New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-17
THE TORREY BANKRUPTBlL
A MEASURE DESIGNED TO PROMOTE COM
MERCIAL CREDIT. >Nt
WILL RE YIGOR.
vr. rrrrs OF BILL WHICH WILL RE VlSoR'
ouslr URGED UPON ooNGREss~oRIMiSAh
AND JUDICIAL PROVISIONS.
,nr TELEGRAPH TO THE TBIBuSE-l

,nr TELEGRAPH THE TBIBuSEl
Washington. Dec 16.-The Bankrup. Jaw '.,,
IN, rorrey bill which formulated 10y 'he NaOV"
So,veption of Representatives Of Commercih nou''9'
will be introduced in the House oy western
ho Is TO be a member Of the Judiciary Comm''ee' "a
oon as the Speaker announces the appointment oi
,be committee The passage OF the BILL VIII DC
vigorously urged by an organizatlon' composer "
representative business men from all over 'he country
The officers and committee men alone numoer 100
The officers are all Western men. Ihe presiucn' :,
James l.. Torrey. the author OF the BILL lawyer OF
81 Ion,s. The secretary is James I. wyman, presi-
dcnt of the Board OF Trade of Minneapolis Inc
treasurer is Peter Nicholson, president OF the Amer
can Exchange Bank, and a wholesale grocer Vi o.
Louis +,
According 10 the provisions Of the bill petition IN
bankruptcy may be filed by or against deo'or WIN
owes $500 or over. The filing OF such peIloh U!
debtor constitutes act of bankruptcy, ana 'ne
adjudication will follow as a matter OF course III
the petition is filed by creditors they must DC 'hrec
IN number whose aggregate claims equal or eAoe'"
$500 II the whole number of creditors are t"eNo
or more, or il they less than that NUMBER ONO
creditor whose claim equals or exceeds that amount
may file petition. Process is returnabe IN hl'cei'
a.ys 70 defence Is made the issues involved must
be tried before the Judge, with or without 'he h'e
venton of jury. If the matter is not coh'es'eu anu
the Judge is absent the case VIII DC reierreu W ~
referee for disposition. The bankrupt may oc aii0'
or imprisoned II it appears to the cour, .ia' n0 -
about 10 leave the district. The property OF person
AGAINST whom petition has been filed may DC seiN'U
upon the giving of bond by the Creditors
United States Courts will have jurisdiction OF Ohe
adjudication of person TO be bankrupt ana OF tIe
question Of the discharge. Controversies eohoernhs
the property of the estate may be husated Ill uic
state courts Referees will be appointed In the def
ent Congressional Districts OF the states. lheS VIII
hold court in that part Of their district where the
NJ
served They will be paid salary in the same
manner that the district judges are paid ana Will not
be compensated out Of the estate. They VIII DC ap
polnted and their districts will be defined by the
United States Circuit Court at session al WHICH
there is present and presiding Justice OF inc supreme
Court or Judge of the Circuit Court ana the Disuic'
Judge.
The commemorative of the creditors will be trustee
There may be one or three for each estate. the
compensation will be per cent on the hist So'ooo
paid out dividends, per cent on the neAV sum Vi
like amount, and per cent on all sums over '''a'
amount actually paid out in dividends TO the creditors
Compositions cannot be had until after tic bankrupt
has been examined in open court, or at creators
meeting and has filed schedule of assets and list Oh
creditors A composition fraudulenty obtained may
be set aside within six months. The excessive eA-
penses incident to the administration OF te ou raw
have been superseded by provisions ior Ilc pay '0
OF nominal amounts .os
There are fourteen acts Of bankruptcy enumerated
of assets failure 10 release property from attachment
CONVEYANCE TO defraud creditors, declaration OF III
solveDcy assignment for the benefit of creditors suS
pension of payment OF commercial paper procuring an
attachment delay creditors, return OF execution W
satisfied giving preference dealing in options While
insovent. 80 -, -. ,., ooro
The criminal provisions of the bill have been care
fully drafted and likely TO prevent many wrongs
which are now openly perpetrated Deaultng on
GERS or dishonest creditors NAV be lned OF lprIsQcu
Fraudulent bankrupts may be imprisoned WIN n OF or
without hard labor A discharge must be applied for
after two and within six months and, upon certain
conditions may be applied for within the next SIX
months but cannot be after the expiration OF tweNe
months Honest unfortunates may be discharged;
but debtors guilty Of fraudulent or sharp pae1e WI
moi lie released from the obligations OF their nde1ted
ness. Discharge frauduentiy obtained may be SET
aside within two years. . 80, 10000,
IL has been suggested that the bill may DC opposeu
by of the members OF congress MIC i've s ,ha1
distance from states Court on the ground tat
IL will interfere with lcssen their commercial co,
lections but il will probably be shown that they Will
in the end realize that the bill is one designed 10 eS
tahsh and promote commercial credit ana thai, mas
mnch as it viii benefit each of their constituents
who is in business, they will probably foreSo the IAN
cicd personal loss IN their PROFESSIONAL moo'ho ai
support the measure.