Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-07-21

90 prOUe the fraud. An unsupported ale
CATION Of fraud is OF no avail In the courts;
IL is indispensably necessary that II should
be proceed This makes II next to impossible
TO set aside any deed on tho ground OF
fraud The process is so tedious and ex-
ponsiye that unless the amount In contro-
versy il exceptionally large the major part
of IL will be consumed in costs by the time
n decision is reached. Thus lawyers fire.
uuently advise unlucky creditors to accept
anything rather than engage in litigation
Of this character. The moral effect OF al
lowing any one 10 say winch one OF the
creditors shall be paid and which shall not
il very bad. The books all say that
" equality Is equity"
The way in which the bankrupt law was
administered in the days OF Underwood,
CahoOn. e III Cfrifs O1he. ia not worldly Of
imitation. But the blackness of that time
of so-callcd reconstruction the people have
not forgotten. and the recollection OF the
uncanny atmosphere into which suffers IN
the bankrupt court were Grlvcn causes
this community 20 doubt the prOpriety OF
any such law.
The English bankruptcy procedure *
satisfactory. It's provisions are too hume
rous 10 be here mentioned in detail, but
some of them are so striking that bret
allu.i1u 10 its more salient features may
prove Of interest.
4 person can get into bankruptcy under
this law IS and AZ Vic. Cap, %, Act OF
1881 in many ways.
He commits an act Of bankruptcy II he
makes a conveyance o. his property. To
trustee for ,ne benefit Of his creditors
generally. or if ne makes "a fraudulent con-
veyancc, or If he makes fraudulent pre-
ference, or If with intent 10 defeat OF de-
lay his creditor he leaves England, or u
his goods are levied upon and sold, OF il
he gives notice Of suspension of payment
The assignee or trustee IN bankruptcy
has large powers but II Is MS duty 10 make
his first distribution within four months
after the first meeting of creditors, uiile--
me SAT- sfc- the committee Of inspection that
there ;sa sufficient reasonforpost ponng ,ne
distribution 10 aldtcrdatc, and subsequent
dividends must bc declared ai intervals ui
six months. ihe rule as between secured
and unsecured creditors D. that secured
creditor. in lieu Of resting on ms security
and compelling the assignee or trustee 90
redeem it, must realize u or put value
thereon and prove for the deficiency
if there is any. The discharge of the bank
rupt is carefully watched and fraud se-
verelv punished. The Minneapolis con
vention should recommend q law where II
would not be- IN the power Of the Court 20
grant a .scharge IN bankruptcy until after
the majority of the creditors. voting hy the
amount IN value of the debts, have applied
to the Court through a committee of their
own selection by petition for 10 IN behalf %
the bankrupt. his would leave II with
those who suffered to say whether the
bankruptcy WAS honest and unayOld4-
bic. In failures where there Is no
faint Of fraud it is right that the
unfortunate debtor should have new start
in life. and if he is worthy no hlndrancc
should be put in the way of his future sue
cess. # man is 10 receive his dlocnargo
i'm bankruptcy it should only be after nc
has made a b0nd-fde surrender of ms assets,
and no exemptions should be allowed him
except those given by the bankrupt Law
itself
A debtor can now answer creditor a.
iestingly ~ Rabclais makes Panuree praise
belng m debt. But" quoth Pant 'grueL
when Will you be out of Debt: Al
the ensuing term of the Greek cabuds.
answered Pauurge. when al the world
shall be content. and that 1t beyour fate to
become your own heir. The Lord iorh ID
that should be- ont Of debt. a. 81, indeed.
[ could not be- trusted. Vino leaves nos
some leayen overnight VIII hardly nave
paste for the next morning. inc laws
which hinder and delay the collection Of
debts are directly against the interests of
all mercantile cOmmunltics. The delay u
Virginia are unSpe&kablY annoying. The
action of the Chamber of Commerce ~
sending q representative % the Nluncapo-
lis convention was wise, and 10 is TO rc
hoped that good viii come OF lt.
5. :. J.. PATIEsoS.
Richmond, Vd., July 20, 1889.