The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-11-04

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honest but unfortunate debtors in this
plight, this inability to habilitate them
selves and enter once more upon their
work as honest and efficient citizens.
No other country does leave any of its
debtors in such position through the
failure to legislate.
And yet, because gentlemen pretend to
be fearful that any national legislation
may be used to make the condition of
debtors worse, they refuse to take a
single step toward Tightening the burden
of men known to all of US, who are thus
work of life. Our country is losing
every year through these men thus forced
to be inactive more than can possibly. be
imagined.
have heard during the past few days
lurid denunciations of national bank
| ruptcy law, alleged to be an enginesfor the
oppression of debtors; and when 1 have
heard them | have carefully listened for
an intelligent explanation of such results,
| and have not as yet heard any.
Now, instead of placing new burden
on the honest debtor, assert-and ask
| for proof to the contrary-that it will
| improve his condition. Of course it is
admitted that it will improve the condi-
tion of the hopelessly insolvent debtor
| by relieving him from the burden of
his Indebtedness on the surrender OF his
property. So much is clear gain.
Again, take the case of the debtor who
| is not able to pay his paper at maturity,
| but who yet expects in duo time to meet
all his obligations. What is hissituation
| now? His property is subject to attach
|.ment under State laws. Each of his
creditors, especially those out of the
| State, fears that other creditors, especial
| ly those in the State, will endeavor to
| get ahead and attach the creditors
property, for " first come, first served"
The chances are more than even that
| in this state of uncertainty one creditor
| will secure his debt by attachment, or
preferential conveyance, and then all the
others will follow like a pack of wolves,
trying each to get in ahead, and the un-
fortunate creditor will be made hopelessly
insolvent If national bankruptcy law
existed so that neither creditor could
get an advantage of the other, and that
in case the debtor should fail each would
come in for his share, all would allow
the debtor to 60 on, and even give him
a helping hand.
In short, under any and all circum-
stances, the national bankruptcy law
| would improve the situation of the hon.
est debtor and save thousands from bank
ruptcy who would be carried down by
State attachment laws, or by ssthe ina
| bility of State insolvent or assignment
laws to reach outside creditors. !
Thirdly Justice to the creditor, par
ticularly the creditor who resides in
| States other than that in which the debt
or lives, requires national legislation.
AS tits now, legislation in some States
| practically discriminates in favor of cred
ltors within their own borders, or at
| least allows debtor to prefer creditors
| in such way as to deprive the outside
| creditor of a just share of the insolvent's
estate. Indeed even if laws allowing the
| preferment to creditors do not exist, the
| fact of non-residence makes it probable
| that they will come in last in race of
! attachments on the estate of a failed
| debtor. Every outside creditor wants
ors in cases where debtors become insol-
vent. Whyssshould he not?
But it is in cases where there are fraud
ulent acts on the part of the debtor that
| the outside creditor suffers most. For
| in such cases the chances are that inside
| creditors are mixed UP with the fraudu-
| lent transactions of the debtors-transac-
tions which can rarely ever be reached
except by court of bankruptcy.
/ 1t is for these reasons that a national
| bankruptcy act not only protects and
sustains the honest debtor, but also at
the same time secures the just rights !,
and only the just rights, of the creditor
| to proportionate share in the property
of the insolvent debtor.
| Much has been said in the progress of
this debate in derogation of the creditors
| of this country. We might get the idea
| from the frequent reference to what has
been styled the creditor class, that there
| is distinct body of men in this country
| who are perpetual and irrevocable credit
| ors Now there is no such state of things
| in this country.
| The creditor of today is also the debtor
of today in almost every instance, and
the debtor of today is likely to be the
creditor of tomorrow, and vice versa
There is no fixed class of debtors and
creditors in a country like this. There
| is no class of men who, in the same day
i simply debtors and not creditors
We have heard great deal said about
| the so-called poor men of this country,
the workingmen who are held up as
debtors, and to whom this bill is said to
be inimical. Why, Mr.. Chairman, are
you not aware that the largest body of
creditors in this country are the work
ingmen? They have today over $l,70O.-
200. 900 deposited in the savings banks of
this country, placed there to their credit.
and loaned to the debtors of this country
and it is through the loans out of the
savings of these workingmen, whom you
are pretending to.care for as debtors who
| want to avoid payment of their debts,
that the business of this country is being
largely carried on today. My experience
| as business man is that the largest
debtors are men Of means, the men who
are engaged in large business opera
lions, and who are obliged to constantly
hire money to do their business.
I have had some opportunity to observe
to whom loans were being extended by
banking institutions, and I want to say
to you, Mr.. Chairman and gentlemen,
what many of you know, that the debt.
ors of this country. are not to a great ex-
tent the poor men but they are the men
of means.
I repeat there is no distinct class of
debtors in this country. All are at the
| same time or at different times both
creditors and debtors. What is for the
interest of the creditor is for the interest
of the debtor also, and justice to each
secures the highest welfare of each. j
am tired of sitting in this House and
hearing from day to day gentlemen
claim to be the special friends of the
poor man and of the workingman, and,
under the guise of championing their in.
terest, declaiming against legislation
that is for their interest as much as it is
for the interest of any other people in
this country.
Let us have done with this class talk.