Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1890-07-30
The Rankrunt RrI.

I The bankrupt Bill.
| The Bankrupt bill which has passed til
House of Repres entatives was in the for1
it came from the author, Hon. j. l.. Torrey,
st. Louis. 1t was submitted to all the CON
mercial and trade organizations of the cOun
try for an expression of sentiment thereon. /
| the Staunton Chamber of Commerce it was re
ferred to a committee consisting of Thos. I
Ransom, NJ. N. Bradley, Chas..E. Kemper, Jnt
W. Todd and j. G. Shields. Following is th
report of the majority of the committee whic
was prepared by Captain Ransom
STAUNToN, VA, July St b, 1880.
To the Chamber Of commerce. Staaanton:
The undersigned. as a committee. wer
charged some weeks since with the duty c
embodying in report the favorable view
en- tertained by this Chamber In regard to tn
measure now pending in both houses of Con
gress entitled "a Bill to establish uniform
system of Bankruptcy throughout the Unite'
States" as drafted by Col. Torrey, of st. Louis
and subsequently, amended.
Under such reference we would not be ex
pected to enter upon any hostile criticism o
the bill and some of US are under the disad
vantage of not hearing the discussion of thu
subject before the Chamber. But having giveI
unprejudiced consideration to the provisions
of this bill. a majority of your committee nov
beg leave to submit the following report ant
accompanying resolutions recommending thu
same. 1t is proper to say that one of tie coma
mittee dissents from the opinion of the ma
jority in approving 1t; but his objections go tt
the passage of any law OF bankruptcy, as IN
necessary and inexpedient, rather than to any
special features of the bill IN question.
While we are less vitality interested in the
subject than the wholesalers and large dealers
Of the East, we feel that 1t concerns us all
closely enough to enlist our attention and call
for action such as you are proposing.
1t goes without saying that a bankrupt law
honest in theory, or in other words framed for
the protection of the honest but unfortunate
trader against condition of hopeless and ir-
retrievable Insolvency, and likely TO be
honestly, promptly. and inexpensiyely adj
ministered, with due regard to the rights OF
the creditor, is likely to promote the commer-
cial and industrial interests of the country.
1t is not only the unworthy or the reckless
adventurer who fails, 1t is a statistical fact
that only about five per cent of those who en-
gage actively In merchandising are enabled to
retire with a competency. Some OF the fore
most business men in this country have had to
struggle through repeated disasters to final
success and no man knows when his earnings
may be swept from him by the vicissitudes OF
trade, We would not have his usefulness as a
citizen destroyed. We would encourage him
to new efforts. There are many deserving men
whom bankruptcy alone can set free from the
bondage of old debts.
Our experience Of the last bankrupt law and
its practical administration was not such as
to make us desire another of similar provis-
ions, liable like that to be perverted by dis
honest debtors and lawyers of the same stamp,
into the machinery of fraud and plumber.
An examination of the present bill satisfies
us that 1t is not designed to serve any such
purposes, that 1t is a just as well as humane
mea sure, equitable in its spirit, drawn with
due regard to the interests of business men, a
vast improvement upon the old law, in the
safeguards which IL furnishes to the creditor
class and the relief it affords the well meaning
debtor, and in the economy of time and money
in its practical operation. And in some re-
spects an Improvement upon the Lowell Bill,
which was defeated at recent session OF Con-
gress.
We believe this to be a clear and sensible
law, calculated to help the honest debtor out
of misfortune, and to discourage fraudulent
by traders and unfair advantages
on the part of local or favoured creditors, and
a measure that meets pretty fully the present
demands of commerce between the States.
We do not regard 1t as perfect law, but 1t
seems by general consent of those best quail
fed to judge, TO be a good law. 1t has the
merit OF simplicity and it can be amended and
upon, as practical test may show 1t
to be defective.
No bankrupt law could pass Congress that
dis regarded the various State exemptions
This goes no further.
We think this law too stringent, as applied
outside of the larger cities, in rendering man
liable to involuntary proceedings upon failure
for GO days after written demand to pay an
open account for goods sold, or for suspending
payment of his commercial paper for Is days.
A modification is these particulars is recon-
We think the law ought to require the pay
ment of reas enable percentage from the as
sets surrendered, In order to discharge, in
cases of voluntary bankruptcy. This would
be a pledge of good faith worth more than
legal penalties. But the absence of such pro-
visions should not condemn the bill. If in its
leading features beneficial.
On the whole we approve 1t. We like Its
practical and simple methods. 1t makes pro-
vision for the arbitration of controversies, and
for business.like compositions and comprom-
ises through the trustee, after full disclosures
by the bankrupt and subject to revision by
the courts, upon notice to Directing creditors,
and satisfactory proof that there has been no
about the business.
Fraudulent preferences are among the cry
ing evils of the day. This bill proceeds upon
the wholesome theory of sending all the ras-
calls to the penitentiary. 1t will not do to walt
for one that makes them all honest men. We
think it will have the practical effect OF dis
couraging mercantile failures as business, as
well as the game of "grab," and the race or the
scuffle between the creditors Of apprehended
insolvents.
1t aims to moderate fees and salaries, and to
appropriate assets to dividends for creditors
rather than to perquisites of officials. The
referee (or associated judge gets only ten dol
lars, and that from the U. 8. Treasury, not
from the fund, and the Clerk a like amount
from The party filing the petition. The trus-
tee or chosen representative of the creditors
receives a very moderate commission, and
that only on the dividends paid out, only one
per cent over ten thousand dollars.)
1t makes it the interest OF every official tc
WlnQ up the estate as SOUL DIS possioic'
Its general tendency will be to increase con-
fldence In, and therefore the credit enjoyed by
the retail class OF merchants; and the law thai
does this is as direct benefit to the country
trader of moderate means as If it put money
to his credit in the bank.
Its natural effect will be to extend and
strengthen commercial relations between the
States, and 1t is to be remembered that oul
internal trade and commerce is the founda
tion stone, after all, on which our prosperity
as nation must continually rest, and in tht
increasing activity and intimacy of thosi
Interstate relations. lies. at the same time
our greatest safeguard against outside inter
ference and political disturbances at home.
No wise law on this subject is so likely to b
framed If we wait for the emergency and thu
excitement Of financial crisis to perfect ant
to pass 1t. Now is the time to do it. And suci
being the character, in general, of the law pro
posed, we should not withhold our counte
nance from it because it chiefly benefits tn
larger business centres; nor for any fear tina
it may not be well administered by our Fed
eral courts in the South. We believe We cal
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