New-York tribune., 1896-04-27
THE BANKRUPTCY BILL.
IT'S EARLY PASSAGE BY THE HOUSE
PROBABLE

CAREFUL, CONSIDERATION GIVEN TO THE MEAS
TIRE IN coMMITTEE-ITs MAIN FEATURES
fpY TELEGRAPH TO THE rRIBUNE]
Washington, April 2a-It Is expected tnat az SUI.
az the Pension bill now pending has been dlsposeo
~ tho House of Representatives will take up ana
consider the bill reported by Chairman Henderson
from the Committee on the Judiciary FOR "A uni
form law on the subject Of bankruptcies through
out the United States" After full considerat on
vote will taken and the bill Will pass Dy iair
majority The present committee as well as s-v-
eral of its predecessors. has bestowed much time
study and labor upon this subject. and 1t Is be-
lieved that the now proposed Is more sax
isfactory and perfect one than that which passed
the House In the List Congress. or those which
were favorably reported from the judiciary Com
mttee in the Lid and LIIId Congresses. The re-
port on the pending bill was prepared by Chairman
Henderson, and It Is an exhaustive and conclusive
argument In favor Of the proposed legislation, and
fairly meets and controverts the objections urged
against 1t.
Opposition TO bankruptcy legislation has come
mainly from the Southern and Western States In
the past, although some Of the more able and
conspicuous advocates of such legislation In Con-
gress have been Western and Southern Senators
and Representatives. The opposition has gradually
diminished In strength and energy. and 1t Is now
apparent that large majortes In both branches Of
Congress favor bankruptcy legislation, although
tnere is sun marked d.nerence OF opinion between
the advocates Of the pending bill and those Of
purely voluntary" system The basis of the pres
ent bill Is the Torrey bill. which was first proposed
In Congress six or eight years ago, and which was
substantially agreed to by National conventions
called and held to consider the subject, and by
Boards Of Trade, Chambers Of Commerce and other
commercial bodies throughout the country. Since
It was first introduced into Congress that bill has
undergone many changes. due to full and earnest
atudy Of the
Judge Torrey himself mas suggested numerous
changes. and ha ever been ready to cooperate with
the committees having charge of IT, to perfect the
measure
The Committee on the Judiciary in this Congress
OF which General Henderson. OF Iowa, Is chairman.
mas spent many weeks In considering the bill by
sections and has noted and taken advantage OF all
just criticisms that have come to It's notice Ac-
cording to the report accompanying the bill the
committee has kept steadily In view:
l. Ihe rights OF the debtor. giving him the
most liberal remedies in voluntary proceedings, and
IN every possible way protecting those who are hon.
est from unjust prosecution and at all times from
persecution ~
:. The rights Of the creditor. giving him ample
protection but lciving no cruel weapon In his hand
D. Inc necessity for law that will be az lnex-
pensive and simple possible In Its operations
Inc committee has sought to make the bill thor-
oughly National. adapted to all parts OF the coun
and has gwen special attention 10 the s,,htec, 81
making It inexpensive In It's admin 'a;rau,n ho,,,g
'hersDy 10 frame Law that would 50 commend H.
self to the people and be so generally acceptable
that II VIII become permanent part Of our general
legislation.
The committee gives severll reasons in su,nor.
OF the proposition that National Banyruntcv ,aw
Is needed. and In doing so calls attention ,o m.
iact tha' the total number OF commercial and In.
u"s"ia taiiures In the United States from 1879 TO
'0'" oo.n years inclusive was III, 1858. with aggre-
gate liabilities amounting to &61l.5 704 The COM
m'ttee also aseertained that the failures and Ia
oii.es for the first three months OF the year 1895
amounted to $500 and 81 100 es2 respectively while
Tor inc frst three months OF 1896 the total number
Oh failures was 4o3l and the total liabilities
amounted TO &S7J5.0l5 an increase over the cor
responding period OF the previous year Of 20 In
'ne number OF failures and OF A5s4O63 In the total
amount OF liabilities In 1853 the total number Of
failures was 6.S5s, which was s-i00 OF per cent OF
the total number engaged In business and In 1895
the total number OF failures l3,l87 which was
100 per cent Of the total number engaged in bus,-
ness The highest number and percentage Of fall
ures for any year within the period was 1929 and
LIS per cent in 1893 The average percentage Of
failures for the entire period was lQ Study of the
foregoing data led the committee to say:
Some few contend that the passage of a bank
ruptcy law would disturb conditions unfavorabiy.
and would be unjust because of the large number
or this bill But the annual average percentage OF
failures as compared with the total number en-
in hundred who fan; and while the total shows
a vast army OF crippled men and startling load
number. as compared to the total engaged n bust
ness is so small that no one should be disturbed
chains and permitted to re-enter the business and
themselves not affected by the proposed law |
The bill We recommend does not contain any pro- |
yisln fha Of tract fha
damages for contracts broken. or for torts. In |
relation to the rights or responsbilit:cs OF such
the commencement o; conducting OF business. Of |
enterprises or Of employing labor. but one simply |
are silly enough to dishonesty or unfortunate |
enough to become insolvent and unable to meet |
The trends OF bankruptcy law contend that |
nothing Is gained for the public by keeping HIM |
down bat :, on n the sonrnry b; The PntS good win
bly, far as they will go among his creditors. and
letting him start anew
The recent financial crisis has crippled so many |
good aggressive, useful citizens all the coun-
try that present conditions appeal loudly for the |
passage OF a bankruptcy law But a study OF the |
statistics which we have submitted will show that |
In the great struggle Of life in this busy country
in business and In respect to whom the operation |
OF a bankruptcy law would be blessing directly |
and indirect blessing to the community at large.
The pending bill provides for both voluntary and
bankruptcy; that is, either the debtor
or his creditors may HE petitioh 10 nave MIN |
adjudged a bankrupt. Nine acts enumerated
and described for the commission Of any one Of |
which the creditors OF debtor may institute pro-
ceedings against him In bankruptcy. These acts
are:
from hs place of business! docs With
70 avoid the service Of civil process and TO defeat
forty-eight hour: before the filing Of petition in
bankruptcy, and before the rights Of creditors
2 Failed within thirty days and until a petition
Ia led while insolvent to secure the release OF any
property levied upon under process Of law for $500
or over. or II such property Is to be sold within
such time under such process then until three days
before the time fixed for such sale.'
g. Made a transfer Of any Of his property with In:
tent 10 defeat his creditors and has not regained