The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-04-30
THE BANKRUPTCY ACT.
Something About the Law Congress
is Considering Today.

Washington, April 3O-An earnest eff
fort is being made by a large number
of members of the present congress to
secure the passage Of q just bank
ruptcy law. There has been no ma
tiOnal bankruptcy act since 1873. though
efforts have been constantly made to
pass one and the business world has
labcred to secure one. The prospects
are now good that the present con
gress viii enact a law that viii Oper-
ate fairly in settlements of estates of
bankrupts and in conserving the in
solvents assets for the benefit OF the
creditors.
The house committee on judiciary
has agreed upon a bill which is com
promise between the old Torrey bill and
the different demands made for a vol
untary bankruptcy law. and one haV-
ing the Involuntary feature This bill
has beer. reported with a recommended
ton for its enactment and is the bill
which is being considered
The first national bankruptcy act was
passed in April, 1900, and was repealed
in December, 1903 This act. it was
claimed, was solely in the interest Of
the creditor class. The second national
law was passed in 1871 and repealed in
1913 The objection to this law was
that it favored the debtor class The
third and last law was in existence
from 1867 to 1873. and this one filled the
pockets of the bankruptcy lawyers at
the cost of both the creditor and debtor
classes
Marshall Field & co. of Chicago tes-
titled that under the law of 1867-78 they
were able to realize only D per cent
of their claims but that in nine yea rs
after the repeal of that law their aver
age collection of bankrupt claims was
% per cent. The chief objection to
this law consisted of the heavy fees of
officials and other expenses. The bill
now reported to congress has been pre-
pared with especial care to avoid this
obnoxious feature of the law Of 1867
According to the bill now reported to
the house the title to the property of
the bankrupt does not pass from him
until actual adjudicatiOns are made
! Under the law of 1867 the property was
surrendered by the bankrupt when his
petition in bankruptcy was filed.
AnOuher feature Of the proposed law
is that which protects a debtor from
oppression by a creditor. No person
can be forced into bankruptcy undes
its provisions unless he commits fraud
or attempts to make fraudulent prefer
ences, or susDends payment for thirty
/ days while actually insolvent.
toli0Wlng is summary of the main
I provisions Of the bill: Involuntary
/ bankruptcy may be forced only when
a debtor I'D absconds or conceaIs him
sen Tor four months with intent to de-
fraud or % has failed if his property
/ IS levied on for $500 or more he being
| lnsolvent, to release the property. or (9l
makes a transfer of some of his rron-
I efIy Ior the purpose of defrauding his
creditors and not regafned the sa7na
4 within ten days; or (A) made an as
signment; or CD while insolvent per
/ m1tted preference operating for fen
/ days; or C6) permitted a fraudulent
Judgment; or Cd has for ten DAYS Sc
/ creted his property with intent TO de-
fraud; or go suffered executions for
Y $500 to be returned. ono pr0Darfvr
I found; or CD while fnsolvent has sus-
/ pended and has not resumed for thirty
days and until a petition is filed. the
payment of his commercial paper. for
$500 or more.
It is claimed by its friends that there
l is no law which congress could mss
" llleH MoulG DSneat the business world
---1- -----N 80 ~ outllned above
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