Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-05-06
A BANKRUPTCY LAW.
Provisions Of tho Henderson Bill Re-
Gently Passed by the Rouse.
srpGE HUGHES on THIS SUBJECT.
He Thinks the Enactment of "a Con-
scrvstive statute VIII lie for the
Rest Interests of the Country
work Wei In the other Lands.

Considerable interest is felt here as
well a. elsewhere throughout the coun-
try in the passage by the national House
CT Representatives Of the Henderson bill
10 establish a uniform system OF bank
rup,cy.
The bill was passed by the vote Of 157
70 81 after FIVE days Of debate. There
were but two amendments, one unimpor-
tant and the other making the non-pay-
ment Of note for thirty days an act OF
bankruptcy Two substitutes for the bill,
both eliminating the involuntary features,
were defeated. The bill as passed Is
based upon the Torrey bankruptcy bill,
which has been urged before Congress
for several years. II provides for both
voluntary and involuntary bankruptcy.
Under its terms there are eight acts for
which a debtor can be forced into involun-
tary bankruptcy. as follows:
/. II a person has concealed himsef
with intent 10 defeat his creditors fdf
forty-eight hours.
2 Failed for thirty days, while in
solvent, TO secure the release Of any pro-
perry levied upon for 500 or over.
g. Made transfer Of any of his pro-
perty with intent to defeat his creditors.
T. Made an assignment for the benefit
OF his creditors.
g. Made. while insolvent a transfer OF
any OF his property for the purpose of
giving a preference.
Procured or suffered a judgment 70 be
entered against himself with intent to
defeat his creditors and suffered same 10
remain unpaid ten days.
Z. secretod any Of his property TO avoid
It's being levied upon under legal process
against himself.
g. Suffered, while insolvent an execution
for $500 or over to be returned mo pro-
perty found"
NO STATE BANKRUPTCY LAWS.
Judge Robert w. Hughes, who is in the
city, in attendance upon the session Of
the United States Circuit Court OF APP
peals. has always taken a deep interest
in bankruptcy laws. Discussing the sub
1ect with a representative Of the Dispatch
yesterday he said
THE Constitution of the United States
prohibits the States from passing laws
impairing the obligation OF contracts.
Therefore. no State has power TO enact
any bankruptcy law, the effect Of which
shall be 20 discharge a citizen from his
debts on surrendering his entire estate
State should recklessly pass a bank
ruptcy law of its own. and a citizen
should obtain a discharge in bankruptcy
under IT., his plea Of discharge in bank
ruptcy would be no bar to all action
against him. however honestly he may
have surrendered all his property.
1.-THE Federal Constitution does not
withhold from Congress the power 10
pass laws impairing the obligation of
contracts, and contains a clause express
ly authorizing Congress to pass uniform
laws Of bankruptcy throughout the
United States. 1t is for these reasons
that there can be no law of bankruptcy,
except by act Of Congress, and no admin
jstration OF bankruptcy laws except by
the Federal courts.
IN ALMOST ALL COUNTRIES.
"A general bankruptcy law exists in
Utmost every country of advanced civili-
Eation." continued Judge Hughes. "and
forms an important part of its judicial
system. England has a bankruptcy law
almost as old as parliamentary legisla-
ton. In commercial communities the
necessity Of adventure in business and
the varied, numerous, and necessary
speculations OF trade render II not only
highly advisable but eminently just, that
when merchant becomes unfortunate
in business and ceases to be solvent he
shall be released from his debts, If nc
fraud has tainted his conduct, and he
fully and honestly surrenders his pro
perty for the benefit of his creditors.
I'm this country there can be no bank
rurtoy law. except by act of Congress. II
Congress neglects TO pass such a law,
then mercantile failures must be follow
al by deeds of assignment, arbitrarily
prefsrrlug one or more classes of creditors
over others, and leaving the merchant
psrslyzed for life. and unable to resume
business on legal and safe footing.
CONSERVATIVE AND JUST.
1.-THE bankruptcy system is more con.
servstive. more just TO all parties. and
more conducive 10 enterprise and conf
dence IN business.
'There seems TO be every probability that
Congress viii soon enact a bankruptcy
law. from which will be excluded such OBJ
1ectonable features as made the former
one injurious to business. and offensive &c
abe public in its operations and admins
tration'