St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-01-20
BANKRUPrCy-BlLLs.
Dickinson Thinks None Will Be
Passed This Session.


DETROIT, Mich, Jan. 19.-The Free
Press of this morning published
lengthy interview with ex-Postmaster
General Don II. Dickinson. upon the
subject of the national bankruptcy
bills now pending before congress.
The opinions. coming from such an en-
lnent authority upon the subject as
Mr.. Dickinson is admitted to be. will
be OF value, not only to the legislators,
but to the public as we'll MIR. Dickju.
son said: My examination of the sew
eral bills introduced at the pres
ent session of congress has nee
essarlly been of a carsory charac-
ter. | should say With the
exception of bill S9I6, Introduced by E..
b; Taylor. that they have been some
what hastily prepared and were merely
tentatlVe-the author probably contem-
plating their implication and perfection
III committee. "One of these includes
corporations in its provisions and
would permit corporation to obtain a
alscharge like natural person.
Another inserts new and inipracti-
caole test of insolvency. Another as
sumeS that the bankruntey court would
nave the power to enjoin proceeding in
tne state courts already commenced, or
afterwards commenced, of which the
state court would have at least concur
rent jurisdiction. No such power can
exist Ill bankruptcy court. and cannot
be conferred by act of congress
This was settled by the supreme
court of the United States under
the last bankruptcy act. | notice in
theSe blilS provisions under which
preferences could not be set aside unless
the person preferred mad notice of the
intended bankruptcy The only true
test ON the question of whethera prefer
ehce should be set aside must, in the in
terest OF justice. be whether the cred
ltor receiving the preference knew at
tne tlme that the debtor was insOIvent.
house bill 1916, above referred to, is
very carefully prepared. 1t contains
many or the excellent provisions of the
massachusetts, inSolvent act: still | am
inclined to think it too elaborate and
complicated. 1t establishes machinery
OF administration which in its practical
workings will develop the principal Oh
JectlonS to the old bankruptcy iaw-
great expenses and small dividends.
III the history OF jurisprudence no more
satisfactory method of disposing of an
estate has been devised, up to the pres.
ent time, than that which is furnished
by TIE equity courts and by equity pro-
SSuutC' Htediis OF course, IN cases
which cannot be disposed of by agree
ment o. parties in interest, which should
always be permitted where possible.
Il think the principle objects of a
bankruptcy law should be as follows:
First-To relieve present debtors, of
which there are large number, from
existing indebtedness.
Second-To enable the honest insolv-
ent debtor, with live assets, to compro.
mise with his creditors without being
subjected to what may be called the
blaekmailing of small minority.
Ihird-TO punish commercial fraud
and to set aside fraudulent transfers of
property and fraudulent preferences.
All proceedings should be made to con
form to chancery procedure, and thus
the cumbersome and expensive, irritat-
ing and prolonged methods, built up by
and under the act of 1867, would be en-
tirely avoided.
Il have given my views upon the
bankruptcy law, but can say that do
not believe any law will be passed at
this session. Lawyers are against it en-
maSse, as also are a majority probably
OF the lobberS of the country outside OF
New York"