The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-31

attorney Just across the street who mad q
little claim, jumped on the deed OF trust
and the case went to what was then our
court Of appeals. This tribunal read the
Segment law and righteously informed the
deed OF trust performer that his house was
built on the sand ana couldn't stand.
Finally another lawyer, possibly more
profound than the other. tried his hand. He
began his instrument with a denial that his
client was insolvent, said he only wanted
to secure certain creditors therein named,
christened his creature mortgage" and
wound up his paper with the provision for
the return of the surplus. and thereby hangs
tale. This case went TO the supreme
court that tribunal read carefully and
scrutinzngly the assignment law, and.
after telling us about how the legislature
could not prohibit preferences except i'll
case whore insolyents wanted and intended
to make a general assignment, and how the
common law permitted a man to pay one VI
more of his Just debts with money or prop
erty, even though as a result of such pay
ments his other creditors were denied
share OF his estate. The supreme court said
the instrument was common law as
Segment" and when the legislature wanted
TO take away this privilege they could do
SO. \ great flood of litigation followed,
and you all know the result. Today our
general assignment law remains on the
Statute DOCKS every llils anu tNN'S 49, 49,
in the days OF old but, speaking after the
manner of a Georgia congressman when
he Numbered his eloquent inquiry at
Speaker Crisp. Where is our law at? 1t is
a thing OF beauty-good to look upon, put
almost entirely ornamental, for us seldom
used
"Now. gentlemen OF the committee. l
notice that majority OF your body are
LAWYERS. and of course are familiar with
the various stages through which our courts
have carried us on these questions tahe
it for granted you know the condition. pul
have referred to these things 10 get pack
to first principles | believe in our state
we have mere genuine honesty IMAM any
other State in the Union, whose laws az
ford such splendid opportunities ana oiler
such magnificent inducements Tor pelng
dishonest DO not misunderstand me. III
Is not every man who can not pay MS Just
debts as they mature and is forced 10 inahe
a transfer OF his property that 10 uisI r,,i :
est We have many honest failures rue
times are so out OF joint financially ana
money so scarce that many go to the wall
under circumstances for which they are
not responsible and over which they nave
no control. But do say our ihNh "usn'
to be SO framed as to AFFORD ample pfotec-
ton to those rightly inclined ana 10 re-
strain those inclined TO do wrong. WINE
we can not legislate honesty ana ino.a,s s
into our people we can enact laws that VIII
make stealing difficult OF accomplishment
This should he and no doubt IS the phfl-
otto end sought to be reached by ms reg
islative body Satisfied OF the feasio'iiy,
justice and equality OF any measure ''u
will not hesitate TO adopt IT,
Now what are present conditions Every
morning from October / TO February we
read a half column in our dairy papers
John Smith late last night filed deco OF
trust Preferred creditors, Brown q Jones
attorneys, $1,000; First NauonhI ndhA
$4,000: Mrs. Mary Smith. $4,000 Assets ana
liabilities unknown Dru'hmers' iamss s.S,
adjusters go on the first tram anu iail
over each other TO yet TO the court mouse
and read the instrument. 1t don't mention
any other creditors and conveys only .he
stock of merchandise. IL is known ina,
John Smith did a credit business ana hua'
have some notes and accounts lie is IN
terviewed yes" says Smith u nave
cow notes and accounts. But have got en-
didn't turn 'em over because ! Knew
could collect better than the trustee. Goint
10 collect them and pay my creditors VII
likely call meeting and oner com,
promise Go home anf-write your mouse
am honest and am going to pay my debts
The drummers go home soinetitnes
proposition OF 20 or 30 cents comes, pu
GENERALLY the notes and accounts are col
lected. Smith concludes he owes too muci
IN ever try TO pay, so the trustee sells INT
stock for enough TO pay the attorneys I'M
bank and his relations. ana smith start
his SON. his nephew. or some otner uu
or tried person In business. ana the pro
ceeds OF collecting goes on and he goes q
work for him. The other creditors tax
their judgments and wait for Smith TO IN
herit something or get FESTIVE under IN
judgments and pay them 20 cents on IN
dollar and knock off five years interest.
Now you know this is most usual case
vet for the sake OF preserving to smitn IN
privilege OF paying his bank. TO the OK
chlsion of everything else. the preference
right must be permitted to be part Of GU
laws without regard to the rights OF un
noid creditors. Let us look at II fror
smiths standpoint Suppose We had n
deed Of trust law In the first place sm''
would not have owed his BANK soooo' lor
would moi have let him have that muo
credit. He could not mortgage his stoc
Of goods and continue IN business, SO b
would probably secure his BANK wi.n VA
notes and accounts he wrongfuily Withheld