Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-10-29
The National Bankruptcy Act.
Chicago Tribune.)

The House of Representatives took up
yesterday the bankruptcy bill reported
by the Committee on the Judiciary and
probably will pass II after few days OF
debate. One or two persons who filibus-
tered against a similar bill in a previous
Congress are members now. but II Is not
believed that they will be allowed to
resort to their old tactics.
The measure under consideration Is
essentially the Torrey bill, which has been
before Congress for about four years. 1t
has been discussed and criticised so much
that the defects which 1t had originally
have been brought to light and eliminated,
and 1t is the almost universal feeling
among business men that II will be the
best settlement of the bankruptcy question
that can be expected from Congress-
Even If IL should turn out that it has
unexpected faults. they say they will not
be worth consideration as compared with
what creditors suffer now from the i'm
perfect and incoherent legislation of
forty-four States.
The defect of the old law was that 1t
was too slow and too costly. 1t took
too long to settle up an estate. and when
the proceeds were finally divided II was
found that the creditors got very little
and registers. assignees and other officers
a great deal. 1t is claimed that the
pending bill is free from those objections;
that its machinery will work more
smoothly and will cost less.
The bill provides that any person may
go into voluntary bankruptcy. Neither
farmer nor a wage-earner, however can
be adjudged an involuntary bankrupt.
Before a person can be adjudicated
bankrupt 1t must be proved In regular
trial before the court that he has COM
mitted one of the following acts:
1. Concealed himself or remained away
from his place OF business or residence
with intent TO avoid service of civil pro-
cess; C2) failed for thirty days TO secure
the release of property levied on by
process OF law for $500 or over; CD made
a transfer of any of his property with
intent to defeat his creditors: (D made
an assignment for the benefit OF credi-
tors or filed in court a written state
ment of inability TO pay his debts: C0
made. while insolvent, contracts for spec
ulations or margins; 90 made. while in
solvent, a transfer Of property or suffered
it TO be taken by process of law for the
purpose of giving a preference: % suf-
fered judgment TO be entered against
himself; 80 secreted property to avoid its
being levied upon by civil process; 90 suf-
fered, while insolvent,, an execution for
$500 or over or a number OF executions
aggregating such amount to be returned
unsatisfed; or QW suspended for thirty
days the payment of his commercial
paper TO the amount of 500 or over.
IL a person Is adtudicated bankrupt
the creditors meet at once and select one
or three trustees TO take possession OF the
estate. manage II, and convert II into
money. When II is for the interest of a
business that II should be carried on they
are allowed TO do so. as are the receivers
of or marshals who may be In possession
before trustees are appointed The fees
allowed the latter are not excessive pro-
vided they do their work promptly and
well. IL poor trustees are selected only
the creditors will be TO blame Corpora
tons as well as individuals can act as
trustees.
II IL the belief of businessmen that II
this bill Is passed they VIII get good
dividends from estates OF debtors which
pay them nothing now and will receive
larger returns from estates which pay
them but little. They believe that proceed
ings win be simpler and briefer than
under the imperfect Insolvency laws OF
the States. and that the general effect
win be to make debtors more honest and
to put an end 10 the practices OF creditors.
vereing sometimes on dishonesty, who
seek ~ grab all the assets As the
business world takes this view OF the
cssc Congress should pass the bill