Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-07-27

ever accomplished was the release of sofne
hopest debtors from o bondage that para
lived their usefulness. There are every
year q few failures in business. where the
debtors are unable TO secure acompositloh
with their creditors, and are thus prevent
&C; from renewing their efforts to establish
themselves on n solvent footing. In some
cases there il q culprit in the suspended firm
whom the creditors will not pardon. and OIL
the other partners, themselves innocent OF
wrong, are kept under the harrow tor his
sake. But in most instances where the
honest bankrupt fails 10 make a sGtisfac-
tory settlement the obstacle is one or more
bard-hearted creditors who Will not sign
release without special considerauch
that would defeat the project. Since
the repeal Of the last act dozen
years ago efforts have been made
in every succeeding Congress TO secure
fresh enactment. but without avail.
If IT is asked why the former acts were
repealed and why no project submitted
since has met the approval OF those mosV
interested in the subject the answer II
easily given. One objection, patent enough
TO all who saw the operation OK the ma
chinery, was that moro rogues than honest
debtors were benefited by it. But the
main reason for the almost universal
condemnation cf oil the laws here
tofore enacted for this purpose. IS
to be found i'm the fact Of their failure
to distribute the available assets OF tho re-
leased debtor among those entitled To u.
The machinery WAS altogether too comph-
Gated and costly for the service. Inc
debtor, without much regard for his cha
racter. generally managed 10 obtain ms
discharge. 1t is true that there was otten
much unnecessary delay but IN time that
desired RESULT was duly reached. But what
4 L. IA n
part swallowed up in the cost Of the pro-
ceedings. and the perquisites. legal and IL
legal, which were retained by the opera-
tors.
The only legitimate operation Of bank
rupt law is TO secure q inlr DIVISION OF lne
property OF the insolvent among all hls
creditors without undue preferences, ana
to release him for further sublecton 70 Ie-
Gal process on account of his obligations.
The incidental benefit OF general law mas
far outweighed all the good that has ever
come from its direct operation. The TACT
that tho debtor was forbidden 10 prefer
one creditor 20 another, and IN most cases
could be released from legal thral-
dom on tho surrender OF hls eS-
| tate, led by majority OF dealers VINO
become insolyent to offer acceptable terms
| 10 those whom they owed, and the latter
to settle their claims in this way without
the Intervention of legal process: Where
| this was found to be impossible from any
| cauee. and the case Of the bankrupt was
| brought into court, the only party that OBJ
| famed auv reasonable satisfaction was the
discharged bankrupt. After suffering
| from the proverbial - laws delay" he could
and did obtain his release. But the estate
| IN the process to which II was subjected
melted away until the dividend to the credi-
tors was little more than nominal per,
centage, hardly worth the trouble That hau
beed experienced in proving the claim.
| We had no little personal experience on
| the creditor side. and thus had SPECIAL op-
| portunities to Judge Of the AVERAGE result
| of proceedings IN bankruptcy III tins CITY.
| Almost every man prominent IN business
! during some portion OF the year owes u
| small amount 10 this paper, ana thus we
| had a trihing interest in nearly every N
solvent estate. When the debtor conpro-
missed and settled with his creditors on
terms agreed upon between them we re-
ceived from Is 10 % per cent. OF ouI
! claim, according 20 the amount OF ",
| estimated assets. and that was the end OF
| il. But when the estate went into court the
| ultimate issue showed no perceptlble rela-
| ton TO the original estimate, and IN nun
| dreds Of eases not cent was ever divided
| The referees. the attorneys. tho counsel
Tors. the printers, the advertisers, and INC
| whole array of legal tunctlonarles hao
their fat pickings out OF 1t, and they lay
| nj the feast month after month ana yea
after year, until the assets were sucked Il,
dry as the skin of q last years grape, anC
the creditors. when the coming or the enc
| could no longer DO resisted. were regaleo
| with long array of figures and peg
| carly account OF empty boxes.
All the projects for lew law since th'
last was repealed have contained the SAME
old obnoxious provisions. Inc one now
under consideration in the House OF Repre-
| sentatives. and which VIII be voted upoi
today or some other day OF the curren
| week. is only the turning over OF new
leaf with the same reading on the othel
side. IL is not in the interest 81 tho hones
debtor or creditor, but OF the lawyers an'
! iobbers who are hungry for more pap
the old composition. 1T IS not proposed o.
pushed by the people who are suppose,
10 have the greatest interest IN sucl
LEGISLATION. While the bill was under dis
| cuseion on Tuesday one member declared
that never in all his experience IN Con
| grees had he known measure 50 mdus
friouslv and indoiatigably lobDled as TINS,
and me could not understand the urgen
| anxiety for its passage. We think the key
10 his puzzle NAV be found in the question
asked during the debate by Mr.. heil'
whether under the provisions OF the Dll
LAWYERS onlycOuld be appointed referees
and the reluctant answer IN the ainrma
tive given by Mr.. Buchanan. Inc Todd,
are after the fat for which they nave peer
hungering during the whole OF the iis
dozen years, and the bill may ue ehll'le'
AN act to release lnsolyent doctors an
to divide the chief portion OF tneir asset
! among the referees and theI allies.