Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-08-24
UNWISE AND HURTFUL.
The Proposed Bankruptcy Bill VIII
Make Weak and Honest
Debtors Subject to Oppression from the Rich
and Strong-A Careful Criticism Of
Some Of Its Provisions,

July 25 the Chicago Tribune published
synopsis of the Torrey bankruptcy bill.
AS shown by this synopsis, this is one
Of the most pernioious measures ever IN
troduced into legislative body. It is a
measure for the rich and strong and, if
1t becomes law, will often be an i'm
plement of mischief in the hands OF
selfish and malicious people.
Any of the many accidents TO which
business men are subject would be suffi-
cient for the overthrow of men of aver
age capital in almost any business.
Failure of crops which would prevent the
farmers from paying promptly their bills
TO the orediting country merchants who
usually buy on credit, would be suff-
cient to ruin the country merchant who
might be ultimately solvent, aud an
honest and very useful man in his COM
munity. He would be powerless in the
hands OF oppressive and exacting
creditors. With the many slight causes
which this bill contains for forcing man
Into bankruptcy, i'll will or maliciousness
would ever find in the provisions of this
bill The means OF moral outrage and op-
preston.
Under the provisions OF this bill busi-
ness enterprises would be discouraged
and much restricted.
This bill is a step backwards towards
the harsh and oppressive measures of
medieval times. There Is no jail for
the honest debtor who may be unfortu-
nate, but there is business and financial
ruin. No creditor is ever compelled to
give a credit. If he does so, it is his
voluntary act. The character and re-
sponsibility of the applicant for credit
are examined and credit given or refused
according to the discretion of the person
from whom credit is asked.
Most applicants for credit in business
are honest men. There is, it is true,
occasionally man who seeks credit with
fraudulent intent. Where no fraud is
involved and that means the case of at
least forty out of every fifty BUSH
ness men who are debtors1 there should
be no coercive bankruptcy. Certainly
none for any petty cause. With the
power which this bill seeks to give, gen.
erous creditors would always be at a
disadvantage with oppressive ones. The
latter by threatening ruinous bank
ruptcy proceedings could easily obtain a
secret preference in payment over the
humane and liberal creditor
Another important onsideration is that
experience under former bankruptcy
laws has shown, as appears by carefully
prepared statistics, that the estates of
persons passing through the bankruptcy
courts have paid the creditors of those
estates but 2 per cent. of the debtors
obligations. The costs of the proceed
ings and waste of the estates OF bank
rupts in the hands of the officers of the
courts take ali or nearly all. Every man
of business can handle his effects better
than stranger, and every honest debtor
will do his best. All former experience
has shown that in this case of honest |
debtors, creditors obtain more from |
them by voluntary payments, or by the |
ordinary processes of the law, than |
through the medium of bankruptcy |
courts. The intervention of bankruptcy |
courts Is very expensive and very de- |
structive. The creditor classes have no |
intelligent interest in the passage of this |
bill, except where frauds are intended. |
In the case of debtors who are honest |
men, the only persons to be benefited by |
this bill, If IL shall become a law, are
the officers OF the bankruptcy courts, |
whose direct interest would be to pro- |
mote the prosecution of ali possible cases
in the bankruptcy courts.
God save all honest debtors and honest
creditors from the passage Of this most
unwise bankruptcy bill.
Let US now examine the causes for
which bankruptcy may be enforced upon
q debtor.
''Petltions in bankruptcy may be tled
by three or more creditors who have
probable claims, which amount in the
aggregate, in excess of securities, to $500
or over, or if the creditors be less than
twelve in number. then by one or more
whose claim or claims equal such
amount. Cruel and horrible provision.
A man NAV be forced into the bank
ruptcy courts without its being certain
that he owes q debt at all. a creditor or
creditors may assert a claim or claims
end that would constitute q probability.
And though an alleged debtor might
prove be was no debtor, he could be put
in the bankruptcy courts, his property
could be taken out of his hands and his
business be suspended, aud he become a
ruined man. IL not this damnable?
Another act of bankruptcy IL 'sfailure
for thirty days to secure the release Of
property levied upon.
This failure may be owing TO the iudui-
gence OF tine leFying creditor. Yet any
other creditor could use such fact to force
a bankruptcy proceeding. Perhaps an
officer of the court could do so.
Eeglecting for sixty days after witt