Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1891-11-05
THE BANKRUPTCY BILL.
Gratifying Approval Of the Torrey
Measure.
Warm Commentator From Denver-Ex-
haustiye Report of a Committee of the
Chamber of Commerce and Board of
Trade Concerning Its Provisions.

At meeting of the executive COM
mittee of the national bankruptcy Or
ganization held in st. Louis. gratifying
reports were received of large num-
Der of additional Endorsements to the
Torrey bankruptcy. bill by prominent
commercial bodies in different parts of
the country.
The chairman, Mr.. VIM. E. Schweppe
the president of the Associated Whole
sale Grocers, in reply to an inquiry as
to the progress of the movement said:
1.-The success of the bill seems to be as
sured, and yet its friends must remem-
Der that national legislation can not be
secured except by unceasing toll and at
great expense"
In speaking of the attitude of COM
mercial bodies of the country, he said:
1.-The number of commercial bodies in
the country which have Endorsed the
bill are now above 500. We have lust
received an exhaustive report of spe-
clal committee of the chamber of com
merce and board of trade of Denver,
which was received and unanimously
adopted by that body. 1t is in some re-
spects the most able deliverance upon
the subject that we have yet received.
The report is as follows:
To the Chamber of Commerce and the Board of
Trade: The undersigned special committee
heretofore charged with the consideration
of the subject Of national bankruptcy legis-
4ation, and as to whether such legislation
would promote the best interests of our
citizens and of those of the state and of the
west generally, beg to respectfully say that
they have diligently investigated the sub
1ect. and. without division, agreed upon this
report:
The best interests of our citizens, of
course. embrace the best interests of those
of the state and of the west generally, as we
are, in a commercial sense. one people.
We of the committee are all of the opinion
that bankruptcy Legislation will prove bene-
hciai to our citizens for reasons as follows:
Practically speaking, the whole country
has been developed on credit. 4 part of
the business transactions of the country are
made ON Il cash basis, but the great bulk OF
them time. The statistics show W.
believe, that ys per cent. of the business OF
the whole country is done on credit, and
that the other per centum is done on !,
cash basis. 1t is surmiScd that if You were
80 take the volume of transactions had in
conducting commerce and developing the
for SIX mont LIS and over, four months, three
months and sixty days and less, and on
cash, and strike an average, it would be
FOUND that the average OF all of them are on
credit.
In view of the foregoing estimate the in
terest of the people who grant and the PEG
pie who receive credit in the legislation in
question will be readily understood and APP
Dreciated.
The demand for a law which shall make
credit secure for the giver and receiver is
not local lt comes from every part of the
rule and business for cash the exception
and it is desirable and NilI be of advantage
to the CT zens of every state to have credit
strengthened.
Those who furnish the credit on which the
who receive it know full well that in case of
financial difficulties to a debtor he needs the
advice, the assistance and cooperation of
3liS creditors upOn the basis of their mutual
auterests, irrespective of whether the estate
rs to be wound up or is to lie tided over the
difficulty in which it is involved W 18th Il view
of the debtor being continued in business
Concert of action is impossible under the
laws as they now stand; it could be enforced
under such a law; if an administration was
determined upon, it would be upon the basis
OF exact justice to the creditors, and if the
debtof was honest he would be discharged
If the debtor wished a compromise and the
creditors were willing to grant it, the terms
mutual profit.
It is, therefore. apparent that the passage
of a bankruptcy law by congress will do
away with suspicious and beget confidence
between debtors and creditors and rebound
to the financial advantage of both of them.
The merchant ordinarily exercises great
care with reference to the preservation of the
stock on hand he insures it against loss by
fire; protects it from theft by barred doors
and truSty watchmen, and secures it from
depreciation in value by care at the hands
d! careful employees; and vet a far greater
amount of properly consists of open ac-
counts against. and commercial paper of, |
persons to whom he has given credit, and |
of this class of property he is without insur-
1sHce, barred doors, watchmen or the super
vision of employees: bankruptcy law |
seems especially designed to furnish the e.
curity needed above, by giving such n |
merchant better rights against those whom |
he has trusted. and in turn, giving similar |
rights to those who have trusted him and |
thereby lettering their and strengthening |
his position.
1t has been suggested that the passage of |
a bankrupt law would so give stability to |
credits that the west would be overrun with |
the emiSsareS of eastern jobbers, and that |
what might be termed the vested rights of |
jobbcrs at western commercial centers would !
he materially affected such, however womb |
not prOye the case We find that such law
would of necessity be absolutely uniform
aud it could not prove benefit to the east |
eIn jobber without at the same time proving
Il CORE sponding advantage to his western |
competitor.
Under existing laws many hardships are |
perpctrated on the western jObber by reason |
of the fact that a customer purchases from |
Others who threaten him, when in default,
with compulsory processes, and as a result, |
the western jobber must help his customer, |
enter into competition with the stranger for |
Il voluntary preference, fight for a COM
pulsory lien, and in the end ruin his |
TONER financially. The western jobber does |
not wish to be compelled to do more than /
sell his goods on reasonable time: he does |
not wish to either force or have his customer |
forced ont of business because the getting
of customers costs money. Legislation as |
contemplated by the federal constitution |
will beget a csnserva tive tone between debt
ors and creditors and the result will be a |
great decrease in the number of failures.
1t will, therefore, be to the advantage of |
all parties concerned to have such law |
passe'!. If such Il law were in force threats |
of attachments would prove unavailng and |
the western jobber, being on the ground and |
knowing the debtor. would have all of the |
advantages which his position gives him
without any of the disadvantages of posi-
bility of voluntary compulsory prefer
ences being given to the eastern stranger
The question of territory which does or
docs not belong to n given jObDing center is
determined solely by the question of the cost
of the trans portatiOn of goods. With refer
euce to those articles upon which the trans
portation is triv ial, the whole country is q
such articles as are transported at consider
able cost. the country is naturally divided
between the several jobbing centers with
reference to such cost
It. therefore, follows that the quest ion of |
which territory is tributary to certain Job |
bling centers is determined solely by the cost
of Transportation. anu not IN any sense by
the possibility of committing moral wrongs |
aInder the law.
Right thinking creditors and debtors are
alike interested, irrespective of the places |
of their residence, their views upon DO |
iitical or religious subjects, in having the |
giving and receiving of preferences stopped.
Ordinarily the takers of preferences pounce
down upOn their unfortunate debtors and |
Through threats and promises of prospec-
tive fdvors. or by compulsory processes, Sc |
cure. their assets without regard to their |
sofvency OF the rights OF other creditors. |
The passage and enforcement of bank |
rupt law will, we earnestly believe end the
sway of the class in question and substitute |
for their pr lctices those of fair dealing be
1ween honest men under the rules of equity. |
Even If the home creditors always re- |
ceived preference, anu did not frequently
IN we to spend more than it amounted to to |
q feud il. the practice on the whole would
count the fraudulent preferences, the ones |
TO relatives and those which are given to the