Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-18
OUR MAIL POUCH.
A Bankruptcy Law Needed.

BANKRUPTCY Law Needed
To the Editor of The Dispatch:
The Associated Grocers'' of st. Louis, by
their action in calling conference Of mer-
chants and business men In relation to the
passage of national bankruptcy act, have
revived matter that should be of the utmost
interest to all our merchants and business men.
1t Isl very vital question, and one in which
they should all manifest some interest and
assist in making this conference success, and
also urge on their representatives in Congress
the passage of national bankruptcy law, max
ing uniform throughout the United States the
collection Of claims. It seems hardly neces-
sary to argue whether or not there should be
such law. 1t is impossible to find anyone op-
posed to the movement who really understands
the necessi ties of our country and the disad-
vantages that business men labor under.
am not merchant, but in the practice of
my profession L certainly find enough reasons
to favor such law, and to hope that it might
pass Congress, and that right speedily. Any
attorney who does. in any degree, collection
business, feels the disadvantage he labors un-
der in attempting to collect claims put in his
hands. A client in New York sends claim here
for collection, the attorney demands payment
and finally brings suit. The very earliest he
can take judgment is in six days on claims un-
der $500. Long before he has obtained judg-
ment the creditor has given judgment note
to his uncle, brother or some other relative; it
is entered up. execution is issued and the
Sheriff has possession of the stock and is ready
to auction it off. In nine cases out of ten the
plaintiff buys in the stock for q mere trife,
and the next thing one sees is slight change
in the name over the door, the three letters,
''Agt.," are added, but they make wonderful
difference to the creditor who is not ''pre-
ferred." but is out in the cold.
Under the old bankruptcy law of 1867 the
creditors had four months in which to
attach such. preferences . If they were
fraudulent the preferred creditor got
nothing, and the bankrupt could not obtain
discharge in bankruptcy. If the claims were
just and legal they must come in pro rata with
all the other creditors. An assignee was then
elected by the creditors at a general meeting
called for that purpose, and he administered
on the estate for the best interest of all the
creditors While it was for the best interest of
the creditors that such law was in
existence, it was also for the best in
terest of the bankrupt, provided he was
honestly bankrupt and unable to pay his debts;
by giving up all he had to his creditors he
could be relieved from the great weight of
debt on him, and be discharged from his liabil-
1ty and start out anew to make fortune. There
was no reason to prevent his paying his debts
after he became rich and able to do so. Such
a thing was done once in a while under the old
law, indeed know of two instances out of
about eleven hundred bankrupts where it was
done. Hon. John Lowell, ex-Circuit Judge of
the United States, is the author of bill that is
in some shape or other now before Congress,
although it has not been heard Of for long
time. He has always been regarded as very
high authority IN bankruptcy matters, and his
bill is very good one. and is SO regarded uni
versally. The most radical changes he makes
is IN making the register salaried officer, so
that creditors in proving their claims are not
obliged to pay him fee, and in the appoint.
ment of an entirely new officer, the supervisor,
the Is a9 hi has e
which he is appointed, and makes his
reports to the Judge of that cir
cult. This is very important
office and on the way it is conducted depends,
worst features of the old law are remedied by
the new or not. He must visit, four times each
year. the office of every clerk of the United
States District Court and Register in his cir
cult and report on the condition in which he
nnds l, their business He must stir up delin-
quent assignees and urge progress in settling
up estates and keep general supervision OF
all that is going on in bankruptcy matters in |
his circuit.
One OF the mistakes in his bill is that "any
person being trader" who 'has suspended
and not resumed payment of his commercial
paper or open accounts, made, passed or con-
tracted in the course of his business, for |
period Of 30 days after the same were payable, !
shall be deemed to have COM
nitted an act of bankruptcy and may be ad- |
judged bankrupt, etc.f There are very few
traders in active business who have not at |
some period or other, by neglect or other
reason, suspended payment for 30 days of an |
open account, and we would not want to have |
them all declared bankrupts
That and other errors in the bill can easily |
be changed, before the bill becomes law, by |
Congress in their debates on the bill. Whether |
the Lowell bill be found satisfactory and |
passed by Congress or not the fact remains that |
the country does need the passage of some law |
on the subject, so that our Eastern creditor, |
when he sells goods to a Western man, can |
know under what law he must proceed to make |
himself secure and realize on his claim and not |
be compelled to lay in stock of Law Di-
gests" as his first investment
ALBERT YORK SMITH.
PITTsBURG, February 16.