Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-12-16
AnAxKRIPTcY LAW.

since the Democrats OF Congress have
expressed n willingness to support a bank
ruptcy bill, we think 1t probable that that
long-delayed measure will pass at this
session.
There IS said TO be "a general demand
for such law, but we confess we nave
heard little TO that effect In Virginia.
Here we associate the words bank
ruptcy" and bankrupt court with the
odious name of Underwood, the shameless
Judge who presided over the United states
Court here when the last law began 10
be enforced. But we have the consolation
of knowing that there are no Underwoods
nowadays. and that II is impossible for
so bad law as the old one to get through
Congress.
And thus. while we are not clearly con-
WINGED of the necessity for such law
we do not look upon the probability OF
II with much dread. 1t is said that busi-
ness may be disturbed by the enactment
of it. and possibly this may prove true
in special instances, but that that erect
is not generally expected we may con-
cludc from the fact that hundreds OF
great business organizations have petit
toned Congress for the passage OF the
law. These bodies think II the many who
are now hopelessly weighted down with
old debts could be freed from them. the
country would see the dawn Of a new era
OF Industrial activity. That is no doubt
the opinion of the majority Of those who
have considered the matter, though the
dissenters from that opinion are not in
considerable, either in numbers or stand
ing. However, we have to repeat that
we expect that o. bill will be passed at
this session. IT is gratifying to know that
the costs of bankruptcy will be much less
than under the old law. We believe 1t
is understood, too. that the homestead
exemptions, &c, OF each State viii stand,
as at present.
We take the following from the Asso-
ciated Press's summary of the features
Of the bill:
1t provides for both volunteer bank
ruptcy and involuntary bankruptcy. by
its provisions any one may file petition
and go into voluntary bankruptcy except
a corporation. The latter may be forced
into it, but not otherwise.
Wage-earners, laborers, and farmers
cannot be forced into it. All others are
subject to involuntary bankruptcy Tor
certain designated causes. In general
these involuntary causes relate to frauou-
lent conduct on the part of the BANK
rupt The work of the subcommittee III
finally shaping the measure was llperai-
izing of the former bill. Inc FORMER
clause. providing that man VINO per-
mits his commercial paper to go TOT
thirty days shall be an involuntary pahK-
rupt is eliminated. Where person IN
stitutes proceedings against an alleged
bankrupt by petition and is defeated on
a hearing, the bill. as 1t now STANDS dl-
reefs the courts TO allow the respondent
all reasonable costs, expenses, ana couh-
sci fees to be paid by the petitioner. Inc
petitioning creditor, also, must at the
time of filing or within five days there-
after, file a bond approved by the court
conditioned on the payment of the costs
IT, General effect is to discharge the
hankrupt of all debts after the estate mas
been administered and it has been found
that there has been no fraudulent con-
duct.
The bankrupt measure is so framed as
to make its administration simple ana III
expensive. 1t involves only two ofhcers-
referee and trustee. The former trustee
receives no pay until the estate Is
closed: the referee is to receive zee Oh
SO at the outset. and when the estate Is
closed a commission of one-half of l per
cent. Various penalties, not only against
Tho referee and trustee but the bank
rrnt in case of fraud, are named.