The Portland daily press., 1896-04-27

how that there is a so days suspension
of payment and the aggregate OF his de-
faults on commercial paper amounts to
5000 or over.
The bill exempts national banks from
being proceeded against in bankruptcy,
for the reason that Congress has legis-
lated especially in respect to them, and
the most careful provisions exist for pro-
taoting all interests connected by the
national banking laws
A person engaged chiefly in farming or
the t1llage of the soil is also exempt from
its provisions, MS is wage Garner. A
person working for wages, salary, or hire
at a rate of compensation not exceeding
$500 per annum is a wage Garner.
EssIt will be noted that in this bill party
must be owing debts to the amount of
$1,000 or over before he can be adjudged
an involuntary bankrupt. This proyis-
ion is more liberal to the debtor than any
that has ever been enacted or proposed
before.
AS to voluntary bankrupts the bill is
considered very liberal. Any person who
owes debts-corporation are excepted
shall be entitled to the benefits of the
act as a voluntary bankrupt Here all
limitation as to the amount of the indeb5-
edness is removed. So guarded is the
bill that it is provided that voluntary
bankrupt, upon filing an affidavit stating
that he is without and cannot obtain the
money with which to pay such fee, may
file his petition and secure the benefit of
the act without the payment even of the
filing fees otherwise required of volun-
tary bankrupts or the estate in involun-
tary cases. This provision is in line with
the laws Of most of the states which
permit poor persons to sue without CIV
| ing security for costs.
| An important innovation in this bill
is found in one provision. Under the
act of 1867, as interpreted by the courts,
it was held that the title of the bank
rupt's property vested in the assignee as
Of the date of the filing of the petition
in bankruptcy. This bill provides that
the trustee shall be vested by operation
| of law with the title of the bankrupt as
| of the date he was adjudged bankrupt"
| By this change the alleged bankrupt can
sell and convey a perfect title up to the
date of the adjudication, and tho pur-
chaser does not buy at his own risk and
| in danger of having secured On imper-
feet title by reason of an adjudication
which may be made subject to the pur-
chase.
| A comparison of this bi II with the
former bankruptcy laws of this country
shows some important differences.
Under the act of 1867 the Operative,
clerk and house servant" were allowed
priority over other claims to an amount
not exceeding $50 for labor perfor med.
Under this bill the amount that may be
proved by such employees of ban krupt
is axed at $500 to each claimant.
| Under the act of 1867, as amended. any
rerson owing debts proyable in bank
ruptoy exceeding the amount of $500
o9ald be.proce o led against inIbankruptcy.
| Under this bill any person owing debts
to the amount of $1,000 or over may be ad-
| judged bankrupt
| The act of 1867. as amended, provided
that any banker, broker, merchant, trad
er manufacturer, or miner, who had
stopped or suspended and not resumed
payment of his commercial paper within
q period IA days, should be deemed to
have committed an act of bankruptcy,
and to have become liable to be adjudged
bankrupt. He might be worth mil
lion dollars over and above his liabilities,
and yet such a failure for il days would
make him liable to the involuntary pro-
visions OF the act; or if he fraudulently
| stopped payment of his commercial paper
| that constituted an aot of bankruptcy
at once. The latter proposition is not
complained of, but this bill seeks to rem
| edy the former, and requires that the
debtor suspending payment of his COM
mercial paper must in fact be insolvent,
and in addition the suspension must
continue for 80 days and the amount TAX
en- must be at least $500.
| Under the act of 1867 person conld
not take the advantage of voluntary
| bankruptcy unless owing debts exceeding
the amount of $500. Under this bill all
| Limitation is removed as to amount of
| indebtedness, and ho is even exempted
from any expense if he files an affidavit
showing that he has not the means %
pay the fling fee required by this bill.
| All former bankrupt laws nave been
so oppressive In the matter of fees, costs
and expenses that they have in this re-
speot operated seriously against the credi-
tors realizing fairly the assets of the
bankrupt. Throughout this bill the clos-
est attention has been given to this mat
| Continued on Second Page