The Portland daily press., 1890-04-23
TO AID HONESTY AND PUNISH WRONG.
The National Bankruptcy Bill Now
Before tho House.
Its Friends Claim That 1t Will Help
the Honest Debtor
AS Well AS the Creditors of Men who
Are Dishonest.
Especial to the Press.1

Especial to the Press.l
WASHINGTON, April 22.-The House will
soon take up one of the most important
measures before the present Congress, the
bankruptcy bill At the present time there
is no general bankruptcy law, each state
having regulations of its own. This condi-
tion of affairs is not at all satisfactory to the
business world, and their has been wide
spread agitation among business men to
have a change. The bill now on the House
calendar was reported from the judiciary
committee by Judge Ezra B. Taylor of Ohio,
and it is defined as ga bill to establish uni-
form system of bankruptcy throughout the
United States" The provisions of the bill
are very elaborate and minute, and the meas
ure occupies about 60 printed pages. 1t is
the Torrey bill amended. Stated briefly the
most important provisions of the bill are the
following:
District courts of the United States are
designated as the courts of original jurisdic-
tion in bankruptcy. Proceedings in bank
ruptcy are assimilated to other proceedings
as now provided by law.
The exemption laws of the several states
are not interfered with, but are simply en-
forced as part of the bill, as of the date
when the petition is filed in the individual
case.
Provision is made for the appointment of
an assistant judge. called a referee. The ap-
pointment will be made by the United States
circuit courts in the states, and by the su-
preme courts in the territories and in the
District of Columbia. The number of these
officers is so limited that there shall be one
in each judicial district, but shall not be an
additional number unless there shall be
pending before each of such referees in each
district at least fifty cases. This provision
is made TO prevent the appointment of an
excessive number of these officers. Their
districts will be assigned to them, and may
be changed from time to time by the circuit
courts. Since this officer is appointed by the
government and performs only judicial func-
tions, it is provided that he shall be paid by
the government in the same manner and
from the same source that other judges are
paid.
One or three trustees, as the creditors may
elect, will be appointed to represent the
creditors of each estate In the handling and
disposing of the property.
The provisions of the bill are intended to
be adequate, to require every bankrupt to
make complete disclosure of his affairs and
full surrender of his assets for the benefit
of those interested.
Controversies about the assets of an estate
may be settled by agreement, compromise,
arbitration or litigation.
There are no barriers to prevent the most
advantageous method of reducing the estate
to cash and distributing the same in divi-
dends to the creditors.
The trustee cannot act of his own volition,
but must have the approval of the court. II
there Is any doubt about the best course to
pursue there may be a meeting of creditors
or hearing in court in which all of the cred
it0rs may participate.
The provisions of the bill are such that
or settlement in bankruptcy
may be perfected in every instance in which
the debtor can make an honest showing, and
the creditors are satisfied that it is for their
best interests to accept the settlement as of
to an examination, before his offer in compo-
sition is considered, at meeting of the cred
ltors, or in open court In all matters con-
cerning his estate which the creditors wish
TO know in order to form an opinion as to
the conduct of the debtor and what the pros
poets are for realizing upon their claims.
Creditors who do not accept the proposition
will have an opportunity to be heard in open
court and to explain in detail, if they so de-
sire, their reasons for their opposition to the
Before the proposition is con-
sldered by the court the money to be paid or
the securities to be given must be turned over
to the court for distribution In the event the
is confirmed. 1t is believed that
under this clause 1t will be possible for an
honest man to make a settlement absolutely
fair and without the least taint of deceit,
chicanery, or the payment of different
amounts to different creditors.
The judiciary committee claim for their
bill that it will bring many great advantages
to the business world. They say that the
their debts will be taken charge of by, and
be distributed ratably among their creditors.
That stability will be given to financial
transactions by engendering confidence, and
by doing away with the uncertainties which
beget suspicious and breed trouble:
That an equitable and safe guide will be
furnished for the gettlement of transactions
whichare now left unsettled by the varying
rules of law in force in the several states.
That dishonest men will be prevented
from outdoing their honest competitors by
chicanery and fraud, and in turn swindling
their creditors.
That large concerns will be prevented
from securing assignments for their benefit
by threats against their small debtors, and
thereby succeed III collecting dollar for
dollar of their Indebtedness while other
creditors of the same class are prevented
from collecting any part of their debts
That the unfair appropriation of assets,
through the instrumentality of judgments
by confession, and attachments by conniv-
ance, will be prevented.
That the assets of insOlvents will be pro-
tected from the depredations of persons hold
ing fraudulent claims.
That creditors will be furnished with
ample opportunities to investigate the trans
actions Of their debtors. and to secure such
part of the assets as they may be entitled to
equitably.
That bankrupts, and other persons having
a knowledge of their offrirs, may be examin-
ed under oath as to the whereabouts of assets
and all matters pertaining to the administra-
tion of their estates.
That the prompt compromise or arbitra:
tion of controversies at small expense will
be promoted as a substitute for vexatious
and prolonged litigation.
That conservative tone will be given to
business transactions, and there will be pre-
vented the ,unseemly struggle between credi-
tors over the assets OF their common debtor,
which should be distributed ratably for the
advantage, in the long run, of all parties in
interest.
That bankruptcy officers who embezzle,
fraudulently appropriate, expend or transfer
assets Of estates in their charge will be pun
ished by fine and Imprisonment.
That the purchase of goods by parties who
vented.
Inat ueDtorS Will be punished who obtain
on credit goods from one person in order to
be enabled to pay their debts due to an
That men who are in business, and who
nave obtained goods on credit which have
not oeen paid for, will be punished If they
pledge, pawn or dispose of such goods other
wise than in the ordinary course of bust.
ness.
mat secreting, ,concealing, removing, mutt
iatlng OF Ialsifying books, deeds, writings, or
documents relating to property, will become
crime, and will be punished by imprison-
ment.
That insolvents will be punished who at
tempt TO account for missing property by fic-
titious losses or expenses.
That bankrupts will be imprisoned who
conceal from their trustees any property he
longing to their estates.
That the United States district attorney
will. upon order of court made pursuant t3
petition of parties in interest. examine
bankrupts at the first meeting of their credi.
tors, and If fraud be discovered, Law the facts
before the first grand jury that conyenes. and
| thereafter prosecute the person suspected Of
having committed crimes. and that the same
| officer will, under like conditions oppose the
| discharge of bankrupts
That by having such law p. rmanently up
| on the statute books of tie government
! commercial crises will be less likely to occnr
and if they do,it will be of iucalculable aid jr
| restoring commerce to its natural state.
The country has already tried one general
| bankruptcy law, but 1t was repealed and
| business went back to the various laws n
the states. 1t Is believed that the proposed
| law will constitute marked contrast to the
l oil 1at nd ~ hot mn H.