act.
The petty retail dealer who sells for cash
asks for no bankrupt act. IL comes down
then to this-that the only part OF the
population that asks for bankrupt net is
that part which sells in large parcels on
credit. suth rs the manufacturer, The
jobber, the wholesale merchant, and the
retail dealer who sells in large parcels on
time.
Now, what sort Of an acr do they ask
for! Do they want an act, under the pro-
visions OF which their debtor. after be has
sWindlrd them or made unjust preferences
against them, may 20 Of his own y0litiOn
into a court, and there have himself strip
ped OF all his obligations with their money
concealed in his pockets! Unquestionably
not They want all act under the provi-
sions OF which they may pursue a iraudu-
lent debtor. or one who has made prefer
ences, by summary process, strip him OF
all that he has, break up his preferences,
and divide what he has got equitably and
equally amongst all his creditors.
Now, the classes which have mentioned
are the only ones that want bankrupt act,
and such an act as have described is the
only ono that they want. But no other
part OF the population wants this act, and
indeed the great bulk OF it is directly OPP
posed to such an enactment. Each man
feels that he may get into the grip OF such
a law, and he instinctiyelY shrinks from it.
| think such law necessary. and the only
kind OF bankrupt act that should be tOle-
rated.
Now, when the commercial elements
wish to present their claims for an act
they are at once met by the opposition OF
all the other classes. who insist upon mOdi-
fying the harsh features Of the commercial
mans demands (Which are really the only
valuable features OF it), and she result is an
emaSculated proposition, which fails 10
subserye the merchants aims, and en-
courages the others in Yillainy and fraud.
The bill which the Bankrupt Convention
at Washington agreed on IL the Senate
committees bill, and is one OF these COM
promised measures. The commercial men
accepted it because they could get moth
Ing better, but 1t will do them no
good. II Will amount to hiding
place for fraudulent debtors only. One
feature OF the bin, which was put on it in
the Senate committee by the anti-cOmmer-
cIal interests, will suffice TO show the utter
collision of interests which 1t seeks TO
cover. AS It came from the committee IL
contained provision that when creditor
took proceedings against his debtor TO have
him adiudicated a bankrupt, he should
first file bond, with good security, TO an
sWcr all damages TO the debtor that might
ensue II he failed to establish that the
debtor had committed an act OF bankrupt
cy, and that the same Jury that tried the
question, tohether the debtor had committed
an act Of bankruptcy or not should assess
these damages.
pointed out to the Convention that that
would entirely destroy the act as practi-
cal remedy for creditors; that II jury
found that a creditor had made false
charge Of bankruptcy against his debtor
II would OF course assess very heavy dam
ages against him for that false charge, and
that no prudent LAWYER would ever advise
his client to take such risk. On my mo-
tion the Convention struck this provision
out; but the act, after all, remains full OF
.controdic,orv nronos;tions. which I would