The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-22
NO MORE FRAUD.
Board of Trade Against
Bogus Deeds.
HONESTY IN INSOLVENCY.
Conference Meeting of Leading
Business Men.
THEY WANT AN INSOLVENCY LAW
Sheriffs May Suffer In the Loss of
Fat Fees, but the Public
Will Be Benefited.

The special committee of the Board of
Trade, appointed for the purpose of con-
sulting with the newly elected members OF
the Legislature, met in the Char Der of
Commerce room yesterday afternoon. Tno
purpose of tie meeting was to consider the
passage of laws for the better protection of
the commercial interests of San Francisco
and the Stale at large.
There was no definite action taken with
regard TO the amendments that are deemed
necessary for the better conducting of
business, but the sense of the meeting was
that the unrecoTded deed as a factor in
insolvency must 60. The meeting was we'll
attended by representative men of the
Board of Trade, but for some reason the
committee especially appointed for this
duty did not appear with majority A. A.
Watkins presided over the meeting, and
Joseph Kirke. the attorney, explained the
wishes and purposes Of the conference
committee.
There was only one proposed law that
created any discussion at all. and that was
in reference to deeds that are made for
guaranty and are not recorded. MIR. klrke
held to the point that deed OF this char
acter is calculated to defeat the ends of
justice, inasmuch as it places certain prop
eTty liabilities beyond the reach of admin
istration in cases OF insolvency and invites
fraud in such cases, because no one can
guard against the execution of such instru-
ments Of conveyance.
Mr.. Kirke explained that the changes in
the present iD solvencY law III st desired by
the repreSen tatlye merchants of San Fran
cisco are in accord with the most advanced
commercial ideas and statutes of the lead
ing States in the Union. and that as applied
In those States Lhey work To the general
satisfaction of all concerned. debtors as
well as creditors. The amendments de-
sired are summarized as follows:
Amend sections 10Y. 1913 and 1914 Clvil
Code, so that attachment, judgment liens. etc.,
VIII prevail over unreeorGed deeds.
Amend section 3442, Civil Code, so that
gift of property made by an insolyent shall be
prima facle void.
Amend the assignment act so that secured
creditors cannot vote or prove their claims for
tile full amount thereof.
Amend section of the insolyent act so that
an assignee may he elected IN ten days, the
Sheriff 10 be paid only keepers fees for his
services.
Re-enact section GO OF the insolvent act so
that receiver may be appointed TO replevin
property frauduleutly transferred.
Amend section 40 OF the lnSolvent act to the
effect that discharge cannot be granted a debtor
unless the assignee receives from The estate
40 per cent of creditors claim. OF the 40 per
cent. per cent mot exceeding $1,000 to be
REPAID the debtor.
Omnibus bill to remedy various defects and
intersections in The lnsolvent act, as follows:
(Q) Amend section so that three DAYS at
tachment instead Of tour DAYS is sufficient
ground To file an insolvency petition.
(d) Amend sections 10. II, II. ID and IA. al.
loving Involuntary proceedings 10 be sum-
marty disposed OF Qike Federal bankrupt acD;
the debtor should be required 10 appear in five
days, and after everything demurrer should
ciared 1nsolVent the Sheriff should take posses
sion OF the assets at once, and not wait until
inventories and schedules are hleo.
(c) Amend section II, so that where q first
attachment is dissolved all judgments and exc
cutlons in subsequent cases shall be vacated
and set aside.
(d9 Amend section 49, so that an assignee
may defend as well as prosecute pending ac-
tions IN which the insolvent Is a party.
(e) Amend section As, so that debtor must
apply for a discharge within one year after lie
has been declared insOvenI.
% Amend section 55, so that confessed judg-
ments Will be prima tacie void, and deeds and
mortgages shall be considered made as of the
daies they are recorded.
(g) Amend section 81, so that insolvency petit
lions may be amended the same as complaints
In civil action.
QD Amend section 67, 10 the effect that an
appeal to the Supreme Court VIII not stay pro-
ceedings, unless a bond is given in double the
value OF the property Involved.
Amend the Code OF Civil Procedure so that if
a debtor abscondS or Is guilty of fraudulent
practices unmatured accounts may be sued
upon.
debtors 10 be subject 10 garnishment. Equlta-
Die rights IN tangible property are subject to
attachment, and equitable rights in tangible
property should be subject TO punishment.
Also permit book accounts, etc., TO be levied
on by seizure of the books and mailing notices
to the debtors that the demands due by them
are garnisheed.
Frank II. Powers, Assemblyman-eiect.
was inclined to combat the proposed
amendment to compel all deeds and mort
cages TO be filed for record imme dately
after execution. He gave as his reason
for this that many enterprises now 10
action might be jeopardized If such law
were rlgdly enforced; that men who had
secured credit. and whose solvency was
undoubted, might be thrown into insol.
vency simply because their liabilities to
some grantee would be made known by
the recording of transfers made for surety
oDiy.
In order that business arrangements
made on the basis OF security deeds shall
not suffer by premature action in the
Legislature it was decided to lay the mat
ter over for further discussion at future
meeting of the Board of Trade.
The other proposed amendments, all of
which reduce the perquisites of Sheriffs,
were unanimously Endorsed By the COM
mittee, and the recently elected legislators
were request ed 10 use their efforts TO have
the proposed amendments passed.