Omaha daily bee., 1888-02-17
A NATIONAL BANKRUPT Law
Tho Needs Of Commerce Demand
it's Enactment.
THE PRESENT COMMERCIAL cooE
BY Reason OF Conflicting Laws OF DIFF
ferent States IL Works an lnjus-
tice 90 the Creditor and an
Injury to the Country.
Written for the Bee bu Leu Frank.

financial standing Of a merchant
unless we accept his own
statement and representations IN
relation to his own circumstances. 1t
often happens that the statement re.
lied upon is false and that his repre-
sentations were fraudulent, but he has
our goods and we have them not, nor
have we the price agreed by him to be
paid; he makes an assignment, or other
wise conveys them shortly afterwards,
and we get them not, because one, or
three, or eight of his many creditors,
who happened to be advised of the con-
veyance, were on the spot and sued out
writs Of attachment before we could get
there, and, consequently, in the scram-
BILE, we were left behind. Perhaps in
the next race we will beat the other fell
lows by nose.'
The failures also, Of which we often
hear and more often are interested in,
cause great surprise, amounting almost
to consternation; merchants who were
counted as men Of integrity and in high
financial standing, after buying our
goods, make assignments in which pref
erences are given to number Of So
called confidential creditors at the ex-
pense of other creditors. In this case
again, "we are left with the bag to
hold"
1t may easily be seen that in the in
tercOurse between merchants OF the diff
ferent states in business way, many
circumstances are required to be taken
...Ao 4 L. L.
certained what is the true rule by which
the Interpretation, obligation, and val
idity OF contracts are to be governed.
There now exists acOndition of things
which, for confusion of the law, has no
parallel in the history of any nation.
What then is to be done under the
existing condition of things which, for
confusion OF the law, has no parallel in
the history of the nation? In the differ
ent states and territories OF the union
| what law is to regulate the contract, or
to determine the rights, or it's cOnse-
quences? What law is to interpret its
terms, ascertain the character and ex-
tent Of its stipulations?
Doctrines relating to insolvents, and
especially assignments for creditors of
| insolvents have been conceived by the
| judiciary-federal and state-with such
diversity of opinion, that the confiding
| creditor can not know when the attach
| ing creditor will consume all the assets
of the insolvent debtor, though his
| assignment was honestly made without
intent to defraud any one.
| In some of the states an assignment is
| sustained, Notwithstanding the fraud of
the assignor; if the assignee is not
proved to be party to the fraud. In
| other states the conjoint fraud of assign
/ &c, H<,so <<,
| aside an assignment unless the credit
ors to be benefited thereby were par
ties to the fraud.
| In many of the states the assignee can
| pursue assets secreted or fraudulently
| conveyed by the assignor, while in other
states he cannot do this. In some states
an assignOr may exact releases as a
condition to accepting under the as
| signment.
| In some states an assignee must sell
the assets at public auction, while in
other states he must otherwise dispose
| of them. In most Of the states the in
solvent debtor may prefer some OF his
creditors to the exclusion Of others. In
many of the states, such old doctrines
| presuming good faith are applied, that
| it is often impossible to set aside frau
dulent conveyance, no matter what evil
dence there be to prove the fraud. The
orders OF the chancery court must be
invoked in other states for the
purpose of setting aside a fraudulent
| conveyance. In some OF the states a
complicated method of proving accounts
is in force, while elsewhere the method
remains vague and uncertain; the
statutes of limitations, the homestead
and exemption laws, the laws regarding
separate property and rights OF married
/ IN hn 6t&ov0nt <oto
Frequently, in the application of gen.
eral law, conflict between state and
federal, and between different state
tribunals will be found to exist, respect
ing the effect OF certain stipulations.
Persons capable OF contracting in one
state are incapable by the laws of an
other.
Considerations good in one state are
insufficient or invalid in another.
The public policy of one state permits
or favors certain agreements which are
prohibited in another.
The forms prescribed by the laws oi
one state, to insure validity OF contracts,
are unknown in another.
Creditors and debtors should not be
left to this interminable confusion-tC
the difficulties and uncertainties grow.
ing out Of the varying doctrine.
Technical law will not answer. These
laws are made by men who, in their ig'
norance Of business matters, have made
them improbable, therefore they are
unavailable; they are unwise, therefore
they are unj just; they are deplorable and
therefore impossible. There is no con-
fidence in the situation. In the light o
vast development in mercantile enter
prise; when we recollect that the trans
actions Of merchants, manufacturers ani
financiers OF our large cities, extend
over the whole country, without regard
to state limits; that no Discrimination
against citizens OF other states is allowed
j in any state here, we must realize the
necessity and policy Of having uniform
codes, uniform doctrines.
II the bankrupt act OF 1867 was defect
i've, it could have been cured. Defects
are not limited to bankrupt law. They
are much greater in criminal and Other
laws. To add to the difficulties OF the
situation, each insolvent, except per
haps in a very few states, in making ar
assignment, generally exacts release
he may, with impunity, perpetrate
frauds incidental to, or in anticipation
Of, an assignment; he may hope for i'm
munity in many cases, by means of will
ing friends, a wife's separate property