, 1891-05-27
EARNEST ADVOCACY.
An Address Before the Cheyenne
Board of Trade.
The TOrrey Bankruptcy Act Ex'
planned by the Author.
A Measure to Protect Credit and
Benefit the People.

" OOun L.. 4OIltl VI d. LOUIE
author OF the Torrey bankruptcy bill, at
the invitation of the Cheyenne Board of
Trade addressed that body last evening at
the court house. A number of Board of
Trade members were present and we're
highly edited by the clear explanation
given by Mr.. Torrey of the bill in ques-
ton. In his opening remarks the speaker
reviewed the agitation which has been go
ing on since the repeal of the old bank
ruptcy law for the enactment of a new
law which would provide an economical
method for the administration of ban k
rupt estates. -Four conventions have
been held, the one at Minneapolis adopt
ing the bill prepared by the speaker.
The bill was passed by the last house
of representatives, but was not reached for
consideration by the senate and will have
to be introduced in the next congress as
an original measure.
TIE Torrey bankrupt bill designates
acts of bankruptcy in general terms to be
those which are dishonest or calculated
to initiate against the best financial in
terests of the creditors and those which
indi ate unquestloned insolvency; among
the former may be enumerated the hid
ing of the debtor to avoid the service of
process upon him. and the making away
with his property by fraudulent sales or
unlawful preferences; among the latter
may be mentioned the failure to pay COM
mercial paper a~ggregating at least $500
within thirty days after maturity, and the
failure to satisfy executions aggregating
at least $500 prior to their return nuLla
bona.
He who honestly conducts his business
and pays his outstanding obligations aD-
proximately at maturity, or secures a
renewal cannot be sdjudged a bankrupt.
Proceedings cannot be instituted unless
the debtor owes at least $500. A petition
in bankruptcy cannot be filed except by
three creditors of a common debtor whose
unsecured claims 10 the aggregate equal
at least $500. The petition in bankruptcy
may be filed like any other petition. and
after service is had upon the defendant
there will be a trial with all the safeguards
of other trials, including the submission OF
the facts to a jury, if it be desired by the
defendant.
Meetings OF creditors may be held after
ten and within thirty days after the adju-
dication in bankruptcy, a6 a time and
place most convenient to them. The Judge
or referee will preside at the meeting;
claims will be proved; the bankrupt will
examined by and on behalf OF all the
creditors of the estate as to the reasons
for his bankruptcy, the amount and
whereabouts of his assets, the various
transactions had BY him prior to the adjG-
dicauon, and in general all matters per-
tanning to the estate and its admins
%tration.
II the law in question shall be enacted
it will not be possible for creditors to take
advantage of one another by ~levying
attachments, and the result will be that
whenever a debtor becomes embarrassed
he will, as he ought, call a meeting of his
creditors for consultation and for the
taking of such action as may be in tine best
interest of all the parties.
The safeguards embodied in the bill in
question, pursuant to which the debtor
cannot impose upon his creditors and the
creditor cannot impose upon his debtor,
or other creditors, will enable debtors in
many instances to arrange with their
creditors wIthouC even an appeal to the
courts, and therein the best interests of
all of them will be served. If after the
institution OF proceedings the debtor
desires to offer a composition to his
creditors he NAV do so at any time, but
must first be examined in open court or
at a meeting of his creditors and must
file a schedule of his assets and a list Of
his creditors.
The discharge must be petitioned for
by the bankrupt. The petition must be
filed after two and within the next four
months subsequent to the adjudication.
Each of the creditors will receive notice
of the filing OF a petition and the time
when it will be heard. and have an oppor-
tunity to support or oppose it. In gen.
eral terms, if the debtor has been guilty
of acts of dishonesty in dealings with his
creditors, he will not be discharged. but
if he has been simply the subject of hon
est misfortune, he will receive a certificate
and thereafter be free from his debts not
paid by dividends from his estate. There
are hundreds Of thousands of honest poor
meu in the country who cannot pay the
amounts due to their creditors and who
will never be able to do so under any con-
ditions which are likely to occur. 1t is
submitted that a wise public policy justi-
fies their discharge aud their creditors will
not thereby be practically harmed.
The results anticipated by the bill are
to provide an equitable commercial pro-
bate law, by which all creditors of those
who fail will receive their dues according
to the rules of equity, and all honest debt